UK Govt feels heat as jobless youth near million

The British Government's record on youth unemployment will come under intense scrutiny this week amid fears that the total of jobless 16- to 24-year-olds will pass the one million mark.

Economists believe the failure of large numbers of this year's school leavers and graduates to find work over the northern summer will lead to a sharp jump in those under 25 without work when the data for August is released on Thursday.

Hiring freezes have meant new entrants to the labour market have been badly hit by the recession and at 947,000, unemployment in the 16 to 24 age group is 300,000 higher than when Tony Blair came to power in 1997 pledging to fight the youth unemployment inherited from the Tories.

Professor David Blanchflower, a former member of the Bank of England's monetary policy committee and a labour market expert, said: "I think unemployment for the under-25s is certain to go through one million, if not this month then next."

The opposition has accused Labour of creating a new "lost generation" of young unemployed and the deepest recession since World War II prompted Alistair Darling, the Chancellor (Finance Minister) to announce a guarantee of a job, training or work placement for all 18- to 24-year-olds in this year's Budget.

Blanchflower said that with youth unemployment making up more than a third of the 2.47 million total, the Government needed to step up its efforts.

Urging an immediate increase in the school-leaving age to 18, he added: "The Government should do anything it can to stop young people being unemployed, including offering to pay them benefits while on internships."

Howard Archer, chief UK economist at IHS Global Insight, said: "A lot of young people who are unemployed now will still be unemployed next summer when the next group of graduates and school leavers will arrive."

The Trades Union Congress expressed concern but said it had doubts about unpaid work placements.

Brendan Barber, TUC general secretary, said: "The Future Jobs Fund will provide much needed help for 100,000 young people. Without this there is a real risk young people could be forced into a cycle of unpaid internships and work experience, which are no substitute for real jobs paying a decent wage."

John Philpott, chief economist of the Chartered Institute for Personnel and Development, predicted overall unemployment would continue rising well into next year.

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