How can we tackle youth unemployment?

The government's Work Programme will fall short unless employers are incentivised.

Youth unemployment today reached 973,000, and it looks like it will soon climb above the one million mark again. Add this to a back drop of the summer of 2011 where British youth rampaged through the cities of England, causing millions of pounds worth of damage, incalculable disruption to our high streets and untold distress to the people who live and work in the affected areas.

Is this youth unemployment, cause and effect? As a nation we're heading towards a black hole. If we do not have a viable remedial strategy -- one we all buy into -- then the summer of 2011 will be repeated more frequently and in more places across the land. I'm not being alarmist, just a realist.

So what could that national strategy be? It has to be based in partnership between employers, government and the third sector. Government must show leadership and provide the funding, but employers must match this commitment. They must understand and acknowledge the role they have to play in helping to heal this deep societal wound -- the eradication of hope and opportunities of our youth. After all, employers accept their responsibilities when it comes to the environment, equality and employee rights, so why not their role and responsibilities to future generations? They can make an immediate and very practical impact which would have huge benefits. This could be as simple as looking at the reality of youth unemployment, mentoring young people and helping them understand the reality of the world of work, or offering work experience and apprenticeships.

Yes we've got the government's Work Programme, and yes some employers have accepted jobseekers from the programme, but their involvement is merely on an ad hoc basis. If initiatives such as the Work Programme are to succeed, then it has to be employer-led and for that to happen, employers should be incentivised. Perhaps the cost of employing a long term jobseeker should be fully tax deductible -- that would make a huge difference to employers and, given the fact that over 90 per cent of business are small and medium enterprises (SMEs), it would also make a huge difference to the number of organisations supporting the programme and ultimately supporting the one million odd young jobseekers.

But the public sector also has to play its part. We cannot place the burden of reducing unemployment and rebuilding our communities solely on the private sector, because there has to be a partnership between government and the private sector, the public sector and the third sector -- the facilitators in this mix. We all have our part to play if a remedial strategy is to prove successful.

The truth is that the cost of incentivising employers would be more than offset by the positive impact on our society, as well as the significant drop in benefits claims and immediate and future tax paid by young people with incomes in their pocket.

After the summer riots, we really do need to acknowledge the link between unemployment and social unrest and therefore we urgently need radical new thinking and radical new measures. We have had a wakeup call, so we have to do something. This is just the start.

Fred Turok is the founder and chair of youth employment charity TAG (Transforming a Generation).

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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.