Spring Forecast: CIPD calls for urgent action to support youth job creation and skills development

Responding to the Chancellor’s Spring Forecast, Ben Willmott, head of public policy at the CIPD, the professional body for HR and people development, said:

“Against an uncertain geopolitical backdrop, it’s critically important that the Government creates conditions that improve confidence and stability for businesses to deliver job creation and skills development. 

“We welcome the Chancellor’s recognition of the challenges that many young people face entering employment, particularly the collapse in apprenticeship starts, and we’re encouraged to hear the Government will be setting out more reforms to support young people in the coming weeks.  

“However, meaningful progress will require bold action. Introducing an Apprenticeship Guarantee for 16 to 24-year-olds, a measure strongly backed by employers, would help ensure many more young people have a clear pathway into work.  

“The Government can also support young people and employment more widely by reviewing the pace of National Living Wage equalisation and ensuring the Employment Rights Act measures don’t act as a further headwind to job creation. 

“This means meaningful consultation with employers and where necessary compromise on key measures in the Act still to be decided in secondary legislation. The Government must also ensure there is a well-funded communications campaign to ensure employers are aware of the changes ahead of time and adequate resources are allocated to Acas, so smaller businesses in particular have access to the support they need to comply. 

“More broadly on growth, we need to see measures that will help employers across all sectors of the economy invest in skills and innovation. For example, ensuring the new Growth and Skills Levy helps employers invest in training their workforces to tackle skills shortages and supports the technology adoption that can improve productivity.”