Labour Braces for Unemployment Crisis as 1.1 Million Under-30s Seek Jobless Aid

On Saturday night, Labour faced accusations of overseeing a surge in youth unemployment, with the count of individuals under 30 receiving jobless benefits reaching a new high of 1.08 million.

Over 2,000 young individuals are enrolling daily under Labour, resulting in an increase of 66,000 people on unemployment benefits compared to prior times.Keir Starmer moved into Downing Street in July 2024.

The study, featured in a publication from the Centre for Social Justice (CSJ), highlights the possibility of young individuals being excluded from the job market and depending on the growing welfare system in Britain.

This is in contrast to the Chancellor's pledge to 'rebuild the economy's base' upon assuming her position last year, where she referred to economic growth as a 'national priority'.

ToryMembers of Parliament allege that Labour's tax increases are reducing opportunities for young individuals and contributing to a rise in youth unemployment, which has surpassed 14 per cent.

Young individuals tend to earn lower incomes and are often employed in industries like hospitality, which have suffered significantly due to the increase in employers' national insurance under Labour. A total of 150,000 positions have vanished within a single year during Labour's tenure.

The emergence of artificial intelligence is also a contributing factor – the count of new entry-level positions has decreased by almost a third since the introduction ofAI tool ChatGPT in November 2022. 

However, the CSJ's report highlights a higher reliance on benefits by young individuals.

Junior positions, which were previously held by young British individuals, are now being taken by low-skilled immigrants entering the workforce.

It suggested that employers should be obligated to promote positions to British workers initially before seeking candidates from other countries.

And former Work and Pensions Secretary Sir Iain Duncan Smith cautioned in the report that young individuals are turning to benefits as the 'disincentive to work has significantly increased'.

He stated: 'We must not let another generation be stuck in reliance instead of self-reliance and success.'

The latest official statistics revealed that the total number of adults receiving Universal Credit has reached a new high of eight million. This support assists with daily expenses and is accessible to individuals who are employed but earn little, as well as those who are unemployed or unable to work.

The number of individuals receiving benefits without any work obligations has surged to 3.7 million – an increase of one million within a single year. This occurred as the BBC recently published a report stating that people are missing out on £24 billion in unclaimed benefits and government assistance annually.

The Today programme, Radio 4's leading news show, highlighted the 'awareness, complexity, and stigma' associated with claiming benefits as a hindrance for people to access further support. It indicated that seven million households were not receiving additional financial assistance.

It acknowledged 'progress being made' by the Government in increasing awareness to assist more individuals in accessing benefits, even though the welfare bill is projected to reach £100 billion by 2030 – roughly twice the UK's defense budget.

The Prime Minister had to abandon most of his proposed welfare changes due to a rebellion from Labour MPs in the backbench earlier this year. In a humiliating retreat, he abandoned his plans – which were expected to save £5 billion annually – and introduced new measures that some critics argue will lead to higher expenses.

Lee Anderson, who serves as the welfare spokesperson for Reform UK, stated that young individuals are being "left to deteriorate." He remarked, "This country has a strong history of being a nation of workers, but this Government is transforming us into a society of slackers."

Shadow welfare minister Helen Whately stated: 'Due to Labour's actions, this outbreak of unemployment threatens to trap an entire generation in a life dependent on benefits.'

Labour claimed they would assist young people in securing employment, yet they are taking the opposite approach. Opportunities for youth are becoming scarce. Labour's mix of inefficiency, welfare dependency, and unemployment is causing a crisis in Britain.

CSJ policy director Joe Shalam stated: 'The Prime Minister is correct in highlighting that a million unemployed young people represents a moral and economic crisis. However, without ministers addressing the challenge of welfare reform, Britain risks losing an entire generation.'

A government representative stated, "For too long, too many young individuals have been lacking the skills, assistance, and chances required to thrive in their careers. That is why we are allocating £45 million to the Youth Guarantee pilot program, ensuring that each young person is either earning or engaged in learning."

This complements changes to the welfare system, which address the harmful incentives that keep people unemployed by adjusting Universal Credit, along with £3.8 billion allocated for job assistance and the growth of mental health services.

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