Good to hear that tomorrow, @RishiSunak will outline a Plan for Jobs that includes a £2bn Kickstart scheme to offer temporary jobs to unemployed young people. 1/8
1) While recessions drive up unemployment, recent experience tells us that education leavers – especially those with mid- and lower-level qualifications – are hardest hit. 3/8
2) For many, unemployment isn’t a one-off misfortune. Several years after leaving education, unemployment rates for those who left during the financial crisis were higher than for those who left after it. The penalty is particularly large for non-graduates. 4/5
3) The sectoral nature of this crisis makes young people’s school-to-work transitions even harder: more than one-in-three non-grads get their start in previously shutdown sectors like non-food retail, hospitality & entertainment, which are likely to struggle for some time. 5/8
We estimate that the Kickstart scheme could create about 350k jobs. Beyond helping young people’s incomes in the here & now, work experience can reduce employment scarring & provide young people w/skills and experience to set them up for a better future. 6/8
As ever, the scheme’s success in helping young people into work (and preventing scarring) will depend on the details, including the speed at which jobs can be created and young people matched to them. 7/8
And of course, this scheme will need to be complemented by wider measures to encourage employers to take on young people, and that ensure other schemes like apprenticeships go to those who need them most. In the meantime, however, this is an announcement worth celebrating. 8/8
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