Employers want the Genuine Article, not the Finished one

Youth worklessness is not new, but the scale of the challenge now demands urgent attention. Nearly a million young people in the UK are not in education, employment or training, and that number continues to rise. If we do not act, it could reach one in six within the decade. The cost already runs to around £125 billion each year.

It leaves young people and education providers to prepare for and manage uncertainty in employability.

Alan Milburn’s interim review makes the problem clear. This is not a short-term spike in unemployment. It is a deeper pattern of detachment from the labour market. Too many young people never get that first foothold in work. Once someone moves into that position, they are no longer just between jobs. They are outside both education and the labour market. The report warns that we risk creating a lost generation unless we act with urgency.

The system does not give them the opportunity or support they need. Education, skills, welfare and health services do not work together effectively. That is why Alan Milburn calls for a full system reset.

My advice to young people and to providers is simple: get used to uncertainty but not despondency. This economy brings both risks and real opportunities. For many young people, that means taking a more flexible route into work. Temporary roles, contract work and short-term assignments are not second-best options. They are often the first step into the labour market, helping build confidence, develop skills and understand what different sectors offer. These experiences allow young people to try roles, test environments and make informed choices about their future, rather than feeling locked into a single path too early

This is a system-wide problem that requires education, employers and government to act in step.

Education providers need to bring learning closer to the economy. Employers are not asking for perfect candidates. They are asking for capability from the students who leave school or college. They want communication, problem solving, adaptability and a clear understanding of how the workplace operates and how to progress.

They want the potential and not the finished article. Employer investment in cultivating that is of course essential.

To deliver that, providers need stronger partnerships with business. They should collaborate with employers to design courses, create meaningful work experience and give students regular exposure to the workplace.

This is why we need a modern reset of work experience. We must move beyond rigid two-week placements towards flexible, hybrid and project-based approaches that allow young people to contribute and learn, not just observe. When young people see the relevance of what they learn, they engage more and achieve more. Providers can then build on this by thinking more creatively about the structure of vocational training, maybe initiate ‘gap weeks’ or ‘gap months’ instead of ‘gap years’ and promote temporary work. These routes give young people the skills, confidence and workplace understanding they will need to thrive in work.

For FE leaders and practitioners, this is not a new challenge, but the scale of it means we need to go harder and faster.

We also need to broaden our view of what success looks like. FE providers can be more assertive in saying that university offers a strong route for many, but it cannot stand as the only benchmark or the end goal for everyone. Technical education, apprenticeships and flexible training options should sit alongside it as equally valued pathways into good work.

At the REC, we see every day that businesses will invest in talent when the pipeline works. Too often, employers must bridge skills and experience gaps that the system should address earlier.

This is not about shifting responsibility. It is about shared ownership. FE providers sit at the centre of this challenge, but they cannot solve it alone. Across the country, FE providers are already doing much of this, often in difficult circumstances and with limited resource. But they need a simpler goal: prepare young people for real jobs in a changing economy.

We owe the next generation a system that delivers on that promise. One that encourages joined up thinking, bridges the gap between people and work, and offers real work exposure alongside flexible routes through skills and training.

We also need to recognise that employability does not sit in isolation. Rising economic inactivity among young people links closely to health, confidence and the support structures that help them stay engaged with learning and move into work.

Too many young people fall out of education or employment because of mental health challenges, long-term conditions or a lack of early support. Once they fall out, it becomes much harder to return. That is where FE can step in.

At the REC, we are not welfare experts, but we do understand what helps people move from Universal Credit into work through our Restart work with employability providers Maximus. By connecting recruiters who have the vacancies with Maximus who have the candidates we have shown that closer links between the two can achieve great results. So far, our work has helped almost four thousand people into work.

Too much time is spent managing inactivity and not enough helping people move forward. Education providers play a crucial role here. Early support, strong pastoral care and clear progression routes can keep more young people engaged before problems become entrenched. We also need better alignment between education, health and employment services, with flexible pathways that help young people rebuild confidence and re-engage at a sensible pace.

That said, business must also step up. It cannot leave this challenge to government alone because businesses create opportunity and drive job growth. Employers must engage directly with young people, not only as a matter of responsibility but as a strategic priority. Young people and businesses need each other, as they always have, and strengthening that connection will shape a more resilient economy.

By Shazia Ejaz, Director of Campaigns at the Recruitment and Employment Confederation (REC)