Youth Unemployment Rises Under Labour, Sparking ‘Lost Generation’ Fears

Keir starmer faces warnings that Britain’s youth risk becoming a “lost generation” as analysis reveals nearly half of all jobs lost as Labour took power have been held by individuals under the age of 25.

the UK’s unemployment rate has surged to its highest level since the Covid-19 pandemic, and a youth jobs crisis is a major contributing factor. Guardian analysis shows that 46% of the 170,000 jobs lost from company payrolls since June of last year were held by those under 25 – averaging over 150 jobs lost daily.

David Blunkett, former Labour education secretary, acknowledges the government is taking action but stresses the danger of failing an entire generation. “I think we’ve got to get our act together. It’s a lost generation and if we don’t do something now the consequences economically,societally and personally will be devastating,” he stated.

Blunkett, a key figure in Tony Blair’s New Labour government, suggests Starmer consider a modernized version of the 1990s New Deal for young people, implemented during Blair’s first term. “If we could go back and learn from it, and apply it to the modern era – where obviously there’s a great deal more challenge – that would be good.”

Youth unemployment has climbed from 14.8% a year ago to 15.3%, the highest rate outside the pandemic since 2015, and more than three times the overall unemployment rate.

Key takeaways

• Nearly half of all jobs lost since Labour came to power have been held by those under 25.
• Youth unemployment is currently at 15.3%, the highest level as 2015 (excluding the pandemic).
• David Blunkett urges Keir Starmer to consider a revamped version of the New Deal program.
• the situation poses a significant risk of creating a “lost generation” with long-term economic and social consequences.

Publication Date: 2025/11/16 03:39:16

Looking ahead, addressing this youth unemployment crisis will be crucial for the Labour government. Investing in skills training, creating targeted employment programs, and fostering collaboration with businesses will be essential steps. Failure to act decisively risks not only the economic future of these young people but also the long-term prosperity and stability of the nation.