The loss of jobs among young people in Britain threatens an entire generation

The British government warned that the country’s youth face a real danger that threatens to turn them into a “lost generation,” after it became clear that about half of the jobs that were cut since the Labor Party took power were held by those under the age of 25.

This warning comes at a time when the government is facing sharp criticism before announcing the fall budget.

Analysts in The Guardian newspaper highlighted the significant rise in unemployment rates in the United Kingdom, which have reached their highest levels since the Corona pandemic, driven mainly by the escalating crisis in youth jobs.

Data indicate that about 46% of the lost jobs – representing about 170,000 jobs that have been off the payroll since last June – belonged to workers under the age of 25, which means the loss of about 150 jobs per day.

Former Labor Education Minister David Blunkett said that despite the measures taken by the government, there is a real danger that an entire generation will be left behind, adding: “I think we need to work together, because if we do not act now, we will find ourselves facing a lost generation, and if we do not take appropriate steps to prevent this, the economic, social and personal consequences will be devastating.”

Blunkett – who was one of the most prominent figures in Tony Blair’s Labor government – called on the current Prime Minister, Keir Starmer, to consider launching a new version of the “New Deal for Youth” that was implemented in the 1990s, during the first period of Blair’s government.

Highest rate

The figures reveal that the unemployment rate among British youth has risen from 14.8% about a year ago to 15.3% currently, which is the highest rate recorded outside the Corona pandemic period since 2015. It is also approximately three times greater than the general unemployment rate for those over the age of 16, and long-term unemployment among young people has reached its highest level in a full decade.

Although young people under the age of 25 constitute only about 10% of the total workforce in the United Kingdom, The Guardian’s analyzes based on data from the British Revenue and Customs Authority, which were recently published, showed that young people are the group most affected by job losses over the past year.

Figures issued by the British Office for National Statistics show that the number of employees under the age of 25 on the payrolls decreased by about 77,000 last November, compared to what it was in June 2024, that is, before the landslide victory of the Labor Party led by Keir Starmer in the elections, and this decrease is mainly due to a shrinkage in the number of employees under the age of 18.

Although the data showed some recovery – adding about 37,000 young employees to payrolls – the overall numbers of young workers are still lower than they were in June last year.

Sharp criticism

The Labor Party is facing severe criticism due to the decline in the labor market, after Finance Minister Rachel Reeves raised National Insurance contributions by 25 pounds for employees within last year’s budget, and government critics exploited this increase to put pressure on it, while the Bank of England indicated that raising taxes had a negative impact on employment, especially in the hospitality and retail sectors, which constitute a basic entry point for young people into the labor market.

Shadow Finance Minister Mel Stride said: “The Chancellor is responsible for creating a lost generation. Job opportunities for young people cannot be created by punishing the companies that employ them.”

For her part, the spokeswoman for the Ministry of Finance for the Liberal Democratic Party, Daisy Cooper, called on the Minister of Finance, Rachel Reeves, to reverse the tax increase announced in the November budget, considering that “the youth jobs crisis is a time bomb, and there are clear solutions that are only waiting for a decision from the Minister of Finance.” About the Guardian

• The increase in taxes has negatively affected employment, especially in the hospitality and retail sectors, which constitute the starting point for young people into the labor market.