Legions of people are not on the dole but not looking for a job – and that’s a massive problem for the economy.
Work and Pensions Secretary Liz Kendall is expected to unveil new measures to get people into work (Image: Getty)
More than half a million jobless young people are not looking for work, a leading think tank has warned.
The Centre for Social Justice has sounded the alarm about nearly 946,000 people aged 16-24 who are not in education, employment or training – 552,000 of whom are not on the search for a job.
It warns the size of this “inactive” age group has increased by more than half in just three years. Many of those not looking for work will suffer from ill-health or a disability.
The CSJ wants specialist employment support and training opportunities for people with such challenges, as well as better help from employers.
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Labour went into the last election with a plan to “get two million people into work and deliver the highest employment levels in the G7”.
James Heywood, an expert with the think tank, said: “The Government must commit to tackling economic inactivity, especially among young people. Without supporting people back into the labour market, its ambitious employment targets are simply unachievable.
“The rising tide of long-term inactivity will cost the country billions of pounds if left unstemmed.”
The CSJ warns that unless action is taken to “reverse the tide” of people stopping working for health reasons, taxpayers will face a “colossal £12billion hole in the public finances in five years time”. Up to £1.5billion of this will be made up of lost tax receipts, it claims.
Work and Pensions Secretary Liz Kendall has pledged the Government “will not allow young people not to be in education, employment or training”. But the think tank cautions that the majority of these youngsters are not on the dole so expected “tougher benefit rules” may have limited impact.
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The CSJ warns there is no room for complacency in efforts to close the “employment gap” between disabled and non-disabled people. It states that between July and September of this year it stood at 27.5 per cent, with just 54.4 per cent of disabled adults in work.
Employment minister Alison McGovern said: “These latest figures are yet more evidence of the significant challenges facing our young people, particularly the pandemic generation who have not received the support they need to reach their full potential.
“Bold measures in our Get Britain Working white paper will turn this around. We will introduce a Youth Guarantee so every 18-21-year-old in England is earning or learning while we transform Jobcentres and introduce new health, work and skill plans to give everyone – including our young people – the support they need to build a better life.”
