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Rising UK Youth Unemployment Tests Government Over Wage Pledge

Rising UK Youth Unemployment Tests Government Over Wage Pledge

Post by : Shakul

Britain is facing a sharp rise in youth unemployment, with the jobless rate for people aged 16 to 24 climbing to around 16.1%, its highest level in more than a decade. This surge has raised concerns about the strength of the labour market for younger workers and is putting pressure on the government’s commitment to phase out lower minimum wage rates for young people.

The current government had pledged to eventually pay younger workers the same national minimum wage as older workers, a policy aimed at fairness and boosting earnings for youth. However, critics now argue that sharply higher minimum pay combined with increased employer costs may be discouraging firms from hiring young, low‑wage workers, especially in sectors like retail, hospitality and IT.

Official figures show that low‑paid job vacancies in the UK have fallen more steeply than in some other European countries, reflecting weaker demand for roles typically filled by younger people. Many small and medium‑sized businesses report challenges in meeting wage costs, leading some to cut back on hiring or apprenticeships.

Opposition politicians and business groups are urging the government to reconsider or slow down its wage pledge to support job creation, while experts warn that significant increases in labour costs may be contributing to the youth unemployment problem. The government says it is reviewing evidence and will make future wage decisions with advice from independent bodies.

As the debate continues, the rising number of young people out of work remains a key political and economic challenge for Britain, testing policy choices on how best to balance fair pay with opportunities for entry‑level employment

Feb. 20, 2026 3:55 p.m. 290

#world news #Global News #world

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