Pensions are set to rise but half a million young people are now out of work, latest figures show

Responding to today’s ONS labour market figures, James Cockett, senior labour market economist for the CIPD, the professional body for HR and people development, comments:

“Today’s labour market figures show that the direction of pay growth is downwards, meaning workers will continue to feel the pinch of the cost-of-living crisis. Pensioners are set to receive a 4% rise in their pensions, following the Government’s commitment to the triple-lock. However, by the time this comes into effect in April 2025, earnings growth for the working population is likely to be much lower.

“Vacancies have now fallen for 26 consecutive months, but they remain above pre-pandemic levels as many employers continue to have difficulties recruiting. The Government is right in saying they have the ‘greatest employment challenge for a generation’ with a joined-up policy approach required to tackle labour market inactivity, particularly high levels of long-term sickness.

“Whilst overall unemployment levels have fallen, it’s concerning that youth employment has reached its highest level in over three years. It’s important proposed changes to strengthen employment rights are subject to proper consultation, to ensure they don’t add to the cost or risk employers face in employing staff as this could deter firms from recruiting young people who typically require more development.

“There is also a need for the Government to go further than its proposed Youth Guarantee for 18-21year-olds. There is a strong case for the introduction of an Apprenticeship Guarantee to provide a guaranteed level 2 or 3 apprenticeship for 16-24-year-olds. This would help address the collapse in apprenticeship provision among young people in recent years and provide more routes into work.”