UK reaches decade-high in Young Workers’ Index
The UK has improved its position in an international index that measures the prospects of young workers.
However it remains a long way behind Europe’s best performer, Germany. It is estimated that the UK could boost GDP by £43bn if it reduced the number of young people not in education, employment or training (NEET) to match Germany.
The UK has reached its highest position since PwC began its Young Workers Index in 2006, climbing to 18th out of 35 OECD countries – up from 20th last year.
The UK’s improvement reflects lower youth unemployment and NEET rates as the economic recovery from the financial crisis has continued, but it still lags behind many other OECD countries, with Switzerland, Iceland and Germany leading the pack.
Performance is varied across England, due to differing labour market opportunities and levels of educational attainment.
Matthew Hammond, PwC’s Midlands regional chairman, said the index was “encouraging” but levels of NEETs remained too high.
He added: “Regional disparities in NEET rates also remain a concern. If the Midlands is to ensure regional prosperity in a post-Brexit world, more has to be done to ensure we close the gap with the South East and with our European competitors in places like Switzerland and Germany.”
PwC’s research also finds that, by the early 2030s, up to 28% of the existing jobs of young UK workers aged 16-24 could be at risk from automation, but new AI-related technologies will also create many new employment opportunities.
Across the UK as a whole, 30%of existing jobs could face automation over the next 15 years, so ensuring young workers have the appropriate education and training to take on jobs will be crucial to maximising the UK’s long terms economic potential, the report added.
