The Employment Gap in London : Impetus

Young people from a disadvantaged background in London are not getting the support they need to succeed in the capital’s thriving jobs market. Download the new Impetus report on The Employment Gap in London, commissioned by London Council.

Building on the findings of the first Youth Jobs Gap Report…

This report builds on the previous series of research carried out by Impetus. The first Youth Jobs Gap report, Establishing the Employment Gap, found that, nationally:

• Disadvantaged young people were twice as likely to be out of education, employment and training (NEET) as their better-off peers
• Half this gap could be explained by qualification, and half could not
• The group having low qualifications and from disadvantaged backgrounds were doubly disadvantaged, and most likely to be locked out of the labour market when aged 18-24

What this means in London

This new breakdown of data shows that young people from a disadvantaged background in London are not getting the support they need to succeed in the capital’s thriving jobs market.

Despite the opportunities on their doorstep, young Londoners are more likely to be out of education, employment or training than the national average. This has been a consistent trend for over a decade, suggesting that a new approach to post-16 skills in the capital is long overdue.

The Employment Gap in London examines government education and employment data to provide new insights into those young people who move on from school into education, employment or training, and those who don’t (NEETs).

This new research from the London Councils and Impetus research shows that:

• 25% of London’s young people are low qualified. They’re not getting five GCSE passes or equivalent qualifications by the age of 18, which in turn places them at a higher risk of unemployment.
• London has the lowest take up of apprenticeships of any region. Just 4% of young Londoners started apprenticeships, compared to the national average of 7%.

The Employment Gap in London reveals the extent to which young people from poorer families progress into work varies hugely in London. It provides a powerful rationale for the UK’s skills and employment system to take local issues into account to meet the diverse needs of young people in the capital.

There are successes in London, too – 21% of young people from London going to university are from a disadvantaged background, compared to 9% nationally. In spite of that, in some areas young people have a better chance of getting a job if they’re from a better-off background than if they get good qualifications.

Cllr Georgia Gould, Deputy Chair of London Councils and Executive member for Skills & Employment, said:

“Our new report shows that the post-16 skills system is not doing enough to support young Londoners as they make the leap from school to further study or work. We must address London’s consistently high NEET rates, low participation in apprenticeships and low qualification levels or risk another generation of young people being left behind. This is a wake-up call for everyone involved in London’s skills system, from national Government to London boroughs, local schools and colleges. We need some radical new approaches. London boroughs are well placed to lead the creation of a more flexible local skills offer, but we need the powers and resources to make a real impact.”

Key Recommendations

In order to improve London’s skills system, London Councils is making five key recommendations:

1. Invest in and devolve 16 to 18 skills provision so that London government (London boroughs and the Mayor) can ensure that there is sufficient provision to meet diverse needs and aspirations of young people across different parts of London.
2. Invest in and devolve careers services, so London government can transform the currently fragmented system into a comprehensive and locally responsive service.
3. Increase the flexibility of the Apprenticeship Levy to allow some funding to be used for pre-employment training and in the longer term, devolve apprenticeship funding starting with capital’s non-levy allocation so London government can work with businesses to meet local skills needs.
4. Support the alignment of national Jobcentre Plus and local employment services to allow them to co-ordinate local employment support and achieve better outcomes for young Londoners with the most complex needs.
5. Devolve the UK Shared Prosperity Fund (UKSPF – replacing European Structural and Investment Funds) to deliver specialist programmes for young people facing complex barriers to employment.

Laura-Jane Rawlings, CEO of Youth Employment UK, says:

“Young people from across the UK tell us that they need individual, face to face, quality support to navigate their journeys from education to quality employment. This report shows that localised support is vital and builds the picture of just how challenging young people are finding their transition. London has had its fair share of funding and we still see a huge a disconnect in what is being received, it would be good to see funding outcomes recognise the individual needs.

We are growing more concerned about how networks and social capital (or the lack of) impact young people’s futures. Being better off is a better indicator of progressing than education or any other factor for some young people and for those at a disadvantage, this is just not fair. Something we first raised in our Social Mobility report and we continue to tackle through our free support for young people and our Youth Friendly Employer Mark.”