Scale of youth unemployment problem ‘is being distorted’

The Chartered Institute of Personnel and Development (CIPD) argued only a relatively minor number of 16- to 24-year-olds are facing severe difficulties.

The widespread perception that one in five young people were unemployed was based on a “narrow and misleading” interpretation of official statistics, while talk of a lost generation of young jobless people was simplistic, it said in its report.

Almost a third of young people classified as unemployed by the Office for National Statistics (ONS) are in full-time education, “distorting” public perception of the level and rate of youth unemployment, it was claimed.

It was more accurate to say that one in eight 16-24 year olds were unemployed, said the CIPD, which called on the ONS and the Department for Work and Pensions to issue a joint statement on the measurement of youth unemployment.

Dr John Philpott, the CIPD’s chief economic adviser, said: “The conclusion that one in eight young people are unemployed rather than the frequently cited but misleading figure of one in five provides no comfort to those without work. But a more realistic picture of the scale of the problem would help move the policy narrative beyond the simplistic ‘lost generation’ rhetoric.

“Aside from ensuring that fiscal and monetary policy are conducive to growth and job generation, the principal policy focus should be on how best to reduce underlying structural youth unemployment which is probably close to the 9-10 per cent rate observed prior to the recession and likely to persist even when the demand for labour eventually picks up.”

The report was published ahead of new unemployment figures on Wednesday. Official figures last month showed the number of unemployed 16 to 24-year-olds increased by 66,000 from October to December 2010 to reach 965,000, the highest figure since comparable records began in 1992.