Youth unemployment soars to three

Youth unemployment in the UK has reached its highest level in three years, with the unemployment rate for 18 to 24-year-olds climbing to 13.3% in the three months leading up to July, according to the Office for National Statistics (ONS). This surge in youth unemployment comes at a time when the overall UK unemployment rate has decreased slightly to 4.1%, down from 4.2% in the previous quarter, indicating a troubling divergence in the job market. The decline in job vacancies has been notable, with the number of available positions falling for the 26th consecutive period, totaling an estimated 447,000 fewer vacancies since the peak observed between March and May 2022. This trend has been consistent across all industries, suggesting a broader economic slowdown that is impacting job availability. Additionally, wage growth has slowed significantly, reaching its lowest pace in two years, with regular wage growth recorded at 5.1% year-on-year for the three months to July. This stagnation in earnings growth is compounded by a decrease in the number of self-employed individuals and a reduction in both job seekers and those not actively looking for work. The rise in youth unemployment poses a significant challenge for the government and for Sir Keir Starmer, who aims to reintegrate more individuals into the workforce. The current economic climate, characterized by declining job vacancies and slowing wage growth, raises concerns about the future prospects for young job seekers in the UK.