LONDON — The British Retail Consortium drafted a letter to Prime Minister Keir Starmer urging government action on youth unemployment and is circulating it among its 200 member companies. The letter is scheduled to be published on Wednesday.
Expected signatories of the letter include the chief executives of Marks & Spencer, Primark, Asda, Sainsbury's, Morrisons and Tesco. The letter will state that the "ladder of opportunity for young people is wobbling" and call for a joint retail and government taskforce. The draft letter to Starmer states that such a taskforce would "simplify and enhance regional and national support for youth employment".
The consortium will urge the government to reduce costs associated with employing young people. This is intended to help businesses create more opportunities. The draft letter also calls on Starmer to "ensure employment and skills reforms support, rather than discourage, entry-level recruitment and progression".
A government-commissioned review reported that the number of young people not in work or education in the United Kingdom exceeded one million for the first time in over a decade. Former Labour cabinet minister Alan Milburn authored this review on youth employment, which indicated that youth unemployment costs the United Kingdom more than £125 billion annually. "We are at risk of a lost generation. That is a moral crisis. It has economic consequences." Milburn said.
Following the release of Milburn's review, the government announced the creation of 300,000 new work experience and training placements over three years. These placements will be in sectors including construction, health and social care, and hospitality. The placements are part of a £2.5 billion youth employment support package, which includes hiring bonuses for employers and subsidised jobs for long-term unemployed individuals.
The youth employment support package has received backing from employers such as Manchester Airport, Gatwick Airport, and JD Sports. Simon Wolfson, chief executive of Next, stated that his company currently receives twice as many applicants per retail role compared to two years ago. Wolfson commented on the broader economic context: "Youth unemployment is really a symptom of wider problems with employment in the economy and, of course, if you've got fewer jobs, the people who suffer most are the people with the least experience and that is the youngest." Marks & Spencer launched a six-month training program targeting individuals aged 16 to 24 with no degree requirement. The program will create 1,000 training places across the United Kingdom and Ireland over 18 months.