Cost of youth unemployment to UK economy at all time high
Youth unemployment is costing the UK economy 48 million per week, according to new research published yesterday by youth charity, The Prince's Trust.
Calculated by defining lost productivity as equivalent to Jobseeker’s Allowance, this cost of 16-24 year old unemployment is at an all-time high. If based on what an average person this age actually earns, the figure would jump to £155 million per week.
The report comes out as The Centre for Economic Performance found that the number of 16-24 year-olds claiming job-seeker’s allowance for 12 months or longer had increased four-fold since the start of the recession, from 5,840 claimants in 2008 to 25,800 claimants in 2010.
The UK now has higher youth unemployment than Germany, Denmark, Austria, Norway and The Netherlands.
Martina Milburn, chief executive of The Prince's Trust says: "The annual cost for an individual jobseeker can be as much as £16,000. The argument for intervention and support is unquestionable."
Steve Davies, chief executive of the National Skills Academy for Power, which desperately needs new young talent, added: "The statistics from The Prince’s Trust are a depressing reflection of the UK’s economy. We are disappointed that, despite the annual increase in funding for Apprenticeship schemes within the UK, young people still feel that the Jobseeker’s Allowance is the best option for them."
The National Skills Academy for Power is a collaboration of UK companies and training providers from across the power sector. It recently launched its ‘Think Power’ initiative which seeks to raise the profile of the power sector as a career of choice.
