How Labour would solve the youth unemployment crisis

The government's approach has utterly failed. We need a revolution in the way businesses, ministers and schools work together to get young people into work.

Today, the government finally admitted the truth. Its Youth Contract has utterly failed to get our young people back to work. The flagship scheme is now on course to miss its target by more than 92% - no wonder there are still almost a million young people out of work. The benefits bill for young people is now more than £3.6bn a year.

Today, Labour says we simply can’t go on like this. The system is broken and its needs to change, and one of those changes has to be a revolution in the way small business, government and schools work together to get our teenagers job-ready. That’s the conclusion of a radical report by Labour’s Youth Jobs Taskforce, led by Alan Buckle, deputy chairman of KPMG, which we publish today.

We asked Alan to spend six months talking to business about just what they can do to help tackle Britain’s youth unemployment crisis. We found some stark conclusions. British business is ashamed of the UK's sky-high youth unemployment – and champing at the bit to help – but all too often the system is getting in the way.

Look at Westfield’s work in east London to make sure Newham residents were first in line for work at the new retail park. Look at the National Grid’s programme to employ young ex-offenders. It’s a scheme that’s helped over 2,000 young people get a job. And look at the way that Labour councils like Liverpool, Sheffield and Manchester are creating Apprenticeship Agencies to forge a new partnership with small business to get young people onto the first rung of the careers ladder.

Businesses small and large want to join forces in tackling this crisis. But the government is letting them down. Our report finds that Britain’s small businesses have all but given up on the Work Programme and the Youth Contract which are respectively, abysmal and anonymous. Even Nick Clegg admits the system isn’t working.

But what the report exposes is that the problem now runs much deeper. Careers services have become all but extinct and young people now lack any independent advice on what skills to develop to land a local job and a local career.

The world of work is changing all the time, yet our young people have no guarantee of independent careers education and guidance at school, and the government has scrapped the right to work experience. No wonder six in ten firms say school and college leavers have not developed the self-management skills they need for work. Education and work are just too far apart and the result is a situation where we have nearly a million young people desperate for work at the same time as  business is reporting skills shortages that are getting worse not better. We can’t go on like this. Our report suggests some big changes.

First, we have to find a new way to harness small business. According to the Federation of Small Businesses, nine out of ten unemployed or inactive people who move into jobs do so with small businesses. So we have to revolutionise the way apprenticeships work for SMEs. Liverpool, Leeds and Sheffield are creating apprenticeship training agencies to make it easy for an SME to say 'yes' to a young apprentice.

Second, it means exploring how small business, government and schools can come together to rebuild Britain’s careers service. Labour pioneers like Manchester City Council are piloting UCAS-style clearing houses for apprenticeships to help small businesses find the recruits they need.

Third, we should look at opening up access to job outcome data for schools, so parents can get a much better idea of how well local schools are preparing their children for the world of work.

Fourth, we have to multiply the ways we bring businesses and schools closer together. At the best primary schools today, pupils are offered 'work discovery' to inspire them about the world of work. That’s especially important for opening male-dominated professions, like engineering, to women. For older pupils, employers should accredit rigorous vocational qualifications as part of our Tech Bacc alongside a work placement. And why not encourage more business people to sit on governing boards? We would give all schools the freedom to innovate with the national curriculum, so they can work with local businesses to tailor courses for local labour market.

Finally, we need to look into ensuring that young people leave school with a plan for their future careers, whether that’s a university, apprenticeship or employment offer. No one should feel undersupported when they move into the working world.

For three years now, this government’s policy has been one effort after another to divide and rule. To find one 'welfare dividing line' after another. When did we ever achieve anything by turning on each other? We have only ever achieved great things when we’ve pulled together. That’s what needs to happen now. We can end the crisis of youth unemployment. Business is up for it. Schools and colleges are up for it. We’re up for it. We just need to get the Conservative Party out the way.

Liam Byrne is shadow work and pensions secretary; Stephen Twigg is shadow education secretary

Two youths sit on a bench in Corby, Northamptonshire. Photograph: Getty Images.

Liam Byrne is shadow work and pensions secretary; Stephen Twigg is shadow education secretary

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What I learnt when my wife and I went to Brexit: the Musical

This week in the media, from laughing as the world order crumbles to what Tristram Hunt got wrong – and Leicester’s big fall.

As my wife and I watched Brexit: the Musical, performed in a tiny theatre above a pub in London’s Little Venice, I thought of the American novelist Lionel Shriver’s comment on Donald Trump’s inauguration: “A sense of humour is going to get us through better than indignation.” It is an entertaining, engaging and amusing show, which makes the point that none of the main actors in the Brexit drama – whether supporters of Leave or Remain – achieved quite what they had intended. The biggest laugh went to the actor playing Boris Johnson (James Sanderson), the wannabe Tory leader who blew his chance. The mere appearance of an overweight man of dishevelled appearance with a mop of blond hair is enough to have the audience rolling in the aisles.

The lesson we should take from Brexit and from Trump’s election is that politicians of all shades, including those who claim to be non-political insurgents, have zero control of events, whether we are talking about immigration, economic growth or the Middle East. We need to tweak Yeats’s lines: the best may lack all conviction but the worst are full not so much of passionate intensity – who knows what Trump or Johnson really believe? – as bumbling incompetence. The sun will still rise in the morning (as
Barack Obama observed when Trump’s win became evident), and multi­national capital will still rule the world. Meanwhile, we may as well enjoy the show.

 

Danger of Donald

Nevertheless, we shouldn’t deny the risks of having incompetents in charge. The biggest concerns Trump’s geopolitical strategy, or rather his lack of one. Great power relations since 1945 have been based on mutual understanding of what each country wants to achieve, of its red lines and national ambitions. The scariest moments come when one leader miscalculates how another will react. Of all figures in recent history, the Soviet leader Nikita Khrushchev, with his flamboyant manner and erratic temperament, was probably the most similar to Trump. In 1962, he thought President Kennedy, inexperienced and idealistic, would tolerate Soviet missiles in Cuba. He was wrong and the world only narrowly avoided nuclear war.

How would Trump respond to a Russian invasion of the Baltic states? Will he recognise Taiwan as an independent country? Will he scrap Obama’s deal with Iran and support a pre-emptive strike against its nuclear ambitions? Nobody knows, probably not even Trump. He seems to think that keeping your options open and your adversaries guessing leads to “great deals”. That may work in business, in which the worst that can happen is that one of your companies goes bankrupt – an outcome of which Americans take a relaxed view. In international relations, the stakes are higher.

 

Right job, wrong time

I rather like Tristram Hunt, who started contributing to the New Statesman during my editorship. He may be the son of a life peer and a protégé of Peter Mandelson, but he is an all-too-rare example of a politician with a hinterland, having written a biography of Engels and a study of the English Civil War and presented successful TV documentaries. In a parallel universe, he could have made an inspirational Labour leader,
a more thoughtful and trustworthy version of Tony Blair.

No doubt, having resigned his Stoke-on-Trent Central seat, he will make a success of his new job as director of the Victoria and Albert Museum. If nothing else, he will learn a little about the arts of management and leadership. But isn’t this the wrong way round? Wouldn’t it be better if people first ran museums or other cultural and public institutions and then carried such experience into parliament and government?

 

Pointless palace

When the Palace of Westminster was largely destroyed by fire in 1834, thousands gathered to enjoy the spectacle. Thomas Carlyle noted that the crowd “whew’d and whistled when the breeze came as if to encourage it” and that “a man sorry I did not anywhere see”.

Now, with MPs reportedly refusing to move out to allow vital renovation work from 2023, we can expect a repeat performance. Given the unpopularity of politicians, public enthusiasm may be even greater than it was two centuries ago. Yet what is going through MPs’ minds is anyone’s guess. Since Theresa May refuses them a vote on Brexit, prefers the Foreign Office’s Lancaster House as the location to deliver her most important speech to date and intends to amend or replace Brussels-originated laws with ministerial orders under “Henry VIII powers”, perhaps they have concluded that there’s no longer much point to the place.

 

As good as it gets

What a difference a year makes. In January 2016, supporters of Leicester City, my home-town team, were beginning to contemplate the unthinkable: that they could win football’s Premier League. Now, five places off the bottom, they contemplate the equally unthinkable idea of relegation.

With the exception of one player, N’Golo Kanté (now at Chelsea), the team is identical to last season’s. So how can this be? The sophisticated, mathematical answer is “regression to the mean”. In a league where money, wages and performance are usually linked rigidly, a team that does much better than you’d predict one season is likely to do much worse the next. I’d suggest something else, though. For those who won last season’s title against such overwhelming odds, life can never be as good again. Anything short of winning the Champions League (in which Leicester have so far flourished) would seem an anti­climax. In the same way, the England cricket team that won the Ashes in 2005 – after the Australians had dominated for 16 years – fell apart almost as soon as its Trafalgar Square parade was over. Beating other international teams wouldn’t have delivered the same adrenalin surge.

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 19 January 2017 issue of the New Statesman, The Trump era