London has the highest rate of youth unemployment in the UK, with 24.6% of 16 to 24-year-olds currently out of work, according to data released by the Office for National Statistics. The figures, covering November to January, show an increase of 10,000 unemployed young people compared to the previous three-month period.
The difficulties faced by young job seekers are multifaceted, extending beyond simple economic pressures. Many report submitting hundreds of applications for even entry-level positions. One student recently secured a waitressing role after applying for 100 jobs, illustrating the intense competition. A common refrain among those searching is a feeling of being stereotyped as “lazy,” a perception they strongly reject.
The legacy of the COVID-19 pandemic continues to cast a shadow over the youth employment landscape. A period crucial for gaining work experience and building confidence was disrupted for many, leaving a gap in skills and preparedness. As Meghan Owen, BBC London’s work and money correspondent, has observed, young people feel they have “missed an entire chapter” that would have better equipped them for the professional world.
The rapid advancement of artificial intelligence is also reshaping the job market, altering both the application process and the nature of work itself. While the government has introduced business grants aimed at incentivizing companies to hire young people and apprentices, the changing skills landscape presents a significant challenge. Experts are now advising young people to prioritize developing AI literacy and “people skills,” arguing that these are areas where human capabilities will remain competitive.
Businesses are facing their own hurdles. The increase in the national minimum wage for younger workers, coupled with recent tax increases, is adding to financial pressures. Roles traditionally held by young people in sectors like hospitality and retail are diminishing. Despite these challenges, Owen notes a remarkable level of optimism and determination among the young people she has interviewed, describing them as “tech-savvy, open-minded, and determined not to be beaten by a gloomy job market.”
The experiences of young entrepreneurs offer a contrasting perspective. Myanara Wander, 24, transitioned from a professional netball career to founding MJ Eats, a Caribbean takeaway business, after sporting events were cancelled during the pandemic. Starting with a compact operation and initial funding of £150 from her grandfather, the business has grown to encompass events, hospitality, and job opportunities, now employing 50 people. Wander’s story highlights the entrepreneurial spirit emerging from the pandemic, but also acknowledges the difficulties in securing funding, particularly for young, Black entrepreneurs.
The Confederation of British Industry estimates that 800,000 companies were registered in the first year of the pandemic, a 22% increase compared to the previous year, suggesting a surge in new business creation. Yet, the long-term sustainability of these ventures, and their ability to absorb the growing number of job seekers, remains to be seen.
A panel discussion featuring under-25s addressing issues of jobs and housing is scheduled for 15:30 on BBC Radio 5 Live with Matt Chorley. Further coverage of youth unemployment in London will continue on BBC Radio London and BBC One at 18:30.
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