Fresh analysis shows high underemployment among young
Government figures for youth unemployment fail to highlight the scale of underemployment among 16 to 24 year olds, a report from the Local Government Association (LGA) has warned.
In a fresh analysis of the youth labour market, the report said that while official data shows unemployment among young people is at its lowest level since spring 2011 (between 18 and 20 per cent depending how you slice the figures) the statistics mask a bigger problem.
The research showed that rates including underemployment are much higher affecting two in five young people. This is because the government’s headline statistics do not count young people who are only working part-time hours or who are over-qualified for their current job, the report said.
Of the 2.5 million young people struggling to find enough work across England and Wales, only 340,000 are likely to find more work over the next four years, leaving 2.12 million still unemployed or underemployed, it concluded.
Young people report that they would like to work more but the analysis showed that almost a third of young people's time is unused, which researchers said equates to an additional 2 billion wasted hours a year.
Based on its analysis, the LGA said that a third of all young people will be out of work or trapped in underemployment by 2018 unless local areas are given more control over skills and training.
“We need to listen to the young people that are telling us that they want more work and not let them fly under the radar because of employment statistics that make us think the situation is improving,” said Councillor Peter Box, chairman of the LGA's Economy and Transport Board.
"We know that the government is investing a lot to help young people into employment. But councils know the reality of what is happening on the ground and our relationships with local people and businesses could be used much more than it is at the moment.”
Analysis in the report 'Totalling Hidden Talent: youth unemployment and underemployment in England and Wales' drew on figures from ONS Quarterly Labour Force Survey and was conducted by Centre for Economic and Social Inclusion on behalf of the LGA.