The Staggers

The New Statesman’s rolling politics blog

Youth unemployment hits a million

Unemployment rises to 2.62m, while youth unemployment reaches 1.02m, the highest level since 1992.

By George Eaton Published 16 November 2011 10:46

The latest employment figures are the grimmest for some time. Unemployment has risen to 2.62m (8.3 per cent), up 129,000 (0.4 per cent) on the quarter (the largest quarterly increase since July 2009) and the highest level since 1994.

Meanwhile, youth unemployment has passed the symbolic million mark. There are now 1.02m (21.9 per cent) 16-24 year olds out of work, 67,000 (1.7 per cent) more than in the previous quarter and the highest number since comparable records began in 1992. UK youth unemployment is now above the EU average of 21.4 per cent and the eurozone average of 21.2 per cent. For the record, the total includes 286,000 people in full-time education who were looking for part-time work. But Chris Grayling is deluded if he thinks that youth unemployment of 730,000 is something to boast about. The danger of a lost generation is increasing every month.

Ministers are right to point out that high youth unemployment is a long-standing problem but their policies have made a bad situation worse. Since it came to power, the coalition has scrapped the Future Jobs Fund (described by Frank Field, the government's poverty adviser, as "one of the most precious things the last government was involved in"), abolished the Education Maintenance Allowance (EMA) and announced that it will offer 10,000 fewer university places next year. All measures that have exacerbated the jobs crisis.

And worse could be to come. George Osborne promised that private-sector job creation would "far outweigh" the job losses in the public-sector but few now believe him. The ONS didn't publish new figures on public and private sector employment this month but September's bulletin showed that while 264,000 private-sector jobs have been created over the last year, 240,000 public-sector jobs have been lost, a net gain of just 24,000 jobs. Worse, over the quarter, 111,000 public-sector jobs were lost, while just 41,000 private-sector jobs were created, suggesting that the labour market is beginning to stagnate.

Osborne, who has already been forced to announce an extra £44.4bn of borrowing due to lower tax revenues and higher welfare payments, will find it ever harder to reduce the deficit as unemployment continues to rise. As the self-defeating nature of austerity becomes clear, the pressure for a change of course will become even greater.

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Tags: unemployment

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28 comments

Fri, 2011-11-18 21:58 — Awake!

PJ
you're not too discerning are you?

Wed, 2011-11-16 21:09 — Awake!

jo swann 13.54
'The real problem was not the job, it was the individual.'

That says it all.

There's no point discussing when the base is so low.

Thu, 2011-11-17 08:00 — Luddite (not verified)

Why is Labour's generation unfit and unprepared for the world of work?

Thu, 2011-11-17 10:00 — Awake!

Remeber what Balls said when there was a girl in the news some years back and she'd had a couple of kids by the time she was 15 or 16...
'we will do everything to support her, she'll want foe nothing blah blah we owe that to her'
It's funny how the explosion in social services under the last govt meant that the buck could endlessly be passed round- sometimes the addage too many cooks spoil the broth can't be more true. In the girls case, everyone rishing round to show how caring they are, but no one willing to discuss the difficult issues of it ain't great to sleep around when you're a kid. And that same fear of delivering unwanted news is why teachers are so crap at teaching maths, cos it requires work and focus , so instead the kids are let to run riot (or do another scribble)
Because we are white people we don't meed to apply ourselves, the efnics owe us a living and thats the way its been and shll remain so- flppin chinks pushing out 5k engineering graduates a week, who do they think they are??

Thu, 2011-11-17 10:39 — swatantra nandanwar

I should point out that the last time it peaked was '94 after 14 years of a Tory Govt so they were also responsible for a 'lost generation', and these are the parents of our present generation.
The point about a lack of a work ethic is well made, and also that the world doesn't owe Britain a living.
We should have kept the Polytechnics as Centres of Applied Sciences and Engineering and developed them like the Germans did, with their Tech Schools and Tech Colleges.
Balls was wrong to say what he did, if he did; that girl should have been the responsibility of her parents, not the State.
I've said before that kids aren't even mature and responsible at 16, let alone 18. Its a pity we don't raise the age of majority back to 21. Until then they should be the responsibility of their parents.

Thu, 2011-11-17 11:43 — p j wall (not verified)

Awake!.....Go back to sleep!, your incoherent rants are becoming more bizarre by the day??, now go and have your usual temper tantrum!!, I find it puzzling yet again, you bring race and ethnicity into the subject??, You really have major issues regarding this!!, i await your incoherent abusive reply?.

Wed, 2011-11-16 11:31 — p j wall (not verified)

Dont panic everyone!, Grayling`s just been on the TV and he`s assured us it`s not his, Gideons, or Flashmans fault?, it`s all those nasty europeans fault!!, PHEW!!, funny that, wasn`t it this high under a previous Tory govt?, nice to see a govt that cares?, unfortunately it`s not this one!!.

Wed, 2011-11-16 12:19 — Stu (not verified)

More university places won't make a difference for a long time it has been known that a university degree doesn't mean you're gauranteed a job. Experience counts for a lot more so the work experience and apprenticeship scheme in my view is now more important than ever. Tories are doing a good job about that.

If I were a graduate now, being so young and independent with little or no ties I would venture abroad. There must be work in let's say China to teach english for example and learn more about different cultures and the value of money...

Wed, 2011-11-16 12:35 — matthew fox (not verified)

I don't why Stu is contributing, he is clueless when it comes to facts.

The poor dear talked about a " Massive Rise in unemployment " under Labour, during the " Boom " years, yet unemployment rose under Labour in 2007.

How could someone be so badly misinformed?

Wed, 2011-11-16 13:03 — Bill Fraser (not verified)

The majority of youth unemployment occurred under 'new' Labour... the
government that "failed" to control mass immigration...

Wed, 2011-11-16 13:17 — Des Demona (not verified)

@Bill Fraser
Ummmmm blatent lies are not a debate.

In 1986 under the Tories the number 0f 18-24 year olds claiming benefit was a million. Under Tory Governments this never dropped below 400k.

From 1997 under Labour this figure dropped to a fairly steady 250k until 2008 and the credit crunch when it rose to 500k.

Thu, 2011-11-24 17:15 — Matt Thompson (not verified)

NET MIGRATION 250,000. ANARCHY AND CIVIL WAR IN THE MAKING.

Wed, 2011-11-16 13:30 — Des Demona (not verified)

@B.SMALL

What the hell is a euphorism?

Wed, 2011-11-16 13:55 — Des Demona (not verified)

@B SMALL

So what have you done to annoy the gods then?

Wed, 2011-11-16 13:55 — Clair McCleary (not verified)

The theory was flooding the country with immigrants made everyone better off?

Wed, 2011-11-16 14:11 — Matt Thompson (not verified)

Youth unemployment has been on the rise ever since LABOUR opened the floodgates. 2004 onwards.

Wed, 2011-11-16 14:14 — Joe Swann (not verified)

@ bsmall 12.45,

The teaching profession is open to anyone, if you're envious of the lifestyle of a teacher, change career.

But more importantly, teachers are the most important 'wealth' creators in today's age. Anyone with even a modest education would understand that. After all, at current student:teacher ratios in England the average primary school teacher will educate 20 individuals a year. Show me an office worker that contributes as much to the nation's long term economic well being and I'll show you someone that had a good teacher.

Wed, 2011-11-16 14:27 — Stu (not verified)

My mistake, employment rose because Labour increased the size of the public sector and borrowing more money to pay for the salaries nevermind the more than generous pension schemes... Oh but i know what your thinking and about to write right now. But let me give you one example...

There was once a Labour council that decided to employ a 19 year old to be a town promoter, his job was to do some research, make leaflets and hand them out to the public. He was paid quite well but he came out and said he did F'all everyday but surf the net. No one cared for his career development and all he saw was just money for nothing. It was revealed that the council decided to employ him because they had a surplus in their budget, rather than report their savings they decided to spend it any way they can thus ensuring that they will get even more money the next time round. Well they achieved a few things... 1) brought down the unemployment figures, 2) ensured the well being and career development of their staff, 3) got value for money.

Now lets talk about my comment in this article... it was a fair unbiased comment unlike everything that comes out of your mouth.

Wed, 2011-11-16 14:30 — p j wall (not verified)

OH DEAR!!, it looks like the Right Wing Xenaphobes are trying to take over this debate!!.

Wed, 2011-11-16 14:44 — Marathonman (not verified)

So B. SMALL, all teachers are feckless, useless and contribute nothing worthwhile to a our children's life chances?

Hang em high eh?

Wed, 2011-11-16 14:54 — Joe Swann (not verified)

@Stu 13.27,

Assuming that this young chap was on a modest wage, he will probably have paid back 40% of his wages to the state in income tax,NI and VAT, and the other 60% will no doubt have found its way into the UK private sector, who are then taxed heavily by the state. Of course you might prefer the government to have spent £40k per year holding this chap in prison for his obvious ineptitude.

All I'm saying is that your's was not the choiciest illustration of your point. Tourism in the UK contributes close to £100bn per year to GDP, and this fellow had a chance to contribute something to that figure, although he clearly lacked the initiative and creativity to use the opportunity offered to him. The real problem was not the job, it was the individual.

Wed, 2011-11-16 15:02 — matthew fox (not verified)

No Stu, the wrong answer, trying again.

According to you, and using your own words, there was a " Massive rise in unemployment " during the boom years.

You really need to retract that false statement.

Better luck next time old chap.

Wed, 2011-11-16 15:22 — Joe Swann (not verified)

@B. Small 14.04,

With all due respect, one thing you clearly did not learn at school was how to get your point across succintly. Teachers are not overpaid, if they were, teacher training positions would be massively oversubscribed. And if you used your brain a little more it would be obvious to you that the majority of flaws you point out regarding today's youth stem not from their teachers, but from parenting.

The truth is you are old and one of the past generation. I'm sure people uttered the same nonsense about your generation being useless back when you were younger, it's human nature.

Wed, 2011-11-16 15:38 — Stu (not verified)

@Joe,
I understand where you're coming from but it's not all about how the individual capitalises on the opportunity given to him/her but also how they are encouraged, trained and if need be mentored too.

@matty,
I retract my statement

Wed, 2011-11-16 16:51 — matthew fox (not verified)

Excellent Stu, please don't do it again.