‘Lost Generation’ Feared As Third Of Young Still On Dole After Six Months

(Daily Mail) – MORE THAN ONE IN THREE YOUNG PEOPLE on the dole have been jobless for more than six months – the worst rate for 15 years.

The analysis from trade union research adds to growing evidence that the recession is giving rise to a ‘lost generation’.

The long spell of looking unsuccessfully for work for 366,000 young people aged between 16 and 24 has bolstered the million-strong pool of Neets – those not in employment, education or training.

The TUC’s figures saying that 39% of young people who are now jobless have been out of work for more than six months, means Britain has reached a level of long-term youth unemployment not seen since 1994.

Leading economist David Blanchflower said: ‘Rising youth unemployment is a national crisis.

‘Spells of unemployment, especially ones of long duration, hurt young people later in their working lives, and that hurts the rest of us.’

Mr Blanchflower, a former member of the Bank of England’s Monetary Policy Committee, added: ‘We need to prevent these people from becoming a lost generation.’

The analysis came alongside other estimates showing that men are suffering most from rising unemployment during the recession.

This is because predominantly-male industries such as construction and the private sector have been hit hardest by job losses.

The finding from the Chartered Institute of Personnel and Development conflict with the view of Women and equality minister Harriet Harman, who has set out her concern that women face greater difficulties during the recession.

The CIPD’s estimates were based on current unemployment rates of 9% for men and at 6.9% among women.

It said that during the recession the number of men on the dole had gone up by half, while the number of unemployed women has risen only by a third.

More than one in 10 men will be unemployed by the middle of next year, the research said.

The analysis said that since the Second World War there have been only two years in which a lower proportion of men were in work, in 1993 and 1994.

Male unemployment is likely to peak at around 11%, or 1.9 million workers, the statistics showed.

The CIPD also gave a warning about unemployment among young men, pointing out that one in five of those aged between 18 and 24 are on the jobless rolls.

John Philpott, chief economist at the CIPD, said that the labour market had become more difficult for both sexes.

But he claimed women were likely to feel greater pain in the future as cuts in public spending hit the public sector, which employs a higher proportion of women.

He said: ‘It is likely that the relative position of women will itself deteriorate in the coming decade as real cuts in public expenditure have an adverse impact on public sector employment.

‘However, it is important to highlight the current plight of men in the labour market, not least because once the impact of recession and a “jobs-light” recovery is fully felt the proportion of men in work will probably have fallen to a record low.’