The share of young people who are workless has fallen by over a
quarter since the mid-1990s, when it was a major social and
economic problem, but this decline is predominantly down to
falling inactivity among young women, with inactivity among young
men now rising, according to new research published today
(Monday) by the Resolution Foundation.
The report Not working, supported by the Health
Foundation, finds that youth worklessness fell by 300,000 between
1995 and 2021, from 1.1 million to 800,000. Young women accounted
for 280,000 of this decline, with overall worklessness falling by
just 20,000 among young men.
Youth worklessness among minority ethnic groups has also fallen
sharply. Among young people from Black, Bangladeshi and Pakistani
backgrounds it has fallen by 9, 13 and 10 percentage points
respectively. However, young people from these backgrounds are
still more likely to be workless than those from White or Indian
backgrounds.
As well as shrinking overall, the research finds that the nature
of youth worklessness in modern Britain has changed.
Unemployment (in which a workless person is actively looking for
work) has fallen for both young men and women, while economic
inactivity (where a workless person is not looking for work) has
fallen sharply for women (from 18 per cent in 1995 to 10 per cent
in 2021), but risen for men (from 5 to 9 per cent).
Falling worklessness among women has been driven primarily by
falling rates of young parenthood, as well as an increase in the
number of women who choose to combine parenting with work. The
number of 18-24-year-old women who were economically inactive due
to family care responsibilities fell by 220,000 (almost 80 per
cent) between 2006 and 2021.
However, the switch from unemployment to rising inactivity among
young men needs urgent attention because inactive young people
are less likely to move into work or study than unemployed young
people. The Foundation’s research finds that the proportion of
workless young men who are workless for more than a year rose
from 56 per cent to 70 per cent between 1995 and 2021.
A key driving force behind this worrying trend is rising
inactivity due to long-term sickness or disability, which
accounts for three-quarters of the rise in inactivity among young
men.
Between 2006 and 2021, inactivity among young men because of
long-term illness or disability more than doubled, rising by
45,000 to reach 91,000. Women saw a smaller rise of 28,000 during
this same period.
Looking more closely at these figures, the Foundation finds that
mental health problems are key part of the growth in health
issues (for both men and women) that lie behind economic
inactivity in young people.
This reflects a marked increase in the number of young people
reporting a common mental health disorder (CMD) in recent years,
says the Foundation. Between 1995 and 2018-2019, the proportion
of young men aged 18-29 with a CMD rose from 17 per cent to 24
per cent, and the proportion of young women from 29 per cent to
34 per cent.
Mental health problems also raise the risk of prolonged
worklessness. Among young people who become workless, those with
a CMD are 27 per cent more likely to remain workless for at least
a year, compared to those without a CMD.
The Foundation warns that should these recent trends continue,
the progress made by young women will be more than offset by
rising inactivity, and the number of workless young people will
again begin to rise.
Louise Murphy, Economist at the Resolution Foundation,
said:
“Back in the 1990s, widespread worklessness among young people
was a major social and economic problem. Welcome progress has
been made since then, with youth worklessness now down by more
than a quarter, and young women making the biggest strides.
“But there are troubling signs for young men who have seen
inactivity rates – and the risk of prolonged worklessness that
comes with them – increase.
“Rising inactivity among young men has been driven by an increase
in people suffering from long-term ill-health or a disability,
with mental health problems in particular increasing the chance
of young people becoming workless, and remaining workless for
longer.
“Unless we address these challenges now, there is a risk that the
welcome progress made in recent decades could soon go into
reverse, with widespread youth worklessness becoming a major
problem in Britain once again.”
Martina Kane, Policy and Engagement Manager at the Health
Foundation, said:
“The extent to which mental health issues are contributing to
worklessness among young people, particularly young men, is
deeply concerning. A failure to address the growing rate of poor
mental health could leave an enduring legacy as young people with
mental health problems are more likely to become workless and
remain workless for longer. This is likely to be fueling a
vicious cycle as we know that good quality work supports people’s
health and wellbeing, including their mental health.
“Good quality work is a key building block of good
health. Leaving young people to struggle without support for
either their mental health or their employment prospects risks
not only their immediate health, but also their future health. We
hope that these findings will provide a wakeup call for policy
makers to take targeted action.”
