Forgotten Youth? Jobs and skills for a new generation

26 September 2011, Labour Party conference

Chair: IPPR

Panel:

David Lammy MP

Stephen Uden, Microsoft, head of skills

Katja Hall, CBI, chief policy director

Andy Burnham MP, shadow secretary of state for education

Katja opened her statement by highlighting youth unemployment as the biggest challenge facing the post-recession labour market. During the recession many employers managed to keep jobs on but this makes it harder for young people to find jobs in the longer term. This is not just a cyclical problem, she said.

The areas of focus for concern highlighted by Katja included:

  • Education – young people are three times more likely to be unemployed if qualified to GSCE level only or below. Social background also has a strong influence on levels of education
  • Welfare system – increasingly seeing levels of multigenerational deprivation which is a concern.
  • Better understanding of how the labour market is changing. Demand for skilled jobs is increasing, especially for technical and STEM skills.

Some solutions suggested by Katja included:

  • Employers need to offer more apprenticeships. There are some barriers still especially for SMEs however.
  • Improved links between educational establishments and employers/private sector
  • More scope for businesses to get involved in schools with a special focus on early years’ education.
  • Greater incentives for the labour market to higher people – there was some discussion over the minimum wage and its impact on youth unemployment

Stephen Uden of Microsoft highlighted that youth unemployment is a problem around the developed world. Germany was cited as the exception with their system based on vocational training and getting young people into jobs.

He talked about the approach Microsoft has taken to launching apprenticeships for IT which starts with a low entry level progressing to level 3. He did highlight that this still does not manage to catch all young people however.

He talked about the possibility of pre-apprenticeship programmes for those who do not have GSCE level. He also warned about the risk of damaging the apprenticeship brand by misusing the title for programmes that aren’t apprenticeships, for example six week training courses. He also quoted a recent AoC report about the lack of knowledge of vocational options available by young people and highlighted the need to get young people connecting with employers at school level.

He believes that some young people are not achieving because of a lack of purpose – they can’t see where their future is heading. This provides a challenge to both schools and employers to ensure that young people are aware of the options. He stated that there is also a role for government to set the scene and encourage this to happen.

David Lammy MP opened with his fear and the fact that he is deeply depressed about the prospects for young people, particularly in relation to the recent events in his constituency of Tottenham. He recalled the YTS programme of the 1980s and its long term negative impact on the young people today who are the children of YTS trainees. He stated that there is an atmosphere of hopelessness and fecklessness across the UK.

He stated that the volume of apprenticeships is necessary but that the issue of quality is always a concern. He mentioned his concern about the cuts to the Education Maintenance Allowance (EMA) and increased fees in higher education.

He stated that some communities are facing unemployment levels of 40 – 50 per cent with a generation of young people who are not prepared to work several jobs as their parents often did. He also believes that there should be more quality programmes in FE and stated his concern that many politicians will not act on this.

In response to questions from the audience regarding concerns between parallels between apprenticeships and the former Train to Gain programme, and the lack of resource in Information, Advice and Guidance generated further discussion.

Stephen agreed that there is some bureaucracy behind apprenticeships but that checks and balances are required. He mentioned the importance of organisations acting on behalf of groups of employers such as sector skills councils which can help SMEs in locating apprentices and starting up their own programmes.

Katja reiterated the importance of technical skills in creative industries as a growth area and the problems with the quality of teaching of skills such as IT in schools. She also voiced CBIs concern on a lack of careers advice and the gap between employers setting out what they want in terms of skills and competencies and getting this information to young people.

David Lammy spoke about Connexions programme of the past and lamented that school teachers aren’t necessarily the right people to deliver careers advice. He mentioned that many middle class children are also discouraged from a vocational path by their parents.

Andy Burnham MP joined the event at this point and spoke about the vacuum of young people who have no interest in university but are unsure of their path after finishing school. He stated that the findings of the 2006 Tomlinson Report were a major missed opportunity for the last Labour Government.

He stated that people understand the university route and that clarification is needed on the profile and structure of the vocational route including apprenticeships and what employers are looking for.