Efforts Required to Bolster Youth Employment Amidst Slowing Labour Market Conditions
UK Calls for Apprenticeship Guarantee for Young Workers Amidst Labour Market Challenges
The retail and hospitality sectors have seen significant declines in employee numbers over the past year, according to the latest Office for National Statistics (ONS) labour market figures. This has led to concerns about the future of job opportunities for young people in these industries.
Amidst these challenges, the discussion around introducing an Apprenticeship Guarantee for 16 to 24-year-olds has gained momentum. Currently, the UK does not have a formal Apprenticeship Guarantee, but there is active discussion and calls for its introduction to address persistent youth unemployment.
The government has extended the Youth Guarantee trailblazer scheme, which provides opportunities for 18 to 21-year-olds to earn or learn, backed by a £45 million investment. However, professional bodies like the Chartered Institute of Personnel and Development (CIPD) argue that this is insufficient. James Cockett, a senior labour market economist for the CIPD, has explicitly called for an Apprenticeship Guarantee to provide clear, employer-backed apprenticeship pathways for all young people.
The CIPD highlights that the latest data show little improvement in youth unemployment and advocates for bolder actions, including an Apprenticeship Guarantee. They emphasize that quality apprenticeships and employer-backed training are critical to improving career outcomes, particularly for vulnerable groups.
Apprenticeship funding and delivery are evolving, with recent reforms providing more flexible and targeted apprenticeship frameworks. However, the CIPD stresses the need for a clear government commitment to guarantee apprenticeship opportunities for young people to ensure they can access these pathways amidst broader labour market challenges and new Employment Rights Bill provisions that may reduce employers’ willingness to hire inexperienced young workers.
The proposed Apprenticeship Guarantee is seen as a means to help employers build future talent pipelines. By guaranteeing apprenticeship places for young people, it could provide valuable opportunities for learning and earning, while also addressing skills gaps in sectors like hospitality and retail.
In summary, while apprenticeship funding and access mechanisms are improving, a formal Apprenticeship Guarantee specifically guaranteeing apprenticeship places for all 16 to 24-year-olds has not yet been implemented. There is a growing call, especially from skills and HR bodies, for such a guarantee to be introduced as a key policy to tackle youth unemployment in key sectors like hospitality and retail. The current Youth Guarantee scheme extension is an important but preliminary step toward this goal.
- To bolster employment opportunities for young people in declining sectors, there are growing calls for the introduction of an Apprenticeship Guarantee for 16 to 24-year-olds as a concrete policy to counteract persistent youth unemployment, particularly in industries like hospitality and retail.
- In the face of reports indicating minimal improvement in youth unemployment, professional bodies such as the Chartered Institute of Personnel and Development (CIPD) advocates for an Apprenticeship Guarantee, emphasizing that it could provide a clear, employer-backed apprenticeship pathway for all young people, thereby notably contributing to their education and self-development.
