The mounting challenge for Britain’s young jobseekers
Britain is facing a rising unemployment backdrop that is impacting younger workers more sharply than other age groups, according to a new analysis from the Resolution Foundation. With official figures anticipated to show unemployment climbing to around 5.1%, the thinktank highlights a growing “jobs deficit” for young people and graduates who are entering or trying to remain in the labour market.
Why young people are disproportionately affected
The report argues that younger workers are often first in line for hiring freezes and redundancies when the economy slows. They are also more likely to be employed in sectors most exposed to cyclical downturns, such as hospitality, retail, and some service industries. In contrast, some older workers may benefit from longer tenures or more flexible work arrangements, cushioning the overall impact on the broader employment rate.
Additionally, the transition from education to work is a critical window. When the pace of job creation slows, fresh entrants can face longer spells of unemployment or underemployment, with potential knock-on effects for earnings, career progression, and lifetime earnings trajectories.
What the Resolution Foundation is measuring
The thinktank’s analysis centers on a persistent “jobs deficit” for young people, which reflects a mismatch between the number of available roles and the demand from jobseekers in the 16-24 and 25-34 age brackets. The data suggest that while overall unemployment may hover around a certain rate, youth unemployment and underemployment rates reveal a more nuanced and troubling picture of the labour market’s health for younger generations.
Implications for policy and families
Policy makers are being urged to consider targeted measures that support youth employment. Potential steps include expanding apprenticeship and traineeship programs, subsidizing first-time hires in sectors with growth potential, and scaling up job search support tailored to younger workers. At the family level, households may feel the strain as earnings stall or shrink, affecting decisions on housing, education, and long-term savings.
Outlook and what to watch next
As official statistics are released, economists will scrutinize the trajectory of the job market. A 5.1% unemployment rate would not only shape immediate financial pressures but could influence consumer confidence, retail activity, and policy responses in the coming quarters. The Resolution Foundation’s findings emphasize the importance of safeguarding opportunities for younger people to build resilience against a cyclical downturn and to support sustainable growth over the longer term.
Key questions for readers
- Which sectors are most likely to rebound first, and how can young workers position themselves for those roles?
- What kinds of government or private-sector programs could best reduce the youth jobs deficit?
- How might higher unemployment among young people affect lifelong earnings and social mobility?
Ultimately, the data underscore a critical challenge: a downturn in jobs that is not evenly shared, with young people bearing a disproportionate burden. Addressing this requires targeted policy levers, coordinated with robust training and employment support, to help the next generation navigate a tougher labour market and to sustain economic momentum in Britain.
