By Jim Knight - 5th February 2010
Over the last 18 months we have experienced the worst global recession in 60 years. The causes of the recession were global, the response had to be global but the effects have been felt by individuals – people have lost jobs, struggled to find work, and this has had a real impact on families and relationships.
I am particularly concerned about the effect of the recession on young people, many of whom may have just left school or university and be looking for work for the first time.
In the highly competitive jobs market it isn’t just education that’s important. Young people need experience, and good references to help them get a foot in the door. Without this help it is all too easy for people to miss out – and previous recessions have shown us the devastating impact that can have.
This government refuses to write anyone off, and has taken action to ensure young people do not suffer from lack of opportunity. There are currently 927,000 young people identified as unemployed by the International Labour Organisation. In terms of rate, this is lower than the EU average, and that of France and Spain. This number includes 250,000 18-24 year olds who are studying full time and looking for a couple of hours per week paid work to supplement their income.
As a proportion of all young people, some nine per cent are unemployed and not in full-time education – compared with 13 per cent in the 1990s recession and 12 per cent in the 1980s. And long-term youth unemployment now is under a tenth of the level in previous recessions.
This is no accident. The action this government has taken has supported people through the recession, cushioning the effects and taking some of the sting out of the global downturn. This government has led the international response to the recession, which has helped save between seven and 11 million jobs worldwide. Today there are 450,000 fewer unemployed people in the UK than experts were predicting there would be at the time of the last Budget – saving the taxpayer some £2bn.
This government has guaranteed every single 18-24 year old a job, training or work experience if they have been unemployed for six months, providing interesting and challenging opportunities for the UK’s talented and enthusiastic young people.
We are investing £1bn in helping young jobseekers, creating 470,000 jobs, work experience, training and apprenticeships. This includes 120,000 new jobs for young people under the Future Jobs Fund. And it is in addition to a guaranteed place in education or training for all 16-17 year olds.
Last month, the number of young people claiming Jobseeker’s Allowance fell by 7,600. In spite of the recession, around 60 per cent of new claimants aged 18-24 leave Jobseeker’s Allowance within three months, and over 75 per cent within six months – quicker than older age groups.
But we can’t risk the recovery. This government, unlike those in previous recessions, does not believe unemployment is a price worth paying. That is why this government is continuing to invest in jobs and in our nation’s recovery
Dods Parliamentary Communications Ltd