Youth employment has risen rapidly up the political agenda over the past year. Nearly a million young people aged between 16 and 24 in the UK are now not in education, employment or training (NEET). Much of the debate on why has rightly focused on the complex barriers that can prevent young people from entering work. However, there has been less attention on whether employers are creating enough suitable opportunities for young people to take their first steps into the labour market. Previous Work Foundation research found that starter job vacancies have fallen by 49% over the past decade, leaving just one starter vacancy for every three NEET young people nationally. Our latest research, drawing on a nationally representative survey of 1,001 UK senior business leaders, examines how employers view the youth employment challenge and how their recruitment practices are changing. EMPLOYERS’ UNDERSTANDING Nearly three quarters (73%) of employers say the level of young people who are NEET is a national crisis, while 76% agree employers have a responsibility to do more. The findings also challenge the narrative that young people are failing to meet employers’ expectations. Three in five employers (60%) say 1624-year-olds are generally ready for the world of work, while 73% believe they face greater barriers to entering employment than five years ago. Yet 36% of employers say they have reduced entry-level jobs over the last year. This rises to 48% of mediumsized employers and 46% of large employers, compared with 24% of small firms. These findings suggest that many young people are ready for work but are finding it increasingly difficult to secure a job. EXPERIENCE NEEDED The UK is facing a youth jobs drought and employers have more applicants than jobs available. This means two thirds of employers now prioritise education qualifications (63%) and previous work experience (62%) when recruiting for entry-level roles. Some vacancies will legitimately require particular skills, but the need for previous experience creates a trap. Employers value experience, but many young people cannot gain it when entry-level roles increasingly go to candidates who already have it. In workshops in Morecambe and Liverpool earlier this year, young people told us that ‘no-one is hiring’ and ‘I want the work, but the work does not want me’. While almost three in five employers (59%) offered placements, apprenticeships, internships or work experience over the previous year, supportive practices and restrictive entry requirements continue to coexist. DOUBLE PRESSURE FROM AI Artificial intelligence and automation are adding another layer of complexity for young jobseekers. More than two in five employers (44%) say they have used AI or automated systems to screen applications, while 43% report investing in AI or automation that has reduced entry-level roles. 20 | 60% of employers say 16-24-year-olds are generally ready for the world of work
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