Recent figures from the Office for National Statistics reveal that the youth unemployment rate in the UK has surged to its highest level in three years. Between May and July 2024, 597,000 young people were unemployed. That’s an increase of 51,000 from the previous year and almost 50% higher than pre-pandemic.
With a highly competitive labour market, limited training opportunities, and poor mental health on the rise, it’s no wonder it’s becoming increasingly challenging to be a young person in Britain.
But with SMEs accounting for over 99% of the UK’s business population and over 60% of employment, they are in a powerful position to help reverse this trend and help improve young people’s access to work and motivate them to pursue meaningful careers.
In this article, we highlight some of the main factors behind today’s high youth unemployment and advise how organisations can navigate these issues and attract skilled, ambitious young employees.
Entry-level requirements are too high
Many businesses offer entry-level and graduate roles in the UK. These are specifically designed for school and university leavers, helping them get their foot in the door, gain relevant work experience, and develop their professional skills.
But here’s the problem: many of these jobs are falsely advertised. In an analysis of 49,082 adverts on LinkedIn’s job board, StandOut CV discovered that a shocking 51% of entry-level jobs in the UK require previous work experience.
These entry-level job adverts requested 2.7 years of experience on average. Here are the top 10 roles that are most difficult for young people to break into:
Over 60% of social work, paralegal, and junior web designer entry-level roles require several years of previous experience. In fact, all the sectors investigated have a high experience demand, all scoring well above 40%.
Intriguingly, the advertised salaries are also questionable. The average annual salary for an entry-level junior web developer is just shy of £45,000, and for a graduate associate product manager, it’s over £50k.
You’d generally expect to see this level of remuneration for jobs that require a few years of experience. But for a graduate or someone undergoing a career change, the numbers simply don’t add up.
This significant mislabelling of jobs can not only deter young people from applying but also confuse them.
Advice for SMEs
SME owners who are open to offering graduate programmes or entry-level jobs should do so fairly and accurately. These positions should focus on core soft skills rather than specific work experience, like problem-solving, leadership, and critical thinking.
Depending on the individual role and sector, companies might expect them to know how to use certain tools and software. For example, a graduate designer being familiar with SketchUp. But generally, entry-level jobs should be more focused on finding the right personal qualities that can enrich your organisation
Bear in mind that recruits will seek career progression, training, and development while working with you. How this is to be provided should also be prominent in the job vacancy post.
Hiring processes are strenuous
There can often be a power imbalance in the hiring process. Even though applicants are also interviewing the employer, the ball, ultimately, lies in the employer’s court. Unfortunately, some companies take advantage of that power.
For example, they may have an unnecessary number of interview stages. You’d typically expect two or three—a casual conversation followed by a formal face-to-face interview and possibly a task to check the applicant’s abilities.
However, some companies impose up to six stages. That may be genuinely warranted for a large conglomerate with big teams, but generally, it’s inefficient.
Not only does it make little business sense, but think of it from the candidate’s perspective. One interview alone is nerve-wracking enough for a school leaver or graduate hoping to land their first job, but having to do this several times create a stressful and unpleasant experience.
Applicants are getting ‘ghosted’
A new trend in the HR world has emerged, known as ‘ghosting’. This is when an applicant has been unsuccessful, but no one reaches out to let them know. Instead, they are simply not contacted.
In a recent survey conducted by CV Genius, over 55% of hiring managers confessed that they are not opposed to ghosting unsuccessful applicants. A further 33% said they’d do it again.
Admittedly, when the majority of applicants are rejected, it can be difficult to respond to every one of them. But ghosting them can make your business look unprofessional and trigger depression in the candidate.
Advice for SMEs
When recruiting young people (or anyone, for that matter), it’s vital to create a positive, friendly, and inviting atmosphere. By all means, give them a challenge. After all, prospective employer wants reassurance that they can do the job.
But it’s best to keep interview processes efficient and fair for the benefit of both the business and the applicant. Consider whether that extra stage is truly needed, if the application requirements are convoluted, or if the task that is being set is reasonable.
Also, a high level of communication standards should be maintained. Employers should respond to all candidates in a timely manner, and thank those who are unsuccessful for their time. Even if it’s a template email, they will appreciate your response.
It is also worth remembering that interviews play an important role in spreading brand awareness. The candidate is likely to share their experience with their family and friends, not to mention publicly on Glassdoor or Indeed.
AI overlooks suitable candidates
SMEs are becoming increasingly aware of artificial intelligence (AI) and how it can streamline various business processes, including recruitment. For instance, it can automatically filter through hundreds of CVs and send automated responses to applicants who don’t meet your requirements.
Sounds ideal to a busy business owner, right? In reality, this system can prevent young adults from securing jobs that they are qualified to do.
Like any machine, AI recruiting tools can only do what you tell them to. That limits them to the algorithm that is being used. However, if that algorithm is biased and unfair, these tools become unreliable and can often dismiss perfectly suitable candidates in error.
Let’s take a look at a real-life example. In an interview with The Guardian, Joshua Morgan, a graduate with an MSc degree, said: “Getting through that initial sift is so much harder now than it was. Amazing people from my course are still looking [for jobs] because automatic filters don’t allow people to show you their worth.”
Morgan explained that he had applied for over 150 jobs and had been invited to just 10% of the interviews. He described sending that many tailored CVs and covering letters into “a void” as “soul-destroying” and categorised his experience of looking for work as “hostile, impersonal and condescending.”
Advice for SMEs
The capabilities of AI are wide-ranging. It’s not just the selection phase which AI can be useful for. It can help write effective job descriptions, headhunt relevant candidates through social media, and automate onboarding procedures. However, if AI recruitment tools are adopted, it’s vital to be cautious.
And when it comes to CV screening, we recommend doing this manually. That way, employers can gauge applicants’ characters and ensure that suitable recruits are noticed. Also, young adults with limited experience often need someone to simply take a chance on them, which is something that AI will never be able to do.
Lack of adjustments for those with poor mental health
A major employment barrier for young people in the UK is poor mental health. According to the Youth Futures Foundation Youth Employment 2024 Outlook study, a third of 18-24-year-olds say they have a mental health condition (such as depression or anxiety). Of those, a staggering 85% claim that poor mental health not only affects their ability to find work but also function and progress in a professional environment.
These figures have only worsened in the last decade. Since 2013, the number of young adults who are out of work due to ill mental health has doubled, increasing from 93,000 to 190,000.
Advice for SMEs
Given the above figures and the increased focus on mental health, it’s crucial to remove this barrier from the job hunt and connect young people with more supportive employers.
Small business owners may feel more restricted by their available resources compared to larger organisations. However, there are plenty of free/low-cost solutions that small businesses can implement. Here are a few ideas:
- Strengthen internal communication by offering staff wellbeing 1-2-1 meetings, where they can confidently and safely voice any concerns they may have about how their work impacts their mental health
- Construct proactive and well-managed action plans for any employee who is affected by ill mental health
- Share useful resources with your workforce that could help them look after their mental health, such as newsletters or contact details for relevant helplines
- Manage workloads effectively by hiring enough staff, thus avoiding any one person experiencing disproportionately high stress and pressure
- Implement flexible working arrangements if/where possible, allowing staff to enjoy a healthy work/life balance
- Offer private health insurance that includes mental health support, such as counselling sessions (providers like Bupa and Vitality offer small business packages)
- Ensure employees are provided with adequate annual leave allowances
- Consider offering unique leave types, such as sabbaticals and mental health leave
Creating a supportive work environment shows young job seekers that a business is a mindful employer that prioritises staff wellbeing and development. This will help make a company a more appealing place to apply to work.
Limited apprenticeship opportunities
Apprenticeships are one of the main gateways for young people to work. Disappointingly, the Youth Futures Foundation study revealed that nearly 30% of those under 25 feel there simply aren’t enough opportunities available in their chosen sectors.
Where apprenticeship placements are offered, 33% of respondents say they find them inaccessible due to the low minimum wage for apprentices, which is currently only £6.40 per hour.
In the same interview with The Guardian that we mentioned earlier, another student expressed how tough it’s been to find work since they left university: “I wish I’d known how important placements were—I had to drop my placement year as I couldn’t find any placements to apply to. There were a couple, but I couldn’t afford commuting to London to then work for free.”
Advice for SMEs
Small organisations may be reluctant to take on and train young staff due to the costs and time commitment involved. However, hiring an apprentice offers lots of benefits for your business as well as the apprentice. For example:
- Government funding of up to £1,000 for apprenticeship training
- Young adults can help plug a skills gap by training them to fulfil the specific roles an organisation needs
- Taking on eager apprentices who are passionate about developing their skills in their chosen field can reward a business with a productivity boost
- In return for providing valuable work experience and training, apprentices are likely to remain loyal employees beyond the apprenticeship
By offering apprenticeships, a business can help improve economic growth and reduce one of the main barriers that young Brits face today when it comes to finding work. For further information, see the government website for guidance on how to employ an apprentice.
Take action to help tackle youth unemployment
Battling a national issue like high youth unemployment is a mammoth task for SMEs. However, small steps can make a huge difference, and by following some of the advice we discussed in this blog, businesses can help improve young people’s access to work and improve their long-term career prospects.
Thanks for reading. Please leave any comments or questions you might have below.
