Youth employment and student debt face systemic challenges

Young people in the UK are facing significant systemic barriers to entering the workforce and managing educational costs. A report on the student finance system in England indicates that current students carry a debt and tax burden more than twice that of previous generations.

Former Labour minister Alan Milburn identified a “whole system failure” regarding youth employment, noting that 84% of those not in education, employment, or training (NEETs) desire to work but face obstacles such as the decline of apprenticeships and a narrow academic focus in education. Milburn warned of a potential “lost generation.”

Globally, the situation remains challenging, with youth unemployment rates exceeding 15% in 20 of the 38 OECD countries. Additionally, a report by the CMI found a disconnect between employer expectations and workforce readiness, with 70% of young people reporting that employers hold a negative bias against their generation.