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New findings suggest even short periods without work, education or training in early adulthood can affect finances, health and job prospects decades later.
Transcript
00:00In that preparation period, it's really important to build up life skills and have a bit of an attitudinal transformation,
00:06as we call it, you know, which actually looks ahead and looks at the opportunities.
00:11So I think it's a really important area and all the more important now because, as we heard from the
00:20research, more than half the problem with youth unemployment is caused by really problems in a weaker labour market.
00:30And so that's a big challenge that comes through from the Resolution Foundation.
00:34Young people struggling to find work or training opportunities could face consequences that stretch far beyond their early careers.
00:42Researchers say being out of education, employment or training between the ages of 16 and 24 is linked not only
00:50to difficulties finding work later on, but also to poorer financial outcomes and worse physical and mental health.
00:58At a time when many families are already worried about the cost of living and future prospects, it's a picture
01:04likely to resonate in communities across the country.
01:09You know, things have become much more online.
01:13There is much more use of artificial intelligence in business as well.
01:18All of those things mean that there's less, you know, starter occupation for young people coming through.
01:25And I mean, that's a big difference, really, over the last 15, 20 years, because if you look back, you
01:34know, to, you know, to that sort of stage, people would look to, you know, maybe have a good apprenticeship
01:41or, you know, be able to find their way into an intern role or something like that, and to be
01:47able to grow into a job which will become a career in front of them.
01:50And these days, you don't see that degree of predictability or reliability within that.
01:55And I think that's one of the big challenges.
01:57The latest research suggests the length of time young people spend outside of work or education matters.
02:03Those who were persistently classed as neat in early adulthood were far more likely to experience unemployment in midlife.
02:11Men who spent two to three years in that position were twice as likely to report financial hardship, poor health
02:19and psychological distress later in life.
02:22Researchers argue that intervening early is critical, helping young people maintain confidence, build skills and avoid becoming detached from the
02:31labour market altogether.
02:33It isn't an automatic thing to be looking forwards, you know, in that process of growing through your teenage years.
02:41So what we do with our main life skills programme, which is called Steplower Plus, is we incentivise every step
02:48that they take.
02:49So, you know, the steps like literacy, numeracy, financial education, every step that they go through, actually, they get extra
02:57money in their account for doing.
02:58And that means that when they start the course, it's, you know, oh, if I take this step, I'll earn
03:04a bit of money on that.
03:05But actually, by the time they got through three or four steps, they're really picking up the message.
03:10And I mean, step four, for example, is write 250 to 500 words on what I'm going to do myself
03:16when I reach adulthood.
03:18And, you know, it is so inspiring to read those comments coming through.
03:23It's something I'd recommend for anyone, actually, to try and do a bit of planning.
03:27The findings come alongside wider concern about the scale of the issue.
03:31More than one million young people are now estimated to be outside work, education or training, the highest level in
03:39more than 12 years.
03:41A separate review warned that opportunities for young people are shrinking, with many reporting repeated rejections, despite applying for dozens,
03:50sometimes hundreds of roles.
03:52The government says it is bringing forward major employment reforms and expanding opportunities through grants, apprenticeships and subsidised work.
04:02Critics, though, argue rising business costs risk reducing entry level opportunities, particularly in sectors that have traditionally offered a first
04:12step into employment.
04:14Rather than holding young people in contempt, we believe in them and we are making opportunity for young people a
04:20national cause.
04:21We have begun with the youth guarantee, more work experience, workplace training and apprenticeships, hiring bonuses for employers who take
04:31on young people in regular or apprenticeship roles and subsidised employment for young people who remain out of work for
04:3818 months.
04:47For now, both reports point to the same challenge, helping young people gain a foothold in work before temporary setbacks
04:56become long-term disadvantage.
04:58Further recommendations are expected in the months ahead, and the debate over how best to support the next generation into
05:06employment is likely to remain high on the agenda for employers, educators and policymakers alike.
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