This IPPR report estimates that without further government action there will be an extra 620,000 young people unemployed by the end of the year, with those from the poorest backgrounds and with the lowest qualifications likely to be the worst affected.
There is significant evidence that people below the age of 25 are more likely to be let go by employers and less likely to be hired than older adults during a recession. This could result in a significant spike in youth unemployment (18–24) from its previous level of 410,000.
Youth unemployment has profoundly damaging effects on both the individual and society. Becoming NEET results in a ‘scarring effect’ that lowers long-term employment prospects and earning potential.
Youth unemployment also has significant impacts on both economic growth and public finances. Notably, the University of York estimates that each person NEET for six months or more costs on average £65,000 each in direct lifetime costs to
public finances, and £120,600 in extended lifetime costs to the economy and wider community.
But the impacts of youth unemployment are not just economic. They are also social, psychological and emotional. Studies are clear that unemployment results in significant damage to both physical and mental health.