Call for an Apprenticeship Guarantee for 16 to 24-Year-Olds in the UK
Urgent measures required to boost youth employment amidst lingering labour market chill
A growing number of voices are urging the UK government to introduce an apprenticeship guarantee for young people aged 16 to 24. This initiative is intended to help tackle the challenges faced by sectors like hospitality and retail, which have seen significant declines in employee numbers over the past year due to factors such as rises in national insurance and the minimum wage.
Currently, there is no specific "apprenticeship guarantee" policy directly targeted at this age group. However, various initiatives and schemes aim to support young people in gaining employment and skills, such as the Youth Guarantee Trailblazer Scheme and the ongoing apprenticeship reforms.
The reforms, set to take effect from August 2025, will see changes in apprenticeships, including reduced minimum durations, new foundation apprenticeships, and more flexible English and maths requirements for apprentices over 19. These changes aim to make apprenticeships more flexible and aligned with industry needs.
However, to enhance opportunities for young people in industries like hospitality and retail, several improvements could be considered. These include targeted industry focus, enhanced support for NEET individuals, incentives for employers, increased accessibility, and the implementation of an apprenticeship guarantee.
To ensure young people start their working lives on the right foot, the apprenticeship guarantee is intended to provide valuable opportunities for learning and earning. It aims to help employers build future talent pipelines and provide meaningful job opportunities for young people.
The apprenticeship guarantee is also meant to counteract the negative effects of inflation on real wage growth, which has reached its lowest level in two years. The high pay growth in the hospitality and retail sectors, despite inflation, is a notable point in the current economic landscape.
The labour market is continuing to cool, as indicated by falling vacancies, a condition last seen in early 2015. This trend, combined with the impact of the national insurance changes on employers' costs, as shown by the pronounced falls in employee numbers, highlights the need for measures like the apprenticeship guarantee.
The ONS labour market figures have been responded to by James Cockett, a senior labour market economist for the CIPD. Cockett emphasized the importance of providing meaningful job opportunities for young people, stating that industries like hospitality and retail are key providers in this regard.
In conclusion, the call for an apprenticeship guarantee for 16 to 24-year-olds in the UK is gaining momentum. By implementing measures like the apprenticeship guarantee, the government can help ensure that young people have a pathway into high-quality, employer-backed apprenticeship opportunities, fostering a skilled and productive workforce for the future.
- To foster personal-finance management skills among young people, the apprenticeship guarantee could include courses in financial education and self-development as part of the training.
- Beyond the hospitality and retail sectors, proponents of the apprenticeship guarantee argue that this initiative could also benefit other business sectors, encouraging growth and improved financial standing.
