TUC analysis of official Government statistics released today (Tuesday) shows that more than one in three (39 per cent) unemployed young people aged 16-24 have now been out of work for more than six months. The last time so many young people were long-term unemployed was 15 years ago, in October 1994.
There are now 366,000 young people who have been unemployed for more than six months. With the latest jobless figures from the Office of National Statistics (ONS) out tomorrow (Wednesday), the TUC expects to see yet another sharp increase in youth unemployment.
Young people in the West Midlands have been hardest hit by the recession, with youth unemployment there increasing more than twice as fast as the UK average. The region has the highest youth unemployment rate at 26.7 per cent, followed by the North East (22.2 per cent) and Yorkshire and the Humber (21.2 per cent).
The TUC is warning that a failure to act to stem the flow of rising youth unemployment could leave a generation of young people on the scrap heap, as happened in the 1980s. The Government’s Future Jobs Fund for any young person who has been out of work for at least ten months is a good start, says the TUC. Funds for more than 50,000 jobs have already been awarded, with a large number of places created in areas of the UK currently experiencing high unemployment. Any attempt to cut this scheme or end the economic stimulus package would be a disaster for thousands of unemployed young people, the TUC believes.
However the Future Jobs Fund only has 100,000 places for young people. The TUC is concerned that the scheme will be oversubscribed meaning not all long-term unemployed youngsters will be able to take up a place. The TUC is also concerned there is not enough genuine support in place to help those who have only recently become unemployed, and that young people are at risk of exploitation through unpaid internships and work experience.
Midlands TUC Regional Secretary Cheryl Pidgeon said: “Youth unemployment was a concern for the TUC before the recession started, but over the last year the numbers unable to find work have rocketed. It’s clear that young people are among those bearing the brunt of the recession and rising unemployment. One in five of the UK’s young population is currently out of work, and more than 360,000 young people have already spent more than six months on the dole."
Ms Pidgeon continued, “This is a crisis for our young people. Prolonged periods of joblessness permanently damage careers and without continued Government investment we risk losing this generation, who are vital to our future labour market performance. The Future Jobs Fund is providing new jobs at decent wages for young people, and cutting it would be a disaster. But we also want to see real support for those who have only just lost their jobs. While internships can be a valuable means of providing young people with work experience, great care needs to be taken to ensure that they are not used to exploit young people or as a substitute for real jobs. It is important that interns receive their legal rights and are paid at least the minimum wage.”
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