Youth unemployment in England rose to a record high in the final quarter of 2025, serving as a warning that the Jobless Generation era is approaching.
England's Office for National Statistics reported that youth unemployment hit a record 16.1% in the last quarter of 2025. Economists attribute this to "increased labor taxes" and "rises in the minimum wage," signaling that the Jobless Generation era is imminent.
Restaurants and retail stores have stated that "hiring young employees is a cost too high for them to bear." Experts warn that such comments reflect interference by the Ministry of Labor in raising minimum wages, which will only worsen hiring decisions.
Resolution Foundation revealed that this is the first time England's unemployment rate has surpassed the European average, with Europe currently averaging 14.9%, while England stands at 16.1%—the highest since 2000.
A labor union representative warned that over 45% of 24-year-olds in England who are neither in education nor employed, and have never been employed, are being left behind. This is attributed to the current government's ineffective actions, dubbed the "Zombie Government," meaning a government that is powerless despite being in office and unable to anticipate or plan for future problems.
"Labor tax increases," "economic insecurity," and "employment laws" have all contributed to rising unemployment in England since 2022, with a sharp increase in 2024. Data shows unemployment among workers under 34 rose by 242,000, while companies increasingly hired those over 35 by 71,000.
Economists note that raising the minimum wage for 18- to 20-year-olds to 10 euros per hour narrows the wage gap between young and older workers, making inexperienced hires costlier for companies. Additionally, rapid growth in artificial intelligence (AI) is expected to play a major role in the labor market. They urge the UK government to recognize the worsening youth unemployment problem.
Recent data shows most companies now hire with contracts that exclude annual bonuses, indicating a weakening labor market adjusting to economic conditions.
Meanwhile, the government argues these changes represent challenges they must overcome to fulfill their election promises.
.Source:The Sun
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