Reed CEO: Graduate jobs crisis is getting worse
With graduate job postings continuing to plummet, youth unemployment should be treated as a national crisis, writes James Reed in today’s Notebook
Youth unemployment has become a national crisis
In recent days, we’ve seen more stark evidence of the deteriorating jobs market, particularly for young people.
Rising costs and the march of AI are weighing on recruitment, with vacancies falling to 707,000, their lowest level for five years – and their lowest level outside of the pandemic in nearly 12 years, according to the latest official figures.
More than 16 per cent of 16- to 24-year-olds are seeking work. More than a million are ‘NEETs’, classed as those not in employment, education or training. The ongoing review by former Labour minister Alan Milburn has identified that one in seven NEETs has a university degree.
We hear regular stories of young people applying for hundreds of jobs before even receiving a response.
Reed identified the specific jobs crisis for graduates over two years ago. Graduate jobs postings on Reed.co.uk have declined from around 180,000 four years ago to 50,000 today. Adzuna recently reported an even steeper decline, with graduate opportunities down 85 per cent since 2017. The situation is getting worse, not better.
How should policymakers respond to what is becoming a national crisis? Firstly, as AI eats into jobs and makes tech entrepreneurs ever richer, we should look to tax robots and back humans. It makes no sense to hit a youngster clearing glasses in a pub garden in their first job with employment taxes, while leaving AI untouched.
Secondly, we need to recognise that recent policy decisions have made companies less keen to recruit. I said an increase in employers’ National Insurance would be a tax on jobs before Rachel Reeves implemented it, and so it has proved. We need to look to start to reverse and ultimately eliminate taxes on more types of jobs. Burdensome new employment regulations also need another look. Specifically, it would make sense to exclude temporary and agency work – often a first stepping stone into the workplace for young people. As things stand, we are making employers more risk averse about taking people on.
It seems Alan Milburn’s conclusions won’t be published till after the autumn Budget. But that Budget will set the economic course for Andy Burnham’s administration. There are signs – such as the review of business rates announced this week – that Mr Burnham and John Healey have a better understanding of the need to back business than their predecessors. For all our youngsters’ sakes, we must hope so.
My father’s entrepreneurial legacy
A few days ago, I was excited to see the presentations from the first candidates for our new All About Business Entrepreneurs Fund. Our founder, my late father Sir Alec Reed, launched the Reed business in 1960 with just £75. His journey is one of many that reminds us of what’s possible when ambition meets opportunity. That’s why we are giving back: celebrating 66 years in business by supporting 66 young people with their entrepreneurial journey over the coming years. Inspired by Reed’s purpose – improving lives through work – the fund will support at least six young entrepreneurs in year one with £20,000 each, alongside expert mentorship, to help scale their business, overcome challenges and accelerate growth. After choosing the first winners, I scattered my father’s ashes. He would be approving and proud that part of his legacy will be supporting young entrepreneurs in this way.
Helicopter jobseekers
We have noticed a trend for parents and sometimes grandparents to get very closely involved in graduates’ and school leavers’ job applications and interviews. It isn’t surprising that people are worried and want to help their offspring, given the state of the entry-level jobs market. But we’re hearing about people going to extraordinary lengths – actually completing job applications for youngsters, or sitting in on remote interviews just out of shot and offering tips in real time. I would advise that while it’s good to offer support, it is counterproductive to micromanage in this way. If parents want to help, they could try giving their children my book Why You: 101 Interview Questions You’ll Never Fear Again or take advantage of the free careers advice on Reed.co.uk
What I’m watching
I’m enjoying a brilliant new Netflix series, Legends. As drugs flood the streets of 90s Britain, a team of civil servants is thrust undercover to tackle the problem. It’s based on a true story and stars Steve Coogan and the excellent Tom Burke. Highly recommended.
A seaside gallery
I went to Tynemouth recently to visit my grandson and his family, and was really struck by how lovely the whole area is.
I was particularly impressed with Bubbles, a six-foot-tall sculpture of a giant cod commissioned by North Tyneside Council and made entirely from real beach litter – such as plastic bottles, straws, food cartons, and bags – collected along the local coastline. Encased in a Perspex cube on a bed of rubbish, the sculpture, by local artists Beth Huttly and Amy Welch, tours seaside locations in the area to raise awareness about single-use plastics. It gives the impression of a community that really cares about its environment and I found it hopeful, positive and inspiring.