The catch-22 holding back Britain’s youth

Our young people need businesses to take a fresh look at them – and at work experience, writes Crossrail's Valerie Todd.

The UK economy has struggled through recessions and weak recoveries for some time now, with uncertain hints of growth every few months. No one feels the impact of this more than young people, who have fewer opportunities than ever before to find jobs and get into work. There is an urgent need to create more job opportunities for young people, even if our finance teams shake their heads disapprovingly. Not doing so fails ultimately fails everyone.

Word of mouth communication is now the number one recruitment channel for employers. But this doesn’t work well for young people, who haven’t yet had time to build the right contacts, networks and social capital. Recruitment needs to become less about who you know, and more about what you know and what you can do. Otherwise, young people miss out – and so do employers.

Another structural barrier is experience. Contrary to popular belief, most employers who take on young people straight from education find them well prepared for work. Yet most businesses attach great value to experience when recruiting, to the detriment of other qualities such as attitude, common sense and willingness to learn. Lack of experience is the top reason why employers reject young hopefuls’ job applications. And there’s only one cure for it. A job.

Yet other structural changes have meant that the sorts of job where young people used to get their starts have been on the wane.  My first job doesn’t exist anymore. Does yours? With only one in four employers offering work experience and the intense competition for Saturday jobs, young people today are stuck in a catch-22 situation. 

Perhaps what we need is a refreshed understanding of work experience. Work experience needn’t just be a two-week placement in the summer holidays,  Employers can assist young people in a wide variety of ways,  for example through it can also include careers talks, site visits, help with interview technique,  and mentoring. The New Statesman is a great example of creative thinking about work experience.  Recognising that many graduates aren’t able to relocate for an internship, they are trialling "virtual work experience" placements. Editors mentor graduates remotely, working with them to develop their writing and publish articles on the New Statesman website. This kind of flexibility could give employers, especially smaller businesses who are starved of time and resource, more choice around how to build work experience and when and where to host it. It might also mean fewer 16 year-olds whose "work experience" consists of introducing hot water to tea bags. 

The shape of the labour market is also loaded against young people trying to get a job. Although the recession has led to subdued recruitment activity generally, employment in managerial and professional roles has grown by over 900,000 – and this growth is forecast to continue. Unfortunately, employers who specialise in these jobs don’t tend to recruit young people. When they do, they focus on graduates. We need to create more non-graduate routes into this kind of high skill work. Apprenticeships are a huge part of the solution here. Last week was National Apprenticeship Week; hopefully it served to emphasise the benefits apprentices can bring to business. 

At Crossrail, our passion for investing in young people is genuine and runs throughout whole business. Our pre-apprenticeship training, apprenticeship programmes and work placement schemes are creating a new generation of talent not only for Crossrail but for the wider UK construction industry. At TUCA (the Tunnelling and Underground Construction Academy) in Ilford, we have created a centre of excellence in tunnelling skills that will ensure that UK employees are in demand for major infrastructure programmes all over the world. What I have seen of our young apprentices leaves me with no doubt as to how vital they are to the business. They are enthusiastic, loyal and quick to learn. And, being from a technically minded generation, they are better than most at working with the computers and controls needed in tunnelling and construction.

There are so many challenges for young people trying to get into work today. I believe it’s time for the government, employers, schools and colleges to come together and tackle the youth employment challenge head on. If not, the economy risks losing out on the talent and skills of nearly a million young people. If that’s not bad enough, the consequences for young people themselves will be far more serious and long lasting.

The Crossrail shaft at Farringdon. Crossrail has trained a generation of tunnelling experts. Photograph: Getty Images

Valerie Todd is the talent and resources director for Crossrail.

Getty Images.
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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.