Youth unemployment: what can we learn from Europe?

Germany and the Netherlands provide lessons, but we can't copy their approach wholesale.

Speaking at the launch of The Work Foundation’s Missing Million programme, David Miliband laid part of the blame for the rise in youth unemployment on the "chaotic landscape" faced by young people not bound for university. Yet it doesn’t have to be this way. Strong vocational systems in places like the Netherlands and Germany have served to keep youth unemployment consistently low despite the recession.

We all know that youth unemployment is a big problem – despite a slight recent fall there are still over one million young people out of work. The recession is only one part of the picture. Youth unemployment has been rising since 2003, which many will find surprising given these were the "good times" characterised by a sustained period of economic growth. The youth unemployment problem therefore cannot be explained by economic difficulties alone – its nature is both cyclical and structural. Unfortunately this means that the issue will remain with us even beyond today’s frosty economic climate.

The UK is certainly not alone in crisis – there are other European countries with much higher rates of unemployment. For instance in Spain, youth unemployment is staggeringly high, with half of young people unemployed. The UK itself currently sits around the European average, however in countries such as Germany and the Netherlands the rate has remained consistently low, with fewer than one in ten young people seeking work. Part of the explanation for the comparatively poor performance of the UK must be economic, but it is clear from longer trend data that this is only part of the answer.

Speaking at the event, Professor David Bell quoted Klaus Zimmerman who emphasised the strength of the German apprenticeship system, which he compared to a:

Gigantic microeconomic management exercise that involves all the relevant stakeholders in society.

In the UK, as the government recognises, the quality of apprenticeships is mixed. Currently, the success rate on apprenticeships is lower than other types of vocational skills training – although this is an improvement from a decade ago. Apprenticeships in the UK are much shorter than in some other countries, lasting between one and two years, compared with a norm of three years or longer in Germany and Austria. Another central difference with other countries is employer attitudes. Just 8 per cent of UK employers offer them, compared with a third in Australia – among the lowest in the developed world.

The rebuilding of apprenticeship began under the previous Labour Government and is being grown further by the Coalition. But we begin from a very low base, and it is not just the quantity and quality of the system that it is questionable - the lack of clear pathways into further education or work for those not attending university is compounding the problem, which David Miliband compared to a “field of unmarked landmines”. Part of the strength of the German system, Zimmerman argues, is the focus on detail and the co-ordination of all elements of a young person’s journey.

It is this that makes the difference, not, as Zimmerman said:

Lofty white papers or grandiose policy announcements issued in the national capital.

In Germany the system is built from the bottom-up, involving the whole community. While we have to recognise that we can’t entirely replicate their approach in the UK, we are lacking neither the organisations committed to the problem nor the political will to act. Ultimately, the focus has to be on the experience of each young person, and it is paramount that we ensure a continuity of support between school and the world of work – it is here that we can have the greatest impact.

German apprentices at work in Seimens. Photograph: Getty Images

Katherine Jones is a research assistant  for the The Work Foundation’s Socio-Economic team.

As part of their Bottom Ten Million programme she predominantly been working on a project on inequality in cities and investigating the changing characteristics of NEETs.

She studied politics and economics at the University of Manchester and hold an MSc in Social Policy Research from the London School of Economics.

Lizzie Crowley is leading The Work Foundation's work on Innovation in Cities for the Cities 2020 programme. She will also be running one of the Bottom Ten Million research strands, looking at the clustering of highly skilled workers in particular cities and regions and what this means for those with low skill levels.

Lizzie graduated in Sociology and has a master's degree in Social Science Research Methods, both from the University of Glasgow.

 

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Cabinet audit: what does the appointment of Andrea Leadsom as Environment Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for Environment, Food and Rural Affairs.

A little over a week into Andrea Leadsom’s new role as Secretary of State for Environment, Food and Rural Affairs (Defra), and senior industry figures are already questioning her credentials. A growing list of campaigners have called for her resignation, and even the Cabinet Office implied that her department's responsibilities will be downgraded.

So far, so bad.

The appointment would appear to be something of a consolation prize, coming just days after Leadsom pulled out of the Conservative leadership race and allowed Theresa May to enter No 10 unopposed.

Yet while Leadsom may have been able to twist the truth on her CV in the City, no amount of tampering will improve the agriculture-related side to her record: one barely exists. In fact, recent statements made on the subject have only added to her reputation for vacuous opinion: “It would make so much more sense if those with the big fields do the sheep, and those with the hill farms do the butterflies,” she told an audience assembled for a referendum debate. No matter the livelihoods of thousands of the UK’s hilltop sheep farmers, then? No need for butterflies outside of national parks?

Normally such a lack of experience is unsurprising. The department has gained a reputation as something of a ministerial backwater; a useful place to send problematic colleagues for some sobering time-out.

But these are not normal times.

As Brexit negotiations unfold, Defra will be central to establishing new, domestic policies for UK food and farming; sectors worth around £108bn to the economy and responsible for employing one in eight of the population.

In this context, Leadsom’s appointment seems, at best, a misguided attempt to make the architects of Brexit either live up to their promises or be seen to fail in the attempt.

At worst, May might actually think she is a good fit for the job. Leadsom’s one, water-tight credential – her commitment to opposing restraints on industry – certainly has its upsides for a Prime Minister in need of an alternative to the EU’s Common Agricultural Policy (CAP); a policy responsible for around 40 per cent the entire EU budget.

Why not leave such a daunting task in the hands of someone with an instinct for “abolishing” subsidies  thus freeing up money to spend elsewhere?

As with most things to do with the EU, CAP has some major cons and some equally compelling pros. Take the fact that 80 per cent of CAP aid is paid out to the richest 25 per cent of farmers (most of whom are either landed gentry or vast, industrialised, mega-farmers). But then offset this against the provision of vital lifelines for some of the UK’s most conscientious, local and insecure of food producers.

The NFU told the New Statesman that there are many issues in need of urgent attention; from an improved Basic Payment Scheme, to guarantees for agri-environment funding, and a commitment to the 25-year TB eradication strategy. But that they also hope, above all, “that Mrs Leadsom will champion British food and farming. Our industry has a great story to tell”.

The construction of a new domestic agricultural policy is a once-in-a-generation opportunity for Britain to truly decide where its priorities for food and environment lie, as well as to which kind of farmers (as well as which countries) it wants to delegate their delivery.

In the context of so much uncertainty and such great opportunity, Leadsom has a tough job ahead of her. And no amount of “speaking as a mother” will change that.

India Bourke is the New Statesman's editorial assistant.