Lost generation

It is the growing desperation at how to solve this seemingly intractable problem that gives rise to bad ideas such as that touted by the Labour Party yesterday.

Yes, of course it is unfair that bankers are walking away with huge and often undeserved bonuses while so many young people are without jobs. But even if all these bonuses had a huge tax slapped on them, the money raised would do little to alleviate the problem. And, in any case, state-sponsored jobs have never been the answer to any economic crisis.

There are many reasons for the rise in youth unemployment, from the failure of too many of Britain’s schools to the disincentives to work contained in the benefits system. But it is the economic slump that has exacerbated the problem: in hard times, companies stop hiring long before they start issuing redundancy notices and this has a disproportionate effect on the young.

So it is that, in spite of the Government’s attempts to improve schools, make apprenticeships worthwhile and ensure that work pays, none of this will have any great effect on joblessness without a return to economic growth.

As with so much of the coalition’s agenda, these were all policies designed for a healthy economy. In contrast, on the most urgent topic of all, that of creating growth, the Government seems to have very few ideas indeed.