Tag: young workers

TUC: National jobs guarantee can help “turn the tide” on youth employment prospects

  • Challenges in jobs market have been “long in the making”, says TUC – as it calls for ambitious policy response
  • The number of payrolled employees has fallen by 127,000 over the past year, but the pace of recent falls has slowed.
  • The employment rate rose slightly to 75.2% from 75.1%. The unemployment rate has risen to 4.7% from 4.6%, but this is offset by welcome falls in the inactivity rate to 21.1% from 21.4%.
  • Youth unemployment is falling and is now 11.6%, down compared to the same period last year (13.3%)
  • Real wages grew by 1.2% but real and nominal pay growth are both slowing

Commenting on the latest labour market data, which show some tentative improvements alongside ongoing challenges, TUC General Secretary Paul Nowak said: “Fragilities in the jobs market have been long in the making and are another toxic Tory legacy.  

“But there are some positive signs. It is welcome that both economic inactivity and youth unemployment are down.

“And the government has started to lay the foundations to reset our economy with significant investment in public services, stronger workers’ rights and improving the support people need to get into work. 

“But the government must build on this with a national jobs guarantee for young people. There are still too many young people stuck out of work, education and training.

“We know that real experience of paid work is the best way to turn the tide on long-term worklessness – and that over time this investment will more than pay for itself.”

  • TUC calls for a national jobs guarantee for young people to build on the government’s Youth Guarantee.
  • NEW analysis reveals that supporting 300,000 young people through the scheme would pay for itself within a decade and deliver over £8bn of benefits in the years after – at a cost benefit ratio of 2.8 to 1.
  • Young people let down by 14 years of toxic Tory rule in urgent need of decisive action, TUC says. 

On Wednesday, the TUC called for an ambitious national jobs guarantee for young people currently not in education, employment or training (NEETs).  

The UK faces a growing crisis in young people’s labour market participation which spiralled under the Conservatives, the TUC warns. 

The TUC says this not only has damaging consequences for young people’s prospects – but for the country as a whole.

The government has “laid the foundations” to turn this around – starting with a youth guarantee programme to ensure every young person aged 18-21 has access to learning, an apprenticeship or support to find a job, which is being trialled in regions up and down the country. 

The TUC says this should be built on with a national jobs guarantee, which prioritises young people aged 18-24 who have been not in employment, education or training (NEET) for six months or longer and young people aged 18-24 who are at high risk of becoming long-term NEET.

This would offer young people experience of a real good quality job with a real wage; opportunities to gain new skills; and an employer reference – “game changing” factors for young people approaching the labour market.

National jobs guarantee 

While a national jobs guarantee would need upfront investment, TUC modelling estimates that in the long term the cost-benefit ratio would be 2.81, with the scheme paying for itself within a decade. 

Setting out potential options for a national jobs guarantee for young people:

  • 100,000 placements in a 2-year period would cost £1.03bn but return £2.9bn.
  • 200,000 placements in a 2-year period would cost £2.06 bn but return £5.8bn.
  • 300,000 placements in a 2-year period would cost £3.1bn but return £8.7bn

The TUC says the national jobs guarantee must be designed to promote good work including by:

  • Being paid decently, either at the national minimum wage or union negotiated rate for the job
  • Meeting local labour market needs with additional roles – so that money is only used to create jobs that would not have been created in the absence of a scheme, ensuring jobs guarantee participants don’t replace existing workers.
  • Delivering quality training that puts workers on a pathway to a Level 3 qualification and ensure the worker gets experience that will enable them to move into permanent work.
  • Being sustainable, so that the placement could transition into an apprenticeship, or with a guaranteed job interview at the end.
  • Ensuring quality work which adheres to health and safety law, is accessible and promotes equality, has clear minimum standards for quality and access to a union. 

The placements should be allocated proportionately across regions, so there are a greater number of placements in areas where young people face the highest risk of becoming NEET. 

Tory legacy 

The TUC says the Conservatives failed to support young people throughout the pandemic and ever since, leading to a sharp rise in the number of young people out of work, training and education   – leaving yet another toxic Tory legacy for this government to deal with.

Almost a million young people aged 16-24 in the UK are currently not in education, employment or training (NEET), with the total reaching 948,000 in August 2025 – up from 800,000 in 2019.

The TUC says that overall disabled young people are the most affected by this crisis as they’re far more likely to be NEET (28.6%) compared to non-disabled young people (7.1%). 

TUC analysis also shows that there is a growing number of young people who are being failed by unsupported or poorly designed opportunities. 

Analysis of destination data for 16–18-year-olds who left education in 2022-23 found that a year later 14.8% of them had entered work, education or training but had not completed or continued it. This is up from 12.9% in 2017-18– and is far higher for those on free school meals at 26.8% and SEN young people at 25.9% in 2022-23. The TUC says this shows the need for high quality support in education and workplaces.

Another example of the toxic Tory legacy is the proportion of young women and men who have become NEET since the pandemic.

Overall, while rates among both groups have been growing, young men (from 11.8% in April – June 2019 to 13.1% in April – June 2025) are more likely to be NEET than young women (from 11.3% in April – June 2019 to 12.4% in April – June 2025). Young women however are more likely than young men to be economically inactive – not working nor looking for a job. 

Other risk factors identified by the TUC include: 

  • Having a below a Level 2 qualification. This is significant as, according to TUC analysis, 30.9% of 24-year-olds do not have Level 2 English and Maths qualification.
  • Having unpaid caring responsibilities

The TUC says the government should build on the positive progress in its Make Work Pay agenda to make sure more good jobs and training opportunities are accessible to all young people, particularly disabled young people and young women with caring responsibilities.

TUC General Secretary Paul Nowak said: “Under the Conservatives, young people were failed with many let down by the education system and stuck out of work, education and training.

“This toxic Tory legacy has hugely damaged young people’s prospects – and for the country as a whole too. 

“With the youth guarantee, stronger employment rights, an industrial strategy and apprenticeship reforms, the government has started to turn this around. 

“It’s now time for ministers to build on this progress with a national jobs guarantee for young people. We know that real experience of paid work is the best way to turn the tide on rising rates of worklessness – and that over time this investment will more than pay for itself.

“Young people across the country need access to high-quality training and decent, well-paid work – boosting their prospects and the wider economy as a whole.” 

Starmer warned not to ‘betray’ young workers over wage discrimination

Young people are in spiralling debt after years of “wage discrimination” according to a new report from Scotland’s largest trade union body. 

The STUC report: ‘Young Workers Won’t Wait’ reveals how, because of low youth rates,  66% of respondents said they were in debt with debt levels in the region of £3,000 – £10,000, whilst only 46% said they could always afford the basics in life, such as food, transport and bills.

The UK’s Minimum Wage (the ‘National Living Wage’) laws allow workers to be paid less based on their age, even if their job, skills, and experience match those of colleagues, a move STUC General Secretary Roz Foyer called “abundantly discriminatory”.

While the minimum wage for workers over 21 is £12.21 it is £10 for workers aged 18-20 and £7.55 for workers aged 16 and 17.

Testimony submitted to the STUC outlined the experience of young workers working full-time for less pay when compared to other colleagues doing the same role.

One respondent noted: “I regularly worked 40-45 hours per week… and did not pursue further education opportunities as I could not afford to do so.

“It was very frustrating to be paid less that my colleagues when I was under 21 as I was doing the same work as them, worse hours, and with no additional responsibilities.”

Ms Foyer also warned the Prime Minister not to “betray” young workers after his promises during the general election to abolish youth rates of pay.

Commenting, STUC General Secretary Roz Foyer, said: “Our report highlights the impact of the abundantly discriminatory rates of pay for young workers. Working alongside colleagues doing the exact same job should result in the exact same pay.

“Age should not define your worth or wage. With 66% of respondents saying they’re in eye watering debt – some as much as £10,000 – resultant from poor pay, it’s clear that discriminatory wage rates are trapping young people into poverty.

“Our message to the Prime Minister is clear: do not betray our young people. During the election, the Labour UK Government made the pledge to abolish youth rates of pay. It’s high time they paid up for young people and gave them a proper pay rise worthy of their work.”

Testimony heard further by the STUC outlined the account of Niamh, a previous retail worker who experienced youth rates of pay:

“Previous to this job, I worked many roles whilst studying at university where age discrimination in pay was prevalent. I was expected to do the exact same job and had the same responsibilities as other members of staff but was paid less simply because of my age.

“I do believe that this is one of the reasons I landed myself in debt as I was working as many hours a week as I could around my studies but was still unable to afford many things.

“I still had rent to pay, bills to be covered and food to put on the table like every other employee but because of my age, I was paid less and likely then struggled more because of this.”

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Access the full report ‘Young Workers Won’t Wait’ here: https://www.stuc.org.uk/resources/young-workers-wont-wait-stuc-report-into-minimum-wage-discrimination-with-front-cover.pdf 

Tags: youth committee young members Wages

TUC: Young people’s futures on the line as toxic Tory legacy sees youth unemployment rise

  • Youth unemployment rate hits 13.3%, up 1.4 percentage points on the quarter
  • Vacancies have fallen for the last 26 months (down 42,000 on the quarter) 
  • While LFS data suggests employment is rising, HMRC data suggests that payrolled employees are falling
  • Real wages finally return to 2008 level, but there is much lost ground still to make up

Responding to today’s labour market data, which show ongoing weakness in the labour market including rising youth unemployment, TUC General Secretary Paul Nowak said: “Working people are still facing major problems left behind by the Conservatives. 

“Vacancies have been falling for more than two years. Millions of workers are in insecure jobs and without proper employment rights. And young people’s futures are on the line as youth unemployment rises.

“Most employers support the new government’s plans to make work pay and strengthen workers’ rights. It’s time to move on from the low-pay, low-rights approach that has failed so many people so badly.”

A New Deal for young workers?

New TUC analysis for our 2024 Young Workers Conference shows that more than 700,000 workers aged 18-20 across the UK are set to be left out of pocket as they are paid a lower rate of the minimum wage (writes TUC’s ALICE ARKWRIGHT).

On 1 April, the National Living Wage will go up to £11.44 per hour and be extended to workers aged 21 and over. But workers under 21 will still be paid less for the same work, simply because of their age and as many as seven in ten workers aged 18-20 could lose out. 

Over 700,000 18-20 year olds are paid less than this rate and they miss out on a huge £2,438 per year, or £47 per week, at a time when the cost of living is still sky high. This is completely unfair.  

Young workers have been let down time and time again by this Tory government.  

They have entered the labour market at a time when insecure work has exploded. Insecure work is characterised by low pay, less training and development, uncertainty in hours and fewer employment rights.    

16-24 year olds are over five times more likely to be on a zero hours contract than workers aged 25 and over.  

Despite only making up 11 per cent of the total workforce, young workers make up 40 per cent of the 1.18 million workers employed on a zero hours contract. 

And young women and young BME workers are more likely to be on them. 

Some young workers are not even being paid – a quick search of recruitment sites finds multiple internship adverts with no mention of pay, including one asking for 3 years’ experience.  

And three quarters of employees aged 16-24 miss out on key employment rights that most of us take for granted, such as protection from unfair dismissal and the right to statutory redundancy pay.   

Imagine working hard in a job for nearly two years – only to be let go with no recourse.   

Young people are always hit hardest during times of uncertainty, which they’ve faced time and time again in the last 14 years. Youth unemployment rose dramatically after the financial crisis and more recently during the pandemic. And we are seeing it rise again. The unemployment rate is highest for young BME and young disabled workers. 

A lack of decent work, training opportunities including good quality apprenticeships and careers services are keeping unemployment rates higher than they need to be and increases the risk of longer-term unemployment, which has significant scarring effects on young people’s future living standards and wellbeing. 

Since 2016/17 there has been a 37 per cent fall in the number of under 19s starting an apprenticeship. Many young people are put off them by the high incidence of low pay, low quality training and poor employment conditions. 

Every day we hear stories about sexual harassment in our workplaces. 2 in 3 young women have experienced harassment at work and they are particularly at risk of harassment from third parties such as clients, customers and patients.  

Last year, ministers promised to bring in a new law to put the onus on employers to keep their staff safe from this type of abuse. 

But instead, they buckled to Tory backbenchers, massively watered down the legislation and let down young women across the country. 

Alongside this failure to protect workers, this government have also introduced new anti-strike laws which mean a generation of young people could lose their right to strike.  

We must give young people a good start at working life. 

Labour’s New Deal for Working People stands in stark contrast to the Conservatives’ dire record on workers’ rights. It would: 

  • Ban zero-hours contracts to help end the scourge of insecure work.  
  • Ensure all workers get reasonable notice of any change in shifts or working time  
  • Give all workers day one rights on the job, scrapping qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave for all workers.  
  • Remove the discriminatory age bands from the minimum wage to ensure every adult worker benefits from fair pay.  
  • Ban unpaid internships; and  
  • Require employers to ensure workplaces are free from harassment, including by third parties. 

And Labour have committed to reform the National Careers Service and the failed Apprenticeships Levy into a ‘Growth and Skills Levy’ that works across all nations and regions. 

At Young Workers Conference, members from across our movement will debate what a better future for young people looks like and the need for this transformative New Deal. 

Young people urged to apply for Job Start Payment

Social media campaign kicks-off for benefit to 16 – 24 year olds

Social Justice Secretary Shona Robison has urged eligible young people to apply for Job Start Payment if they are starting a new job after a period of unemployment.

Eligible 16-24 year olds, who have been on certain benefits for six months or more, can apply for the one-off payment worth £252.50, or £404 if the applicant has children. The payment will help with the costs of starting a job including travel, new clothes or childcare.

Ms Robison visited Remploy’s offices in Dundee to meet hairdresser Mystialeigh Smith who recently used the payment to buy work clothes and travel.

Ms Robison said: “We want to give our young people all the support they need when they start work including making sure the costs associated with taking up a job don’t get in the way. We know lockdown has impacted job opportunities for many young people and getting money to those who need it is our priority.

“Access to this support is a right, and we are ensuring people receive all the financial support that they are entitled to.

“It is great to see organisations across the private and public sector highlighting the availability of Job Start Payment to their new employees. I strongly encourage all eligible young people who have recently started a new job or are about to start a new job to apply now.”

Peter Craig, Contracts Director at Remploy said: “The pandemic has had a major impact on the lives of our service users across Scotland.

“The Job Start Payment will be invaluable to young people accepting a job, helping them with any associated costs such as travel or childcare.”

Mystialeigh Smith 17, from Dundee, an apprentice hairdresser at Macintyres hairdressers who accessed Job Start Payment, said:

“Upon gaining employment my keyworker advised me to apply for the Job Start Payment on the social security website. It took roughly two weeks to go into my bank and it helped me buy work clothes and travel until I received my first pay.”

People can apply for Job Start Payment for up to three months after their start date.

You can find out more and apply through mygov.scot or by calling 0800 182 2222.

Young workers bearing the brunt of job losses, says TUC

  • New TUC analysis of official statistics shows BME youth unemployment rate has increased at twice the speed of young white workers during the pandemic 
  • Union body calls on ministers to create good new jobs, extend and widen Kickstart scheme and boost universal credit 

The unemployment rate for young black and minority ethnic (BME) workers has risen at more than twice the speed of the unemployment rate for young white workers, according to new TUC analysis. 

The analysis of ONS figures reveals that the unemployment rate for young BME people aged 16-24 years old soared from 18.2% to 27.3% between the final quarter of 2019 and the final quarter of 2020. This is a 50% increase in the rate over the period, and a rise of 9ppts. 

Over the same period the unemployment rate for young white workers rose from 10.1% to 12.4% – an increase of 22% of the original rate, or 2.3 percentage points. 

These unemployment figures measure the proportion of young people who want to work who are in a job, and do not include young people who are inactive such as students. They tell us that BME young people who choose to work, rather than study, have a more difficult time in the labour market than their white peers. 

Youth unemployment 

Previous TUC analysis found that young workers generally have suffered a bigger hit to their job prospects than any other age group. 

More young workers were made redundant during summer 2020 than in all of 2019. And the number of pay-rolled employees aged under 25 fell by 437,000 between February 2020 and February 2021. This accounts for 63% of the nearly 700,000 payroll jobs lost over the pandemic. 

The TUC says this is largely the result of Covid-19 hitting sectors of the economy where young people tend to work, such as accommodation and food services. 

But the union body is concerned that the disproportionate effect on young BME people is further evidence of racism within the labour market. 

Government action needed now 

The TUC is calling on the government to: 

  • Create good new jobs. We could create 1.8 million new jobs in the next two years in green transport and infrastructure, and by unlocking public sector vacancies. 
  • Improve and extend the Kickstart scheme. The scheme is not effective as it doesn’t guarantee a high-quality sustainable job on a decent wage for every young unemployed person. Ministers should also ensure that ethnic monitoring is built into the scheme so it is clear who is taking part and whether they are getting jobs at the end. In addition, Government should  encourage employers to use positive action measures permitted by the Equality Act.  
  • Give more financial support for people who have lost their jobs. Without a boost to universal credit, many will be pushed into poverty. 
  • Provide dedicated careers advice for young workers who have lost their jobs. 

TUC General Secretary Frances O’Grady said: “Covid has removed any doubt that racism exists in our workplaces – and in wider society. And our new analysis shows that it starts as early as age 16. 

“All our young people need opportunities as they start out on their careers – but they’ve been hit hardest by job losses in the pandemic. And some are facing additional obstacles because of their race. That’s wrong. 

“Ministers must stop delaying and challenge the racism and inequality that holds back BME people from such an early age. And start creating good new jobs so that all of our young people have a fulfilling future to look forward to.” 

Chair of the TUC Young Workers Forum Alex Graham said:  “Young workers have experienced first-hand the impact of the pandemic. Many have lost jobs and others are concerned that without help from government, they will be out of work too.  

“The disproportionate impact on young BME workers is another reminder that racism exists in the labour market as in wider society. More work is needed to tackle discrimination in the labour market and make racism it a thing of the past.  

“The government must act to protect and create jobs and provide careers advice to help young people find work. We’ll be talking at our conferences about the all the action needed to stop the mass unemployment of young workers.”