British think tank urges to solve unemployment of young people

British think tank Institute for Public Policy Research (IPPR) new report has suggested that the country need to do more to improve the career opportunities for the young people, despite a new record low jobless rate in six years has been released Wednesday.

The Office for National Statistics (ONS) announced on Wednesday that the unemployment rate dropped to 6.4 percent in the three-month to June 2014, down from 6.5 percent in the three-month to May, and recording the lowest level since late 2008.

However, the report released by IPPR shows about 868,000 young people aged 16 to 24 in Britain have no jobs (580,000 if those in full-time education are excluded) and 247,000 of them have been looking for work for over a year.

In addition, a study in 2013 found that around 700,000 young people are workless and have never had a job, and almost one million are classified as not in education, employment or training, which known as NEET.

The report said that even a full-blown economic recovery will not solve the problem of youth unemployment in Britain.

A long period without work at a young age can have a long-lasting effect on a person?s life chances, leading to a higher future likelihood of unemployment and lower future earnings. For this reason, UK policymakers should be particularly worried about the present level of youth unemployment, it said.

The report suggests that employers, vocational education, policy, funds and training and benefits system for young people need to be improved to tackle this problem.

While the last six or seven years have been particularly tough for the latest generation of young people, even before the financial crisis many of those entering the labour market for the first time were struggling to compete with older workers for jobs, said Tony Dolphin, IPPR Chief Economist.

He added, although there has been a sharp fall in the number of unemployed young people over the last year, it is unlikely that even a full-blown economic recovery will fully solve the structural youth unemployment problem.

We can learn lots from countries like Germany and the Netherlands. The experience of young people across Europe shows a strong workplace-based vocational education and training system, with high employer involvement, contributes more to a smoother transition from education to work and a low rate of youth unemployment than anything else,he said.

The UK Commission for Employment and Skills (UKCES) welcomed the report from IPPR on Wednesday, saying it agreed with the recommendation from IPPR that more businesses should engage with local schools, colleges and universities to achieve inspired and well prepared young workforce.