The latest UK figures reveal that youth unemployment has soared to 16.1%, the highest level since 2014, despite inflation dropping to 3%, according to the Office for National Statistics (ONS).
Michael Kill, CEO of the Night Time Industries Association (NTIA), warned that government policy has contributed directly to the spike. “Raising the cost of employment through higher National Insurance contributions and minimum wage increases was always going to hit young people hardest,” he said.
Overall unemployment now stands at 5.2%, signalling a cooling labour market, but the real concern lies with entry-level roles for young people, which have been disproportionately affected.
“The irony is stark,” Kill added. “Youth unemployment climbs to a decade high, and months later schemes are introduced to bring them back into work. Public funds are then used to fix problems that industry clearly predicted.”
The Resolution Foundation highlights that UK youth unemployment is now higher than the EU average, a troubling sign for long-term economic growth.
Industry leaders are urging policymakers to align wage and tax measures with economic reality to avoid further damage to entry-level jobs and small businesses.
Kill concluded: “Policy must be judged not just by inflation numbers but by whether it creates sustainable employment. The data this week should prompt serious reflection — if we are serious about growth, confidence, and youth opportunity, industry insight must guide the decisions ahead.”
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