UK Chancellor of the Exchequer Rachel Reeves announced a significant policy commitment to young workers struggling to break into the labor market.
On Monday, Reeves pledged a large investment in the next generation, announcing a “youth guarantee” that promises work, college placement (or a trade apprenticeship) to “every young person.” Reeve’s words come as the UK struggles with high youth unemployment for those ages 16 to 24.
“I commit this Labor government to nothing less than the abolition of long-term youth unemployment,” Reeves said at the Labour Party rally.
As of September, the country’s youth unemployment rate stands at 13.8%—almost three times the overall unemployment rate and more than a 6% increase from a historic low unemployment level of 7.6% for this age group in 2022. Reeves became chancellor in July 2024 after being appointed to the role by Prime Minister Keir Starmer following Labour Party’s landslide general election victory. But, youth unemployment has been on the rise due to a myriad of factors including education disruption from Covid-19, lack of work experience and skills, and cost-of-living pressures.
Reeves said her party is addressing barriers to opportunity through the youth guarantee, which also promises one-on-one support for young job seekers and a paid work placement, education, or training for every young person who’s been out of work for more than 18 months.
