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.”