New report finds that employers want to hire more young people, but need greater policy support to achieve impact

Published just days after Labour Party Conference and ahead of the upcoming Milburn Review’s final report and recommendations, a new report has found that 24% of employers expect to increase their recruitment of young people aged 16 to 24 over the coming year, with just under half expecting hiring of young people to remain stable.

This is encouraging news given that approximately one million young people are not in education, employment or training (NEET). However, the report also finds this appetite isn’t without barriers, with one third (33%) of businesses saying that young applicants lack the skills, qualifications or experience required, and that financial incentives would make the single biggest difference to their ability and willingness to hire.

The report, From Appetite to Opportunity: What Employers Need to Recruit More Young People, is the first in a regular series of employer insights produced by the Learning and Work Institute and commissioned by The St Martin’s Group. It draws on a YouGov survey of 1,039 HR decision-makers, alongside reflections from 44 members of The St Martin’s Group’s new Employer Insights Panel.

Key findings from the report include:

• Three in ten (30%) large businesses expect to recruit more young people, compared with 14% of small businesses and 25% of small firms don’t expect to recruit any young person at all.
• Employers most commonly plan to recruit young people directly (40%), through internships, placements or work experience (39%), or via apprenticeships (36%); while planned use of the Government’s Youth Guarantee is low at 11%.
• One third of employers (33%) say young applicants lack the skills, qualifications or experience required, while almost a quarter (24%) say young people need more support adjusting to the workplace.
• Large employers are markedly more likely than small employers to say AI and technology are reducing the number of suitable roles for young people (27% versus 5%).
• One third of employers (33%) say financial incentives, such as an increase to the apprenticeship job grant, salary offset or tax relief, would make the biggest difference to their ability and willingness to recruit young people.

These highlight that listening to and supporting the employers who create these jobs, rather than assuming reluctance, is key to turning intent into recruitment.

Speaking at Labour Party Conference earlier this week, Work and Pensions Secretary Pat McFadden stated that Britain spends £25 on inactivity for every £1 spent helping people into work. The Government has made tackling youth inactivity a priority through its £2.5bn Youth Guarantee, with plans for 50,000 more youth apprenticeships and 300,000 more work experience places.

The findings suggest that increasing youth recruitment will require action across multiple fronts, including supporting young people’s transition into work, helping employers create opportunities, and ensuring policy and funding arrangements give businesses the confidence to invest in young talent.

Stephen Evans, CEO of Learning & Work Institute, said:

“Employers are saying they are interested in giving young people their first step on the career ladder whether through apprenticeships, Jobcentre Plus or work experience. But the realities of a tough economy make that challenging and many are saying they need practical help to both navigate a complex employment and skills system and provide the support young people may need.

“National and local governments need to work with employers so the one million young people not in education, employment or training get the help they need and employers can ensure they have the workforce and skills for success.”

Charlotte Bosworth and Richard Turner, Co-Chairs of The St Martin’s Group, added:

“Employers’ appetite to recruit young people is encouraging, but this report shows that opportunity is uneven and that different employers face different barriers to creating jobs and training opportunities. Understanding those realities is essential if policy is to translate into real opportunities for young people.

“The St Martin’s Group exists to strengthen collaboration between employers and government through insight, experience and evidence, and this first report from our new Employer Insights Panel is the beginning of a year-round programme that will help keep employer perspectives at the heart of skills policy.”

To read the report in full, visit: https://stmartinsgroup.org/