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unemployment is an international phenomenon. Even in Finland, where the school system is revered by many as an inspiration, youth joblessness remains high.


Youth unemployment is not a ‘supply’ problem – young people not having the right education, skills or aptitude. The changing nature of the economy, and in particular the decline of manufacturing, means employers do not create ‘youth jobs’ in the way they used to. In a service economy, where the growth of part-time, flexible employment is increasingly apparent, young people face greater competition as employers look for applicants with experience. The recession has accentuated youth joblessness; it is not the cause of it.


Using research showing it is no more expensive to provide jobs than to keep young people on the dole, the previous Labour government introduced the Future Jobs Fund (FJF). This subsidised employers if they took on unemployed young people for sixth months. FJF was abolished by the coalition Government.


Like Professor Wolf, the new Government favours expanding new apprenticeships. The problem is that even though élite apprenticeships offered by BT and Rolls-Royce are more over- subscribed than Russell universities, many employers don’t really want them and schemes may have to be run by training organisations or colleges.


As part of an expansionary economic policy to create proper employment and restore public services, we need specific policies for reducing youth unemployment, including guarantees that those finishing apprenticeships are able to find a job.


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