CBI urges government action to tackle UK youth unemployment

The Confederation of British Industry (CBI) has released a report titled ‘Opportunity in Every Postcode: Ensuring Young People Have Options, Wherever They Live’, arguing that Britain’s youth unemployment crisis is driven by the rising cost of doing business. The report highlights that over one million young people are currently not in education, employment, or training (NEET).

To address this, the CBI is calling on the government to implement several measures before the Autumn Budget. These include cutting employers' National Insurance Contributions (NICs), adopting a 52-week reference period to protect young people’s jobs, and establishing a common framework for skills devolution. Additionally, the CBI suggests changing the tax treatment of business investments in health and well-being services to help firms support young people facing health-related barriers to employment.

According to the report, businesses are currently facing a ‘perfect storm’ of rising costs, including higher National Insurance Contributions and increases to the National Living Wage, which makes it increasingly difficult to create the jobs, apprenticeships, and work experience opportunities necessary for young people to enter the labour market.