Responding to the Office of National Statistics figures on young people not in education, employment or training (NEETs),
Chair of the Local Government Association’s City Regions Board, Sir Richard Leese, said:
“It is positive that the number of young people not in education, employment or training has fallen.
“With more than 760,000 young people still NEET, it remains vital that we ensure more young people have the opportunities to increase their skills and retrain, so we can drive up productivity and start to close local skills gaps.
“With greater powers and resources, councils can help the Government more effectively reduce long-term unemployment and the number of young people out of work by being able to target support locally as well as tackle skills gaps.
“Councils want to ensure every young person realises their full potential and supporting our young people to make an effective transition from education to employment must be a top priority. This means providing the right careers advice and guidance, and holistic support needed for every young person.
“Devolving careers advice, post-16 and skills budgets and powers to local areas, would allow councils, schools, colleges and employers to work together to improve provision for young people so that they can get on in life.”
Office for National Statistics
763,000 (11.1%) 16 to 24-year-olds were NEET (not in education, employment or training) in Oct-Dec 2019
-A decrease of 26,000 (0.3 percentage points down) on Oct- Dec 2018
The employment rate rose to an all-time high of 76.2%, with an increase of 24,000 taking the number of people in work up to a total of 32.8 million.
However, annual wage growth, excluding bonuses, slowed to 3.5% from 3.6% from July to September.
ONS head of labour market David Freeman said: “While the estimate of the employment rate nudged up in the most recent quarter, the longer-term picture has seen it broadly flat over the last few quarters. However, unemployment among women has reached a new record low.
“Vacancies have fallen for 10 months in a row and are now below 800,000 for the first time in over two years.
“Pay is still increasing in real terms, but its growth rate has slowed in the last few months.”
There were an estimated 794,000 vacancies in the UK for September to November 2019. That is 20,000 fewer than in the last quarter and 59,000 fewer than a year earlier.
The estimated employment rate for men was 80.4% and for women was 72%.
The increase in women’s employment in recent years is partly a result of changes to their State Pension age, which has meant fewer retiring between the ages of 60 and 65.
The slight slowdown in wage growth is party caused by the fact that in October 2018, some unusually high bonuses were paid to some workers. Bonuses given this October returned to more expected levels.
For October 2019, average regular pay, before tax and other deductions, was estimated at £509.68 per week.
Chancellor Sajid Javid said: “There’s talent up and down this country – three-quarters of employment growth in the last year has been outside London and the South East.
“I’m looking forward to getting Brexit done and unleashing Britain’s potential, levelling up opportunity across the country.”
Tej Parikh, chief economist at the Institute of Directors, said: “The UK’s jobs boom continues to be a big plus point for the economy, but it is slowly losing momentum.
“Businesses have shown a strong appetite to take on staff in recent years, and climbing employment levels have boosted household incomes, adding buoyancy to the economy. However, firms are now cutting back on new hires as it becomes harder to find the skills they need.
“Uncertainty and slowing global growth have also made businesses a bit more cautious in their recruitment plans, and vacancies are expected to continue falling into 2020.”
Employment is at a record high and unemployment at a record low in October’s figures, but the Office for National Statistics says that both are broadly flat.
How can that be true?
These records involve the kind of tiny changes we’re used to seeing with new records in the 100-metre sprint.
Employment’s previous record high was January’s figure of 76.13%.
October’s estimate is 76.15%: an improvement of 0.02 percentage points.
For unemployment, the record has gone down from 3.797% in May to 3.757% in October’s figures – a change of 0.04 percentage points.
So the estimates haven’t been better in a long time, but the improvements are tiny and certainly smaller than the margin of error in any figures like these.
Coupled with the substantial fall in job vacancies and a hint of slowing wage growth, the emerging picture is less of rampaging record highs and more of decelerating demand for new workers.
Regional, local authority and Parliamentary constituency breakdowns of changes in UK employment, unemployment, economic inactivity and other related statistics.
For the three months ending August 2019, the highest employment rate estimate in the UK was in the South West (81.0%) and the lowest was in the North East (71.2%).
For the three months ending August 2019, the highest unemployment rate estimate in the UK was in the North East (5.8%) and the lowest was in the South West (2.4%).
For the three months ending August 2019, the highest economic inactivity rate estimate in the UK was in Northern Ireland (26.4%) and the lowest was in the South West (17.0%).
Between March 2019 and June 2019, the largest estimated increase in workforce jobs in the UK was in the North East at 43,000, while the largest decrease was in London at 35,000.
In June 2019, the region with the highest estimated proportion of workforce jobs in the services sector was London at 91.4%, while the East Midlands had the highest proportion of jobs in the production sector at 14.4%.
The highest average estimated actual weekly hours worked, for the 12 months ending June 2019, was in London at 33.7 hours and the lowest was in the North East and South West, both at 31.3 hours; for full-time workers it was highest in Northern Ireland, at 38.6 hours and for part-time workers it was highest in Scotland at 17.1 hours.
Almost half of the class of 2019 in the UK won’t get a graduate-level job and will remain underemployed, latest figures show.
The state of the graduate market, 2019:
About 800 000 will graduate this year in the UK (HESA, 2018).
380 000 of them will be underemployed, taking jobs that do not require a degree (CIPD, 2017).
Of the 420 000 graduates who do land a graduate-level job, 250 000 will be within tech/digital and IT roles (Graduate Coach, 2019).
This data has been compiled by Graduate Coach – the UK’s leading graduate coaching company. They have successfully coached 500+ students and graduates helping them to secure graduate-level jobs at a wide range of organisations including Deloitte, Google, IBM, The NHS and more.
In response to these findings, Graduate Coach has collaborated with CV-Library to commission research to gain a better understanding of why graduates are struggling to find graduate jobs that match their level of education.
A survey of 1500 graduates revealed:
90% found it difficult to work out what job would suit them best
86% found it difficult to write a good CV
85% find interviews difficult and nerve-wracking
85% admitted needing work experience before entering the workforce
Chris Davies, the founder of Graduate Coach said: “This is a sad reality for the graduates and the country because it involves wasted potential.”
He also reveals: “ there are three main reasons why the 48% of graduates will fail to get suitable work: They don’t know which careers will suit them best, they cannot write good achievement-based CVs and need to acquire interview skills.”
Estimates of young people (aged 16 to 24 years) who are not in education, employment or training, by age and sex.
For April to June 2019:
There were 792,000 young people (aged 16 to 24 years) in the UK who were not in education, employment or training (NEET); this number increased by 28,000 from January to March 2019 and was up 14,000 when compared with April to June 2018.
The percentage of all young people in the UK who were NEET was 11.5%; the proportion was up 0.4 percentage points from January to March 2019 and up 0.3 percentage points from April to June 2018.
Of all young people in the UK who were NEET, 41.6% were looking for, and available for, work and therefore classified as unemployed; the remainder were either not looking for work and/or not available for work and therefore classified as economically inactive.
People in the UK are more worried about losing their jobs today than they have been at any point over the past five and a half years, according to the latest figures from the ONS.
The Personal and economic well-being in the UK: August 2019 report, released 12 August, found that confidence in job security is low. People’s expectations for increasing joblessness have been climbing, with the net proportion of people expecting rising unemployment rates in the year ahead reaching 23.1% in the first quarter of 2019, the highest level since the second quarter of 2013. These growing fears come despite UK employment currently standing at the joint-highest rate on record (76.1%), according to the latest Labour market overview published today (13 August).
While all economic wellbeing measures improved in the first quarter of 2019, including household income and wealth, “people’s expectations for the economy for the year ahead are that it will worsen”, the ONS reported.
This falling confidence comes as concerns are mounting that the UK will leave the European Union without a deal, with prime minister Boris Johnson vowing to leave “come what may” by 31 October. Meanwhile separate ONS figures last week, showing that the UK has witnessed the first fall in quarterly GDP in six and a half years, have sparked concerns that the UK could be headed for a recession.
Amanda Mackenzie, chief executive of Business in the Community, said that economic and political uncertainty is causing UK employees to fear for their jobs.
“Prescient Brits have been expecting higher unemployment and for the general economic situation to deteriorate and, following last week’s negative GDP number, they may well be proved right,” she said.
“With a no-deal Brexit looming, the UK economy is arguably at its most crucial juncture for a decade and it’s no surprise people feel less secure about their jobs and the broader economic picture. In 10 weeks or so we could be entering the economic and political unknown and this uncertainty is understandably on people’s radars.”
The report also looked at personal wellbeing in the UK. Personal wellbeing showed very little change, with anxiety remaining stable in the year ending March 2019, the ONS said. The data found that almost one in five (19.8%) UK adults continued to report high levels of anxiety.
While people reported slightly higher happiness ratings, rising from 7.52 to 7.56 out of 10 in the last year, about 4.2 million people continued to report “low” levels of happiness.
Gail Kinman, professor of occupational health psychology at the University of Bedfordshire, told HR magazine that fears over employment and the economy are closely linked to personal wellbeing.
“Studies have found that job insecurity is one of the most profound and widespread workplace fears. It can be a major source of stress and anxiety for individuals and their families,” she said.
While UK employment is at record levels, there are still millions of people across the country who have never had a paid job reports the Office of National Statistics.
Around 3.6 million adults in the UK have never been paid for work, analysis has shown.
Of more than 41 million 16- to 64-year-olds in the UK, 75% were employed in July 2017 to June 2018, but there were still nearly 10% who had never done paid work.
Young people aged 16 to 24 years represent most of the population who have never had a paid job – 71% including students. Even excluding those in full-time study, more than half of people who have never carried out paid work are aged under 30 years (52%). Read more
For July to September 2018, there were 760,000 young people (aged 16 to 24 years) in the UK who were not in education, employment or training (NEET); this number decreased by 23,000 from April to June 2018 and was down 29,000 when compared with July to September 2017.
The percentage of all young people in the UK who were NEET was 10.9%; the proportion was down 0.3 percentage points from April to June 2018 and down 0.3 percentage points from July to September 2017.
Of all young people in the UK who were NEET, 37.0% were looking for work and available for work and therefore classified as unemployed; the remainder were either not looking for work and/or not available for work and therefore classified as economically inactive.
YouGov has today (22 Nov) released the Education and Training Statistics for the UK 2018, which specifically state that the NEET rate (Not in Education, Employment or Training) for 18-24 year olds has fallen each year between 2013 and 2017, from 16.8% in 2013 to 12.9% in 2017, including a 0.5 percentage point fall between 2016 and 2017.
Alan Woods OBE, CEO of VTCT, said:
“It is absolutely imperative that all of us involved in the education and training of young people tackles youth unemployment and it simply isn’t good enough that more than 1 in 10 young people are classified today as not in education, employment or training (NEET). With a growing economy and falling unemployment, we cannot forget that there are 760,000 young people still out of a job or not in the education and training system.
“We know that vocational and technical education, and specifically apprenticeships, as well as the many other advantages they bring to all learners, can also bridge that gap for young people who fall off the system and acts as a lifeline to bring them back in. We need a properly funded, holistic plan that upskills all of the UK’s potential workforce that challenges schools, colleges, private training providers and awarding bodies to remain inclusive for all learners, especially those with difficult circumstances, and champions young people into a career choice of their own which leads to a job.” Read more
Experimental statistical release of employment rates for first degree and other undergraduate leavers from HE publicly funded and alternative providers for 2015/16 and 2016/17. Published 24th July 2018
A HESA release of experimental UK performance indicators (PIs) on ‘employment of leavers’ showing the proportion of undergraduate leavers in work or further study 6 months after they graduated. The indicators include UK publicly funded higher education institutions (HEIs) and designated alternative providers (APs) in England. Academic year 2015 to 2016 and 2016 to 2017 is published. Read more
The number of apprenticeship starts has dropped significantly since last year, calling into question the effectiveness of the apprenticeship levy.
Figures from the Department for Education have revealed that there have been 261,200 apprenticeship starts between August 2017 and March 2018 for the academic year. This compares to 362,400 and 346,300 starts reported in the equivalent period in 2016/17 and 2015/16 respectively. This shows a drop of almost 28% from last year’s figures.
The new numbers suggest that the government will fall short of its plans to create three million new apprenticeship starts by 2020.
In response to the decline in apprenticeships the Chartered Management Institute (CMI) has released a 10-point plan for the government and employers to encourage more apprenticeship starts. These include listening to businesses to help reform the levy, relaxing the ‘complex and restrictive’ levy rules, employers embracing wider workforce planning and the government providing a single point of accountability. On this point, the CMI stated: ‘The Institute for Apprenticeships should be resourced to bring forward apprenticeship standards more quickly and take on end-to-end responsibility for the successful funding, execution and monitoring of apprenticeships policy.’ Read more
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