Youth Unemployment | Unemployment | Poverty & Homelessness

1. Discuss whether the UK government could do more to reduce youth unemployment.

This paper will assess the policies of the UK Government to combat Youth Unemployment and will suggest alternative methods or improvements to the present measures. According to MacMillan (1986) Unemployment is defined as “The stock of all those individuals who are not in employment and who are either in the process of moving to a new job or who are unable to find work at the prevailing real wage rate” and the category of unemployment that this essay will focus on is youth unemployment or NEETS “Not in education, employment ,or training” aged 16-24. The Neets acronym has been born in 1990 from the need to classify the group of young people that require help in order to integrate in the economical society.(Smith, 2007) Before assessing the government actions it is essential to understand the economic and social importance of lowering the levels of youth unemployment. Firstly, we will analyse the importance of combating youth unemployment from an economical perspective. Leitch in Smith (2007) points out that it is essential for the Government to invest in education and in measures to lower the level of youth unemployment in order for our economy to become more competitive at an international and national level. Also the review of Sub-National Economic Development and Regeneration(Smith, 2007) share the same point of view as Leitch and highlights the role of the Government in equipping the new generation with the set of skills and the knowledge that will help them to get the most out of this dynamic economic environment that is been offered through globalisation. Smith, J. (2007) suggest that the effect of long-term youth unemployment will be seen in the future, the human capital will not be prepared enough and this will cause the productivity to fall. Bosworth, D. et all (1996) also argue that the youth unemployment could lead to a waste of human potential and the stock of human capital will erode. Losing the capacity of the future generation will lead to a low level of production, income inequality and the well-being of the society will also fall together with the national income. Secondly, from a social perspective jobs are needed in order for the younger generation to put the base for the future families, also leisure , hobbies and all activities are sustain through work(McRae, 1987). The need for income is evident, but if the youth unemployment level is high we will not only have a negative effect on our economy but also in our society, according to Bosworth et all (1996) the crime rate, the suicide rate will increase and the youth will have an antisocial behavior. But if youth unemployment is maintained under control the teenager pregnancy will fall and the younger generation will be more educated and healthy. For all these reasons the Government should take measures to prevent youth unemployment because it is clear that this could have a negative effect on the economy and on the society of a country. Furthermore we will focus on the measures and policies that the Government uses to tackle this issue. Provided with all those benefits that will be brought by reducing Neet level , the Government set three important policies ,the first one is “Raising Expectations: staying in education and training post-16.”(Smith, 2007). The objective as Smith, J. (2007) shows is to lower the level of Neet until 2013 and by 2015 to have all young people in education or training. In order to accomplish this, the Government will make mandatory the participation in education or training until 17 years from 2013 and from 2015 until 18 years, those who move into employment at an early age will still have to engage in an apprenticeship scheme at least 280 hours per year(Smith, 2007). This policy will offer multiple choices of shaping and developing the education of the young people as Smith, J. (2007) shows, the Government

000 government-funded work experience places and construct 24 new university technical colleges(Shepherd. Also The Department for Schools and families and The Department for Work and Pensions will help them to have a smother transitions from education and training to work (Smith. 2007). Moreover. (2011) We can clearly see that almost 1 million young people are unemployed and this figure can surely question the effectiveness of the policies applied. J. to show that more could be done to solve this issue we compare the level of NEET from United Kingdom and Austria. F(2010) the Vocational education and . Wallop . 2007). 2007). Although the Government blames the Global economic crisis evidence exists that more could be done to lower the level of Neet.3 per cent Office for National Statistics . Youth Unemployment 2003 2004 2005 11% 7% 11% 10% 12% 10% Time United Kingdo m Austria 2000 12% 5% 2001 10% 6% 2002 11% 6% 2006 14% 9% 2007 14% 9% 2008 14% 8% 2009 19% 10% World Databank (2011) As the table above shows the Austrian Government has managed to keep a relatively low level of youth unemployment. As we listed the measures taken by the Government to lower the level of youth unemployment we would further analyse the effectiveness of those policies. hence the investment in education and jobs creation must rise. thus the education system must be improved. also according to Osborne the Government will offer 50.introduced: Diplomas. the Government criticize firms because of their unwillingness to provide more jobs and training schemes for younger people but according to British Chambers of Commerce (2009) firms answer to this accusation is that the gap between the skills that are need for jobs and the skills that the younger generation have is too big. The third measure that the Government is using to combat Neet is Education Maintenance Allowances (EMAs) which help households with low income to support their children education (Smith. The Local Government White Paper will strengthen the Client Caseload Information system (CCIS) in order for them to track those who are Neet or are on the verge of becoming one. Foundation Learning Tier that is being developed in order to replace the old qualification system. (2007) shows in Neets this policy will improve the personal advice and information service in order for the younger generation to choose the education or training path that suits them best. GCSE and access to the International Baccalaureate.As Smith. Youth unemployment level (aged 16-24) 991000 21. Secondly. The second policy adopted by the Government is The Local Government White Paper which offers more power to local authorities in order to achieve a better collaboration between the private sector and the public sector(Smith. also the Government put a new requirement for those who leave school as they now must notify the Connexions Services (Smith. (2011) and British Chambers of Commerce (2009) reinforce the numbers shown by the Office for National Statistics on the level of youth unemployment in United Kingdom. According to Lechner. the number of jobs that are vacant is small relatively to the demand for jobs.000 apprenticeships .2011). A levels. Firstly.100. J. 2007). H.

D.pp.thus the incentive to offer training an apprenticeships is greater. London: Pearson Education Limited .Budget 2011: Osborne targets youth unemployment. • McRae . J. • British Chambers of Commerce (2008). • Shepherd . pp.thus to lower the level of youth unemployment.H.2011] British Chambers of Commerce (2009).ons.2010. S. MacMillan Dictionary of Modern Economics . F. D.pp. (2011). The Economics of the Labour Market. Summary of labour market statistics. LIVING IN SOCIETY. Brickell & Son Ltd. Young And Jobless: The Social and Personal Consequences of Long-term youth unemployment. Great Britain : T.2011] • McRae . The MacMillan Press LTD. In: McRae.britishchambers.pdf [Accessed :23. provided with all these measures the Government could do more to improve his policies .Available at: http://www. In: Bosworth. Also support like lower secondary school is offered for those with disabilities and learning difficulties in order to help them to reintegrate in the labor market( [Accessed :20. Available at: http://www. Budget 2011.Youth Unemployment Policy Brief . et hence the British Government should adopt them alongside the current policies. EEO Review: Youth Employment Measures. Employees whose apprentices pass test with good marks will get a bigger subside . pp. F.britishchambers. Great Britain : T.html? newquery=Summary+of+labour+market+statistics [Accessed: 23. • Office for National Statistics . . 131-137. thus they have more opportunities to realise and choose what they want to do. Chapter 28. News. (1996).2011] Lechner. et all. Lost Talent .1987.11.(1987). (1986) D. 1-5. F 2010).11. . In: in Austria offers different choices for young people at different moment in their education and training. et all. Available at: • • • .11. 1-9. Brickell & Son Ltd.Not in Education. (2010) argues. (2011). (2010). The apprenticeship system is very good as Lechner. London. S. In conclusion. Available at: http://www. Young And Jobless: The Social and Personal Consequences of Long-term youth unemployment.3rd Ed. Available at: www. there are a variety of subsides to companies which offers apprenticeships and training. UNEMPLOYMENT.1987. S. All these measures have a much more effectiveness .uk [ Accessed : 20. Employment or Training .11.(1987). Found on The Guardian. UK news . References: • Bosworth .net/resources/reviews/NationalArticles/Austria-YMRvw2010.European Employment Observatory.. QUALIFICATIONS AND TRAINING.H.2011] Pearce. 45-50. S.

uk/finance/economics/8328869/Youthunemployment-hits-record.Finance . Economics. (2011). youth total (% of total labor force ages 15-24). Available at: http://databank.telegraph. (2007).2011] .2011] • Wallop .2011] • [Accessed : 20. World Databank.Compilation derived from: World Development Indicators & Global Development Finance: United Kingdom.worldbank. H. Found on The Telegraph . Available at: http://www. • World Databank (2011). The World Bank. 2000-2009.html [Accessed on 20. Strategy: Raising the participation age . an opportunity for all?.co. Unemployment. Youth unemployment hits [Accessed : Centre for local economics strategies.

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