Rachel Reeves has been accused of failing young people (Image: Getty / PA)
LABOUR has been accused of setting young people up for “failure”, as Rachel Reeves’ jobs tax hammers the UK labour market and creates misery for graduates. A new poll has revealed a stark gloom among Britain’s youngest workers, reflecting growing anxiety about their job prospects over coming years.
Asked by the Adam Smith Institute think tank whether they believe it will be easier or harder over the next five years to find well-paid and satisfying jobs, 60% said they believe they will be harder to find. Just one in four voiced optimism that their work prospects will improve by the time of the next general election, with 14% expecting no change. The widespread gloom about the labour market was shared by respondents from every region, with a whopping 71% of young people in the East Midlands saying they believe finding good jobs will be more difficult.
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Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
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Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
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Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
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British standard of living blow: Labour IS to blame says Bank of England
Rachel Reeves thinks tax hikes will fix her ￡51bn black hole - here's why they won't
Bank of England slashes interest rates to lowest point for over 2 years
Rachel Reeves causes fresh confusion over inheritance tax changes
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Savings allowances explained as Rachel Reeves approves tax crackdown
Rachel Reeves dealt another huge blow after jobs alarm - 'taxed out'
Only one tax will help Rachel Reeves plug her Budget black hole - but it will destroy her
Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Rachel Reeves faces new tax headache - problem is 'worst it's been for three years'
Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Bank of England base rate could plummet to 2.75%
Top 45% tax rate now hitting Middle Britain
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
Rachel Reeves issued major warning by business bosses over jobs
British standard of living blow: Labour IS to blame says Bank of England
Rachel Reeves thinks tax hikes will fix her ￡51bn black hole - here's why they won't
Bank of England slashes interest rates to lowest point for over 2 years
Rachel Reeves causes fresh confusion over inheritance tax changes
Rachel Reeves threatens pensions by using employee savings for 'government agendas'
Rachel Reeves looks to Bank of England for help as unemployment rises and economy stalls
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Students are left applying for over 100 jobs before landing their first career step (Image: Getty)
Shadow Chancellor Mel Stride laid the blame directly at Rachel Reeves’ door, warning that her hike to employers’ National Insurance Contributions in last year’s Budget has caused a jobs market stagnation.
Mr Stride warned: “We should be sending a message to young people that if you work hard, save and do the right thing, the system is on your side – that means more opportunities, lower taxes, home ownership. At the moment they can see no prospect of any of that.”
“Young people need hope for the future. But at the moment, they can see a stagnant jobs market and a government intent on piling up debts for the next generation. Measures like the Jobs Tax and new employment regulations will hit younger workers the hardest.”
As well as Rachel Reeves’ jobs tax which is already having an effect on the economy, there are widespread fears about how Artificial Intelligence is reshaping the jobs market at a rapid pace, with top firms switching to the cheaper tech alternative to carry out swathes of jobs previously done by humans, including in HR and accounting.
Richard Tice, Reform UK’s deputy leader, said the poll was proof that Labour is failing both young and old Britons equally.
He told the Express: "This should come as no surprise. Labour has tanked the economy and set this country up for failure.
“Not only is Rachel Reeves failing our elderly, as they face having their pensions taxed for the first time, Britain’s youth are now also in a dire situation. Jobs are scarce, wages are stagnant, yet the cost of living and taxes continue to rise.
“The United Kingdom needs full-scale economic reform. We need leaders with real business experience – those who will prioritise cheap energy and incentivise growth.”
Mel Stride said Ms Reeves' NICs hike will hit youngsters hardest (Image: Getty)
His criticism came as it was revealed the basic full state pension will breach the personal income tax allowance for the first time in April 2027.
Ms Reeves also took huge political damage over last year’s decision to take Winter Fuel payment off all but the poorest pensioners, sparking outrage and an eventual costly u-turn in June.
This paper was told by numerous young people how difficult finding their first job has been, with many taking on thousands of pounds of student debt believing it would help their career prospects.
Joseph, a 27-year-old who graduated during the first year of the pandemic, said he was made redundant last year as a result of his company needing to find cost savings, and has been searching for a new job since January.
He explained each job is seeing enormous levels of applications, including those with masters and PhDs trying to nab vacancies offering just ￡30,000 a year.
“Most you never even hear back from. I'm very open to what I do, and really want to work, it shouldn't be this hard!”
According to data from the House of Commons library, between February and April this year more than 625,000 young people aged 16-24 were unemployed, up by 42,000 on the previous year.
The youth unemployment rate has also risen from 13.6% to 14.3%, with unemployment among recent graduates hitting its highest level in over a decade excluding pandemic years.
The number of vacancies being advertised has fallen by 33% compared to last year, a seven year low.
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Peter, a father from outer London, said his 18-year-old son had tried to find a job on Oxford Street during his gap year and failed to find a single vacancy.
He compared the lack of entry level jobs at shops, super markets and restaurants to when he was a teenager, saying they are now taken by adult-aged foreign workers.
Oliver, a recent student, said he had to apply for nearly 100 graduate jobs before finally securing his first step on the career ladder.
“I have mates who are really struggling, the market is truly awful at the moment”, he added.
Emma Schubart, Data & Insights Manager at the Adam Smith Institute, said: "With 60% of young Britons fearing a shrinking job market, it's clear that years of economic stagnation have robbed them of the belief that hard work will lead to meaningful employment.
“The stark ethnic divide in these concerns underscores how deeply inequality has embedded itself within our youth, leaving many to wonder if their ambitions will ever be rewarded in an economy that has been hijacked by horrendous policies which punish this country’s youth.”
A Government spokesperson said: “Every young person should have the chance to thrive but currently there are nearly a million young people locked out of the system who are being written off.
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Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Bank of England base rate could plummet to 2.75%
Top 45% tax rate now hitting Middle Britain
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
Rachel Reeves issued major warning by business bosses over jobs
British standard of living blow: Labour IS to blame says Bank of England
Rachel Reeves thinks tax hikes will fix her ￡51bn black hole - here's why they won't
Bank of England slashes interest rates to lowest point for over 2 years
Rachel Reeves causes fresh confusion over inheritance tax changes
Rachel Reeves threatens pensions by using employee savings for 'government agendas'
Rachel Reeves looks to Bank of England for help as unemployment rises and economy stalls
Rachel Reeves abandoned as BoE ducks big rate decision - now she's doomed
Savings allowances explained as Rachel Reeves approves tax crackdown
Rachel Reeves dealt another huge blow after jobs alarm - 'taxed out'
Only one tax will help Rachel Reeves plug her Budget black hole - but it will destroy her
Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Rachel Reeves faces new tax headache - problem is 'worst it's been for three years'
Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Bank of England base rate could plummet to 2.75%
Top 45% tax rate now hitting Middle Britain
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
Rachel Reeves issued major warning by business bosses over jobs
British standard of living blow: Labour IS to blame says Bank of England
Rachel Reeves thinks tax hikes will fix her ￡51bn black hole - here's why they won't
Bank of England slashes interest rates to lowest point for over 2 years
Rachel Reeves causes fresh confusion over inheritance tax changes
Rachel Reeves threatens pensions by using employee savings for 'government agendas'
Rachel Reeves looks to Bank of England for help as unemployment rises and economy stalls
Rachel Reeves abandoned as BoE ducks big rate decision - now she's doomed
Savings allowances explained as Rachel Reeves approves tax crackdown
Rachel Reeves dealt another huge blow after jobs alarm - 'taxed out'
Only one tax will help Rachel Reeves plug her Budget black hole - but it will destroy her
Rachel Reeves has the cheek to say she's fixed the economy - she's smashed it to pieces
Labour has stopped doing one thing - it's bleak clue as to where UK is heading
Rachel Reeves warned against stealth tax raid on pensioners and workers to fill black hole
Rachel Reeves faces new tax headache - problem is 'worst it's been for three years'
Kemi Badenoch warns Keir Starmer over income tax raid to fill ￡51bn blackhole
Bank of England blames bad weather and Rachel Reeves for soaring cost of food
Bank of England base rate could plummet to 2.75%
Top 45% tax rate now hitting Middle Britain
Britain's 'midlife crisis' leaves our over-50s on scrapheap - 'urgent action needed'
Rachel Reeves issued major warning by business bosses over jobs
British standard of living blow: Labour IS to blame says Bank of England
“We are determined to change that, which is why our Youth Guarantee will give all 18-21-year-olds the chance to earn, study or learn new skills.
“Eight youth trailblazer areas are live across the country – including in the East Midlands – to identify those most at risk of falling out of education or employment and match them to opportunities.
“As well as this, we’re making sure young people get the right support now, from better mental health services to proper careers advice, so that everyone has the chance to succeed in life.”
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