Helping the youngest members of the workforce

Anna Scott

On the face of it, the latest job figures from the Office for National Statistics should give reason for job seekers, recruiters, employers and politicians to celebrate.

The number of people out of work in the three months to August this year was down by 18,000 to 2.49 million, and the employment rate for those aged between 16 and 64 was 71.7%, up by 0.3 percentage points.

The figures suggest salaries are increasing too. Between June and August 2012 and June and August 2013 total pay rose by 0.7% and regular pay rose by 0.8%.

When even the chief economist of the Institute of Director says the recovery is “job-lite” however, it’s apparent that the picture is far from rosy.

The headline figures mask some depressing data: 1.45 million people are working part-time because they cannot find full-time work. The lack of full-time work for people has been a recurring story throughout the recession.

Another recurring theme is the “lost generation” of 16 to 24-year-olds who are stymied by a very tight jobs market and increasing higher education fees.

In the last three months the number of unemployed people in this age group dropped by 1,000 to 958,000. The shadow work and pensions secretary has called these figures “unacceptable” and the TUC general secretary says young people are being excluded from the jobs market.

The sense of demoralisation from the youngest adults in society is clear. Research published by totaljobs.com highlights the lack of certainty young people feel about their employment future. Forty per cent of those 16 to 24-year-olds surveyed said that they are not confident of having a job in the next six months, and one in four thinks they won’t find a job in the next year. More than two thirds (68%) frequently apply for jobs for which they are overqualified.

There is a role for the recruitment sector to play in getting more young people into the workforce. Aside from the obvious placing of younger candidates, consultants can educate clients on how to attract talented young people or take on apprentices, and highlight opportunities such as the Youth Contract – a £1 billion government programme to get more 18 to 24-year olds in work, which provides wage incentives, among other things.

Recruitment agencies can also educate young people in areas such as CV and cover letter writing, and interview tips. This is particularly important in light of totaljobs.com’s finding that 58% of its respondents spend two hours on a job application, half an hour less than the national average.

Progressive recruiters already focus on making younger candidates more employable and lining them up with suitable jobs. But these latest figures show there is a long way to go before young people can really feel confident about their future careers.

• The recruitment sector has expressed disappoint at the proposals to reduce tax avoidance through offshore employers published by HM Revenue and Customs. They say it will put further administrative burdens on agencies. Earlier this week the consultation closed on Offshore Employment Intermediaries, and responses published by the tax department revealed as part of the National Insurance Contributions Bill led to suggestions that a “disproportionate liability” for the national insurance and tax contributions of offshore workers will lie with recruiters. APSCo is seeking clarity on the how the new legislation will work with existing legislation and the REC suggests that the government does not “recognise the complexity of modern labour supply chains”. The sentiment of cracking down on offshore intermediary tax avoidance may be right, but the execution clearly needs tweaking.