A stark report published today by the Resolution Foundation paints a grim picture of declining economic mobility among young Britons, warning that a “lost generation” is emerging as access to stable employment, vocational training, and homeownership recedes. The study, titled “The Cratering of Opportunity”, finds that real wages for under-25s have fallen by 8% since 2010, while the proportion of young people in apprenticeships has halved over the same period.
Prime Minister Keir Starmer responded by pledging a major expansion of the apprenticeship system, vowing to create 50,000 new placements annually by 2028. Speaking at a Downing Street press conference, Starmer described the report as a “wake-up call” and announced the creation of a new “Skills and Opportunity Taskforce” to be led by the Education Secretary. The initiative will funnel £2.5bn into vocational training, with a focus on sectors facing acute labour shortages: construction, healthcare, and green energy.
The report’s authors point to a structural shift away from employer-led training. Since the removal of the Apprenticeship Levy in 2022, private sector contributions have dropped sharply. Meanwhile, university participation has risen to 48%, but graduate underemployment is at a record high. “We are creating a bifurcated labour market: high-skill, high-reward roles for a few, and a precarious service economy for the rest,” said Dr. Hannah Ellison, the report’s lead researcher.
Conservative shadow ministers have accused the government of “picking up the pieces from its own mismanagement”, noting that apprenticeship starts had already fallen by a third under the previous Labour administration. The Liberal Democrats have called for a “youth guarantee” of a job, training, or education place for every 16- to 24-year-old.
Internationally, the British experience mirrors trends in other advanced economies. France has invested heavily in apprenticeships since 2018, with a 40% increase in starts. Germany’s dual education system remains a benchmark, achieving near-full employment for under-25s. The UK, by contrast, ranks 28th out of 38 OECD countries for youth not in employment, education, or training (NEET).
The macroeconomic context is unforgiving. The Bank of England’s sustained interest rate hikes have cooled hiring, while the end of pandemic-era support schemes has left many young workers exposed. Youth unemployment has nudged up to 12.1%, though still below the 20% peaks of the 1980s.
Starmer’s plan hinges on a new “employer partnership levy” that will require large firms to either fund apprenticeships or pay into a central training pool. Critics within his own party warn this could become a bureaucratic burden, while business groups have stressed the need for flexibility. “Apprenticeships must be responsive to local employer needs, not a Whitehall tick-box exercise,” said the Confederation of British Industry.
The Resolution Foundation recommends a statutory target for apprenticeship spending, indexed to GDP, and the creation of regional “opportunity boards” to coordinate training with local economic development. The government has not yet committed to these proposals.
For young Britons, the stakes are high. The report calculates that a 20-year-old entering the labour market today can expect lifetime earnings 15% lower than their equivalent in 2005, adjusted for inflation. Homeownership rates for under-35s have fallen from 65% in 1990 to 39% in 2024. “We are not just losing a cohort,” the report warns. “We are losing the promise of intergenerational progress.”
