Worrying figures on the employment front have emerged with the UK unemployment rate rising to 5.1% in the three months to October — the highest rate since January 2021.
The figures from the Office for National Statistics display an increasing trend in unemployment, up from 4.3% last year, particularly among younger workers (18-24) where an increase of 85,000 has been seen in the three month period.
For many employers, uncertainty about the Chancellor’s November Budget led to caution in the labour market, with many holding off taking on staff. National Insurance increases that made hiring more expensive have also been blamed for the 149,000 drop in those in employment during this period.
Responding to the ONS figures, Secretary of State for Work and Pensions Pat McFadden said the data “underline the scale of the challenge we’ve inherited”.
“That is why we are investing £1.5bn to deliver 50,000 apprenticeships and 350,000 new workplace opportunities for young people – giving them real experience and a foot in the door.”
Last week the Government unveiled its £725 million package of reforms to the apprenticeship system that aims to tackle youth unemployment and drive economic growth. Around 50,000 more young people are estimated to be likely to benefit from apprenticeships over the next three years, including in sectors such as retail and hospitality..
The latest funding includes a £140 million for a pilot where Mayors will be able to connect young people with apprenticeships with local employers – especially those young adults not currently in education, employment or training.
So what’s in it for employers? The new package sees the government pledge to cover the full cost of apprenticeships for eligible young people under 25 at small and medium-sized businesses. Removing the 5% co-investment rate for SME’s means that the training costs for all eligible under 25 apprentices are fully funded, potentially opening up thousands of opportunities for young people and the businesses willing to take them under their wing.
