A stark assessment published today by the Resolution Foundation has warned that a generation of British young people risks being permanently left behind as the labour market tightens and opportunities contract. The think tank’s analysis, titled “The Lost Decade?”, draws on data from the Office for National Statistics and longitudinal surveys to argue that the economic scarring from the 2008 financial crisis, the pandemic, and the current cost-of-living squeeze has created a structural disadvantage for those under 25.
The report finds that youth unemployment, while not at crisis levels of the early 2010s, remains stubbornly above the national average. More critically, the quality of jobs available has declined. The number of young people in part-time, zero-hours, or gig economy roles has risen sharply, while full-time, permanent positions with training and progression have become rarer. The Resolution Foundation estimates that one in five 18-24 year-olds are now in “insecure work”, a category defined by irregular hours, lack of sick pay, and minimal job security.
Education and skills mismatches are also highlighted. Despite record numbers of young people holding degrees, employers report difficulty in finding candidates with the technical or interpersonal skills required. The report notes that apprenticeship starts have fallen since the introduction of the apprenticeship levy in 2017, and that spending on further education has been cut by 15% in real terms since 2010. This, it argues, has left many without the qualifications needed to progress.
Regional disparities are pronounced. In London and the South East, youth unemployment stands at around 10%, while in the North East and Yorkshire it exceeds 16%. The report warns that this geographic divide is likely to widen as London-centric industries such as finance and tech continue to dominate, and as public transport connections to other regions remain poor.
Mental health is another casualty. The report cites NHS data showing that rates of depression and anxiety among 18-24 year-olds have doubled since 2012, with economic insecurity cited as a major contributing factor. The Resolution Foundation calls for a comprehensive “youth guarantee” that would ensure every young person not in education, employment, or training is offered a high-quality job or training place within six months.
Government officials have pushed back, pointing to the recent expansion of the Kickstart scheme and increased funding for apprenticeships. However, the report’s authors argue that these measures are insufficient and that without a fundamental shift in policy, the UK risks a repeat of the lost generation of the 1980s.
The report comes as the Office for Budget Responsibility is expected to revise down its growth forecasts for the year, adding further pressure on the Treasury to act. The Bank of England has also warned that rising interest rates and inflation will continue to dampen business investment, leaving fewer graduate schemes and entry-level posts available.
For many young people, the picture is bleak. The report includes testimony from a 24-year-old in Manchester who has applied for over 200 jobs in the past 18 months, only to be offered unpaid internships or roles with no guaranteed hours. Such stories, the authors say, are not anecdotal but reflective of a systemic failure to integrate young people into the economy.
The Resolution Foundation’s final recommendation is for a cross-party commission on youth employment, modelled on the Post-War Reconstruction committees. Without such a body, it warns, the economic and social costs of inaction will be felt for decades.
