Young People out of Labour Market Decelerate the UK’s Economic Growth

1. Why do young British people reject joining the labour market?
2. How could the youths help develop the Uk’s economy?
3. What should the government do to encourage the youth to join the job market?

Many young people in Britain have lost hope in their dream jobs. A quarter of young people out of the labour market have yet to make a plan to find a job. The lack of labour supply will push more pressure on the struggling economy and affect the UK’s economic growth. 

Britain Lacks Young Motivated Workforce 

Fundamental shifts occurred in the UK’s labour market. A survey by the City and Guides showed that a quarter of a million young people who do not work would not enter the labour market. Young people in Britain have given up on achieving their plans due to a lack of hope. Young labour supply adds to the UK’s economic growth, but Britain is losing this potential.  

Young People Cannot Find Good Jobs.

According to the City and Guides, two-thirds of 18 to 24-year-old Britons complain that it is too difficult to find a good job. A fifth of young people needs help understanding how to apply for a career successfully. Around a third of them have yet to achieve their career ambitions. Moreover, education must give the youths the proper skills to get a job. 

Economic Volatility Hit the Youths 

Britain’s existing job system needs to be revised because young people do not meet their potential and hardly reach their ambitions. Young people are more vulnerable than the rest of the working population regarding social and economic volatility. City and Guilds CEO has said that youth unemployment has been an issue in Britain for a decade. Regrettably, the high youth unemployment issue influences the UK’s economic growth.

A Lower Workforce Puts Pressure on Economy 

Less labour supply puts pressure on the UK economy potential. According to the Bank of England, workforce abandonment heavily burdened the UK’s economic growth. That could cause a miserable period for Britain, as it cannot experience the pre-pandemic economic output until 2026. Detachment from work and a shrunken workforce adds to the existing financial pressure. 

Covid Affected the Youths the Most 

During the Covid pandemic, the number of people who took active parts in the UK labour market decreased. The consequences of the pandemic had terrible impacts on young people in the UK. The employment rate of young people declined more than the other working age groups. Accordingly, the economic inactivity rate of British youths rose during the Covid pandemic. 

Economic Inactivity Is a Challenge 

Many inactive individuals of working age do not want a job. The rise of economic inactivity is a challenge that threatens the UK’s economic growth. Working people have more money to spend than those who depend on benefits. However, half the young workers receive family financial support to afford living costs. Economic uncertainty makes the youths less optimistic about their future.

Economic Uncertainty Hits the UK 

The Covid pandemic, the financial crisis, and Brexit contributed to economic uncertainty in Britain. After Brexit, Britain is less open to trade and has fewer European workers in the labour market. The UK’s economic growth has experienced stagnation during the last few years due to Brexit and Covid pandemic. The soaring inflation squeezed the households’ budgets, but wages are not keeping up. 

Wages Are Lower than Living Costs 

More than a fifth of UK workers struggle to afford living costs due to higher inflation. Millions of British workers have been paid less than actual living costs. Teachers, nurses, university workers, train workers, NHS staff, and many other British employees have held strikes over the past few months. Wages dissatisfaction has made many workers plan to quit their jobs across the UK. 

Disappointed Young Britons Refuse to Work 

Young people are not interested in going to work as many British workers are hardly supporting their families. Many young Britons fear they will never earn enough money to support having children. Britain is experiencing the tightest cost-of-living crisis, and high inflation hurts middle and low-income households. The UK’s economic growth is the worst among the G7 group, and the young Britons’ main concern is money. 

UK’s Economic Growth Is Hindered 

Britain is the only large economy to shrink in 2023, and households and businesses come under intense pressure. International Monetary Fund predicted the UK economy would contract by 0.6% this year. A sense of decline hinders the UK’s economic growth, and household budgets remain stretched. Most British people in the labour market feel they need to be more secure with their salaries. 

Low Wages Disappoint People  

Financial well-being is a significant factor that encourages more people to join the labour market. Low payment and high living costs led to economic inactivity in Britain and among young people. The decline in disposable income is disappointing and discourages many people from joining the job market. British young people need to become more optimistic about the future of the country’s economy. 

Economically Inactive People Are Disappointed 

The absence of workforce participation is a big problem for the UK. Long-term structural issues are slowing down the UK’s economic growth. Even Brexit could not make more British young people join the labour market. Although the doors for immigrants are not open and there are job vacancies, the British youths do not search for a job.

Society Needs Young Talents 

Some young people feel excluded from the labour market. They see limited opportunities for progress and lose hope, so they reject searching for a job. When young people leave the labour market, society loses the needed talent and creativity for economic recovery. Businesses should do more to open doors to young people from all backgrounds.

Government, Businesses Must Help Young Brits 

The UK government and businesses must support young people to upskill and access job opportunities. Companies need to recruit youths based on the young people’s attitudes and aptitudes. The government should pay more attention to young people’s skills and education. It should create a link between education and the labour market to train young people and prepare them for future jobs.