Press Story

The think tank IPPR has today welcomed the Government's announcement of a boost to apprenticeships for young people and a review of apprenticeship standards - both policies that were recommended in an IPPR report published yesterday.

As expected, figures released today by the Office for National Statistics show the number of young people, aged 16 to 24, unemployed in the UK breached 1 million for the first time. There were 1.02 million young people unemployed in the three months ending September.

IPPR analysis of the latest unemployment figures show:

Over one million(1,016,000) young people (aged 16-24) are now unemployed, the highest since comparable records began in 1992. Over the last three months, the number of young people unemployed rose by 67,000.
Of those, 259,000 young people (aged 18-24) have been unemployed for more than a year, the highest for 17 years.
Overall, 868,000 people have been unemployed for more than a year, the highest for 15 years.

The Government has today announced a £1,500 payment to small companies that take on their first apprentice, if that person is aged under-25. The Government estimates that this scheme will increase the number of young apprentices by around 20,000. But IPPR has noted there is no new funding for this initiative, with the £30 million cost to found from within the previously announced £1.4 billion apprenticeships budget.

The Government is also going to review apprenticeships standards, with the threat that schemes which are found not to be up to scratch will lose their funding. All schemes will be expected to provide English or mathematics training for apprentices who do not have GCSE qualifications in these subjects.

Tony Dolphin, IPPR Chief Economist, said:

"Today's announcement is a step in the right direction. Only 36,600 of last year's 163,000 increase in apprenticeships was accounted for by young people aged 16 to 24.

"The apprenticeship brand should be reserved for young people aged 25 and under. Apprenticeships should not just be seen as a knee-jerk reaction to higher unemployment. They also have a role to play on socialising young people and preparing them for a life of work.

"Apprenticeships can help young people break out of the unemployment trap by offering additional general education, the chance to learn the 'soft skills' that employers often demand and specific job-related training. But employers have become increasingly reluctant to hire school leavers. They need more support to set up apprenticeship programmes, particularly when they are hiring apprentices for the first time.

"However, with long-term unemployment among young people now close to one-quarter of a million, the government needs to do more. It should introduce a job guarantee, paid at the minimum wage or above, to any young person who has been out of work and claiming Jobseekers' Allowance for more than a year, matched by an obligation to take up the offer or find an alternative that does not involve claiming JSA."

Notes to editors:

IPPR's new report - 'Rethinking apprenticeships' - was published on 15 November and is available here: http://www.ippr.org/publications/55/8028/rethinking-apprenticeships

The latest unemployment figures are available from: http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/november-2011/statistical-bulletin.html

Apprenticeships increased by 58 per cent from 2009/10 to 2010/11, from 279,700 to 442,700. However the vast majority of this increase was accounted for by adults aged over 25. IPPR's new research shows that 40% of apprenticeships went to over 25s last year and that just 37,000 of the 126,000 extra apprenticeships created last year went to 16-24 year olds. The rise in apprenticeships for over 25s represents a growth of 257%, while for 19-24 year olds the rise in apprenticeships was just 22% and for 16-18 year olds the growth was just 10%.

IPPR's report says that although the number of apprenticeships for young people has grown over the last two years, employers are using apprenticeship funding to subsidise training for workers over the age of 25. The report argues for a political consensus to support a continued growth in apprenticeships but argues that the apprenticeship 'brand' should be reserved for young people.

IPPR analysis of the latest unemployment figures show:

Over one million(1,016,000) young people (aged 16-24) are now unemployed, the highest since comparable records began in 1992. Over the last three months, the number of young people unemployed rose by 67,000.
Of those, 259,000 young people (aged 18-24) have been unemployed for more than a year, the highest for 17 years.
Overall, 868,000 people have been unemployed for more than a year, the highest for 15 years.

Contact

Richard Darlington, 07525 481 602, r.darlington@ippr.org

Tim Finch, 07595 920899, t.finch@ippr.org