The UK government has warned that the country's youth face a real threat of becoming a 'lost generation', after it emerged that nearly half of the jobs lost since the Labour Party came to power were held by people under the age of 25. This warning comes as the government faces sharp criticism ahead of the autumn budget announcement. Analystists at The Guardian highlighted the sharp rise in the UK's unemployment rate, which has reached its highest level since the COVID-19 pandemic, driven primarily by the escalating crisis in youth employment. Data indicates that about 46% of the lost jobs—representing around 170,000 positions removed from payrolls since last June—belonged to workers under 25, meaning a loss of about 150 jobs per day. Former Labour Education Secretary David Blunkett said that despite government measures, there is a real danger of an entire generation being abandoned, adding: 'I think we need to work together, because if we don't act now, we will find ourselves with a lost generation, and if we don't take proper steps to prevent that, the economic, social, and personal consequences will be devastating.' Blunket, a key figure in Tony Blair's first government, called on current Prime Minister Keir Starmer to consider launching a new 'youth deal' similar to the one implemented in the 1990s during Blair's first term. The highest rate. Figures show that the unemployment rate among UK youth has risen from 14.8% about a year ago to 15.3% currently, the highest level recorded outside the COVID-19 pandemic period since 2015. It is also nearly three times the general unemployment rate for those over 16. Long-term youth unemployment has also reached a ten-year high. Although young people under 25 make up only about 10% of the UK's total workforce, an analysis by The Guardian, based on recently released UK tax authority data, showed that young people were the most affected by job losses over the past year. Data from the UK's Office for National Statistics shows the number of young employees (under 25) on payrolls fell by about 77,000 last November compared to June 2024, just before Labour's landslide victory under Keir Starmer. This decline is mainly due to a reduction in the number of employees under 18. Although data showed some recovery—with about 37,000 young workers added to payrolls—the total number of young workers is still lower than it was in June of last year. Sharp criticism. The Labour Party is facing sharp criticism over the decline in the labor market after Chancellor Rachel Reeves increased National Insurance contributions by £25 for employees in last year's budget. Critics of the government used this increase to pressure it, while the Bank of England noted that tax hikes have negatively affected employment, especially in the hospitality and retail sectors, which are primary entry points for young people into the labor market. Shadow Chancellor Mil Stride said: 'The Chancellor is responsible for creating a lost generation; you cannot create jobs for young people by penalizing the companies that employ them.' Liberal Democrat Treasury spokesperson Daisy Cooper, in turn, called on Chancellor Rachel Reeves to reverse the tax hike announced in the November budget, calling the 'youth jobs crisis' a 'ticking time bomb' with 'clear solutions waiting only for the Chancellor's decision.' The Guardian • The tax increase has negatively impacted employment, especially in the hospitality and retail sectors, which serve as primary entry points for young people into the labor market.
