By Richard Johnstone | 18 March 2014
One-third of all young people will either be out of work or trapped in underemployment by 2018 based on current trends, the Local Government Association has warned.
The group today called for councils to be given more local control over skills and training after an analysis found that – of the 2.5 million young people currently struggling to find enough work across England and Wales – only 340,000 are likely to be able to do so over the next four years. Despite the economic recovery, this would leave more than 2.1 million still unemployed or underemployed.
In many large urban areas across the country, as many as two in five young people are unemployed or under-employed at the moment, the report, carried out for the LGA by the Centre for Economic and Social Inclusion, concluded.
Peter Box, chair of the LGA’s economy and transport board, said it was unacceptable that young people could be left behind when the rest of the economy is growing.
In total the government invests £15bn a year in education and back-to-work schemes for young people, the LGA estimated. However, because these schemes are run centrally, councils said they were not able to focus on the needs of employers in local areas.
If the government implemented the LGA’s plan to localise funding and responsibility for back-to-work schemes such as the Work Programme, the number of people out of work could be reduced by 20% and costs cut by £1.25bn.
‘We know that the government is investing a lot to help young people into employment,’ Box said.
‘But councils know the reality of what is happening on the ground and our relationships with local people and businesses could be used much more than it is at the moment.
‘We know how successful local organisations, such as councils, businesses and education providers, can be when working together and we would urge the government to use this to its advantage and give us a say in the schemes that are aiming to get young people into work.’
