New analysis from the Institute for Public Policy Research shows that unemployment among black and mixed ethnic groups aged between 16 and 24 is higher than for any other groups. Based on the latest Labour Force Survey data, unemployment among black young people now stands at an extraordinary 48%, a 13 percentage point increase since the recession and well over twice the level of unemployment among white young people, at 20%.
Today’s unemployment figures will be hailed as signalling the ‘green shoots’ of recovery, with the news of a fall of 7,000 to 2.46 million. But we don’t yet know whether this will be sustained over the next year or so. And with unemployment among young people at a 15-year high, fears of a generation ‘lost’ to unemployment are still very real.
Our findings show that young people with few qualifications and those from ethnic minority backgrounds are more likely than others to form part of this lost generation. This simply reflects long-standing patterns of disadvantage. In the decade to 2007, vast inequality based on geography, class and race persisted beneath strong growth and low unemployment at national level.
It is no surprise that the regions worst hit by the recession are those that were already deprived. Similarly, the sectors school leavers are so reliant on, such as manufacturing, have seen existing declines exacerbated by the economic crisis.
The big question is: what should be done to tackle unemployment for those young people worst hit? The current economic and political climate can make this a difficult conversation to have. In the run up to an election, race and class are back on the agenda. As fear of rising national debt intensifies, the politics of the cash register are spilling over into social tensions about who ‘deserves’ support from limited coffers.
Concerns about increasing BNP support have prompted wider reflection on the issues facing the white working classes. Recognition that class and race are not separate issues for example has led to Communities Secretary John Denham to respond with calls to ‘target class, not race’.
But despite the emergence of a highly-charged debate, the fundamental argument for tackling inequality has still not been won. Recent political interest in breaking down class barriers has focused on social mobility. But the ability of more working-class children to access top professions will not address the low pay and economic insecurity that persist in many job sectors – just as the rise of the black and Asian middle classes has not improved the position of working-class ethnic minorities.
Against this backdrop, crisis measures should support all disadvantaged young people and be targeted where they are most needed. Extra Future Jobs Fund places for example could be targeted at deprived areas, such as those receiving Working Neighbourhood Funding. This could be funded by the predicted under-spend as a result of lower than expected unemployment to keep young people most at risk of long-term unemployment close to the labour market and developing new skills.
These are short-term measures to reduce the impact of the recession. As the economy picks up, however, the most difficult challenge facing policymakers will be to ensure that, in future, rewards and opportunities are more equally distributed among all young people.
Tess Lanning is a researcher at the Institute for Public Policy Research
