Why it's so hard to be young in Britain right now
- Written by Kausik Chaudhuri, Senior Lecturer in Economics, University of Leeds
If you’re taking the first steps in your career right now, you’re doing so in the face of a high cost of living and an increasingly inaccessible housing market. You may well be facing the reality that you will be worse off[1] than your parents’ generation.
The UK’s youth (15-24) unemployment rate fell from almost 15% in September 2020 to 9% in August 2022, but is now rising again[2] reaching 12.7% in July this year. This is higher than the average for developed economies and much higher than the likes of Germany and Japan[3].
There is also a serious gender disparity – one of the highest[4] among developed countries. The unemployment rate[5] among young males (14.6%) is significantly higher than females (9.8%).
This is even more pronounced in some regions. For example, in the West Midlands, young men are more than two and half times more likely to be unemployed than women. Young men, in particular, have a harder[6] time finding work during tough economic times.
Steps you can take
Almost half[31] of the population aged 16-24 are in financially precarious positions, and many are in debt. The numbers[32] are stark: 50% of those aged 16-18, 75% of those aged 19-21 and 80% of those aged 22-24 are in debt. While a good chunk of this is for study-related loans, it also includes buy-now-pay-later schemes, personal loans and overdrafts.
This speaks to the challenges posed by the cost of living crisis, but also the lack of financial literacy, budgeting and planning habits among young people. According to a recent survey[33] by Compare the Market, only 41% of young people are financially literate.
While it won’t mitigate the wider economic problems, you can take small steps[34] to improve your financial skills by tracking spending, prioritising debts and wisely using credit cards. It is important to be aware of misinformation, including cryptocurrency scams[35] and get-rich-quick schemes[36].
The government could also play a role through compulsory financial education. As the Confederation of British Industry has also suggested[37], there is a need for a national strategy, working with industry and other private sector partners to improve financial literacy and awareness.
References
- ^ worse off (www.ucl.ac.uk)
- ^ now rising again (www.ons.gov.uk)
- ^ Germany and Japan (data.oecd.org)
- ^ highest (data.oecd.org)
- ^ unemployment rate (www.statista.com)
- ^ harder (archive.discoversociety.org)
- ^ This article is part of Quarter Life (theconversation.com)
- ^ Make new friends and become a role model: why you should consider volunteering if you’re in your 20s or 30s (theconversation.com)
- ^ ‘Girl math’ may not be smart financial advice, but it could help women feel more empowered with money (theconversation.com)
- ^ Why young workers are leaving fossil fuel jobs – and what to do if you feel like ‘climate quitting’ (theconversation.com)
- ^ estimated (www.ons.gov.uk)
- ^ apprenticeships (researchbriefings.files.parliament.uk)
- ^ skills gaps (www.oxfordcollege.ac)
- ^ drastically increased (www.telegraph.co.uk)
- ^ crime rate (www.london.gov.uk)
- ^ £38 billion (www.pwc.co.uk)
- ^ youth services (www.gov.uk)
- ^ dual apprenticeship system (www.expatrio.com)
- ^ work for the dole (www.dewr.gov.au)
- ^ dependent on work (www.ons.gov.uk)
- ^ These sectors (www.sciencedirect.com)
- ^ increase (www.ons.gov.uk)
- ^ estimated (www.ons.gov.uk)
- ^ stagnating wages (theconversation.com)
- ^ almost impossible (ifs.org.uk)
- ^ around 33 (www.money.co.uk)
- ^ US and Europe (www.weforum.org)
- ^ lower (www.oecd.org)
- ^ expected (theconversation.com)
- ^ GaudiLab/Shutterstock (www.shutterstock.com)
- ^ half (www.thersa.org)
- ^ numbers (www.thersa.org)
- ^ survey (mybnk.b-cdn.net)
- ^ small steps (www.alanboswell.com)
- ^ cryptocurrency scams (theconversation.com)
- ^ get-rich-quick schemes (theconversation.com)
- ^ suggested (www.cbi.org.uk)
Read more https://theconversation.com/why-its-so-hard-to-be-young-in-britain-right-now-213002