A long period without work at a young age can have a long-lasting effect on a person’s life chances, leading to a higher future likelihood of unemployment and lower future earnings. For this reason, UK policymakers should be particularly worried about the present level of youth unemployment. There are currently 868,000 young people aged 16–24 unemployed in the UK, and 247,000 of them have been looking for work for over a year.
This is not simply due to the financial crash and recession. While the last six or seven years have been particularly tough for the latest generation of young people, even before the financial crisis many of those entering the labour market for the first time were struggling to compete with older workers for jobs. This suggests that even a full-blown economic recovery is unlikely to solve the problem of youth unemployment in the UK.