Youth unemployment to cost UK economy £7bn in 2022
Analysis by The Prince’s Trust and Learning and Work Institute revealed that younger workers will miss out on more than £14bn in lost earnings over the next seven years.
Youth unemployment will cost the UK nearly £7bn next year, according to a new report, which warns that it will remain high despite the economy starting to recover from the pandemic.
Analysis from the Learning and Work Institute and The Prince’s Trust has forecast that the economic cost of youth unemployment in terms of lost national output would increase to £6.9bn in 2022.
On top of this, the report said the cost to the Treasury of lower tax revenues and higher benefits spending would amount to another £2.9bn next year, while over the next seven years young people themselves will miss out on £14.4bn through lost earnings and lower employment prospects.
The report found that while some areas of the economy might begin on the road to recovery, young workers are underrepresented in these sectors, and the industries that typically employ young people will be hardest hit in the long term.
Young people had been at the forefront of the coronavirus jobs crisis. As we are slowly emerging from the worst of the pandemic, the legacy will be with us for years to come in the form of higher youth unemployment.