Skyrocketing migrant workforce leaves nearly a million young British citizens idle, cautions research institute
The Centre for Social Justice (CSJ) has published a report this week, highlighting the alarming rise in the number of young Britons classified as Not in Education, Employment, or Training (NEETs). With nearly one million 16-24 year-olds falling into this category, the CSJ argues that British youngsters are being "squeezed out" of the labour market.
According to the report, the number of NEETs has increased by almost 200,000 since before the pandemic, reaching 948,000. One in eight young people is now a NEET, with over 250,000 of them economically inactive due to health issues. The rise in claims for conditions such as anxiety and depression, reaching 128,000, has been particularly sharp.
The CSJ proposes a new solution to tackle this issue: a "future workforce credit," a wage subsidy that would cover 30% of a NEET's salary for six months. This scheme, backed by former Labour home secretary Lord Blunkett and former Conservative chancellor Sir Jeremy Hunt, is projected to help 120,000 young people into work.
However, such a proposal has yet to gain significant support from international organisations or high-ranking politicians. As of December 2023, there is no known international organisation or government that has explicitly and publicly advocated for a wage subsidy system for NEETs in the proposed amount and duration.
While the idea of wage subsidies for disadvantaged groups is discussed by scientific institutions and economic think tanks, it is not widely promoted in the political mainstream. Similarly, political parties in Europe, such as the SPD, GRÜNE, CDU, and FDP in Germany, address the integration of young people into the job market but tend to focus on other instruments.
The European Union and OECD are working on youth employment programs, but not with targeted wage subsidy systems. High-ranking politicians, such as Ursula von der Leyen (EU-Commission) and Nicolas Schmit (EU-Commissioner for Employment and Social Rights), support such programs but not wage subsidies for NEETs in the proposed format.
In the UK, the Treasury has warned that sickness benefit claims could cost £100 billion annually by 2030 if left unchecked. The rise in NEETs could contribute to this growing burden on the welfare system. The Prime Minister, Keir Starmer, is facing mounting pressure over youth unemployment and the cost of welfare.
As the debate over NEETs and youth unemployment continues, the proposed wage subsidy remains a contentious issue. While it has yet to gain widespread support, the CSJ's report underscores the urgent need for action to address the rising number of NEETs and support the next generation into the workforce.
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