This research commissioned from the Institute for Employment Studies (IES) and the Institute for Public Policy Research (IPPR) suggests ambitious job creation targets in the green and clean sector could transform prospects for young people.
The report highlights a combination of regional disparities in access to jobs for young people, a shrinking youth labour market and an unequal recovery, which could result in young people being ill-equipped to meet the future demands of the labour market, further compounding skills shortages currently faced by employers.
The report warns of generational progress grinding to a halt in the UK, with the wage gap between older and younger workers widening since the 2008 financial crisis, and youth employment falling by a quarter of a million since the start of the pandemic.
The pandemic has also seen a large growth in student numbers, with youth participation in full-time education now at its highest rate on record (48%, compared with 43% before the crisis began) with 260 thousand more young people in education and not looking for work than pre crisis levels. These large falls in labour market participation are a key driver in the current difficulties that employers are having in filling entry-level jobs, especially where those roles are not being advertised flexibly (for example in ways that can fit around studies).
The research found that young people are over-represented in sectors that are expected to see lower employment growth in the long term, and vital ‘stepping stone’ mid-skill jobs are declining, with more young people in insecure or part time work.