Government plans to tackle youth unemployment lack the practical detail needed to help almost one million young people move into work, the Chartered Institute of Personnel and Development (CIPD) has warned after the King’s Speech on Tuesday.
The professional body for HR and people development said ministers had set out welcome ambitions on training and employment, but had not yet shown how they would turn those commitments into enough entry-level opportunities.
The warning comes as employers face rising labour costs, skills shortages and uncertainty over the next phase of employment reforms.
Apprenticeship detail questioned
Ben Willmott, head of public policy at the CIPD, said the government needed to move faster from broad commitments to practical support for employers and young people.
“We welcome the government’s continued focus on tackling youth unemployment and investing in apprenticeships and training opportunities for young people,” he said. “However, there remains a significant gap between the government’s ambition and action, and we need to see more concrete proposals on this.
“There isn’t a single mention of apprenticeships in the government’s briefing document beyond the introduction, so it’s unclear how they will be addressing this beyond what is already planned.
“With almost one million young people currently not in education, employment or training, there is growing urgency to move beyond reviews and consultations towards practical action. Employers need clearer incentives and support to create sustainable entry-level opportunities, particularly in sectors and regions facing acute skills shortages.
“There is a strong case for an apprenticeship guarantee for 16-24-year-olds to help ensure all young people can access high-quality pathways into work and help deliver the skills pipelines employers need to grow now and in the future.”
The latest official figures from the Office for National Statistics put the number of 16-to-24-year-olds not in education, employment or training at 957,000 in the final quarter of last year. The rate stood at 12.8 percent, with more than half of those young people classed as economically inactive rather than unemployed.
The King’s Speech set out a broad legislative programme covering education, regulation, welfare, energy and economic growth. The government said it would respond to the Milburn Review and the Timms Review, while continuing to reform the welfare system to support young and disabled people into work.
It also confirmed an Education for All Bill, aimed at raising school standards and reforming special educational needs provision.
But the CIPD’s intervention suggests employers and HR leaders will be watching closely for more detail on how the government intends to create routes into work for young people who are already outside education and employment.
Regulation and growth concerns
The government has separately announced support for apprenticeships, including plans to cover the full cost of apprenticeship training for eligible under-25s at smaller businesses by removing the five percent co-investment rate.
But the CIPD said the scale of the youth employment challenge meant ministers needed to go further, particularly if they wanted employers to create more sustainable jobs at a time of rising business costs.
The King’s Speech also included the Regulating for Growth Bill, which is intended to reduce regulatory burdens and require regulators to support economic growth.
Willmott said that aim was welcome, but warned that unresolved parts of the Employment Rights Act could still affect hiring and investment if they were not made workable for employers.
“While it is positive the government is trying to minimise the regulatory burden on organisations through its Regulating for Growth Bill, work is needed to ensure key measures in the Employment Rights Act still to be finalised don’t undermine employment and growth.
“Some of the Act’s provisions, which are taking effect as employers grapple with rising costs and global instability, risk holding organisations back from the investment in their workforces that can generate the productivity and growth the economy urgently needs.
“The government can show it’s serious about being pro-business by restarting tripartite discussions with employers and trade unions to find compromises on key measures to ensure they are workable in practice before they become law.”
Employers warn over rising labour costs
The comments come as business groups continue to raise concerns about the cumulative cost of employment reforms, including changes to flexible working, guaranteed hours and day-one rights.
Youth employment has become a growing political and economic concern, with ministers under pressure to prevent a generation of young people being left outside work and training. Alan Milburn, the former Labour minister asked to lead work on youth employment, has previously warned that the challenge requires action across employers, training providers, public services and government.
The government has said its youth employment measures will create thousands of jobs and placements, but employers are likely to want greater clarity on how those schemes will operate in practice.
Experts say the immediate concern for HR leaders is whether apprenticeship reforms, welfare changes and employment rights legislation can be aligned rather than pulling in different directions. If employers are being asked to create more entry-level roles, they say, the CIPD’s warning suggests they will also need confidence that regulation, training funding and labour costs will support that ambition.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
