Urgently tackling the jobs crisis facing young people should be part of a wider rethink on lifelong learning, according to a new report by the British Chambers of Commerce (BCC).
With Alan Milburn’s final report into the number of young people not in education, employment or training (NEET) due this Autumn, the BCC’s report argues “investment in youth opportunity and adult skills is not an either or”. The AI revolution makes this even more critical.
The report ‘From Classroom to Career: Delivering Growth Through Lifelong Learning’ urges policymakers to create a more joined-up skills system in England that supports career wide learning to drive forward growth.
The BCC’s latest UK wide workforce survey questioned over 850 businesses and showed that more than half (58%) are facing skills shortages. Meanwhile, around two thirds (67%) of firms said better access to skilled employees would support growth.
The BCC welcomes the recent introduction of the Youth Guarantee, newly published Local Skills Improvement Plans, and plans to broaden the scope of Ofsted to better recognise how well schools are preparing young people for work.
But the report calls for further action, including:
- A UK wide employer national insurance contribution cut for all under-25s to reduce the cost of hiring young people.
- Skills England to co-design the future of the Growth and Skills Levy in partnership with business by next year.
- A clearer co-investment model for the Lifelong Learning Entitlement in England before its roll-out in January 2027.
- A single framework for flexible work experience to make it easier for firms to engage.
- Every school and college to be connected to a local employer-led mentoring network by September 2027.
The report argues that “a stronger lifelong learning system” is needed to make it easier for people to continue developing skills throughout their careers and helps businesses invest confidently in their workforce. The BCC says lifelong learning will become more crucial as technology transforms jobs, and working lives become longer and less linear.
The report challenges policymakers “not to create more programmes, products or initiatives”. It concludes that what is needed is “a clearer, simpler and more coherent system” that connects “careers guidance, skills development and employment support throughout a person’s life”.
Shevaun Haviland, Director General of the British Chambers of Commerce said: “Tackling the worrying youth jobs crisis must be part of a wider rethink on lifelong learning.
“BCC data shows a deepening skills crisis embedded in our economy.
“Growth depends on having people with the right skills in the right jobs, and that means throughout somebody’s career.
“Too often policymakers have treated careers advice, skills development and employment support as separate issues. The reality is that they are all part of the same journey.
“The government has made some positives steps, including the Youth Guarantee and plans to broaden the scope of Ofsted to assess how schools are preparing students for the world of work.
“Firms are eagerly awaiting the publication of Alan Milburn’s final report. But the businesses we represent also want to see government action on helping adults retrain, upskill and adapt throughout their working lives. The AI revolution makes this even more critical.
“October’s budget is an opportunity for the government to announce proactive measures that will cut the cost of doing business, while boosting skills opportunities and productivity.
“If policymakers create the right framework, businesses stand ready to play their crucial part.”
