The NEET Crisis: Why Government Policy Is Making It Harder Than Ever to Employ Young People
The latest concerns around rising numbers of young people classified as NEET (Not in Education, Employment or Training) should be setting alarm bells ringing across the UK. Yet instead of addressing the root causes of the problem, politicians seem more interested in talking about the symptoms.
From the perspective of many independent garage owners and small businesses, the Government's policies are making it harder, not easier, to create jobs for young people.
For years, the automotive aftermarket has provided valuable opportunities for apprentices, trainees and school leavers looking to build a career. Many of today's successful garage owners, technicians and workshop managers started at the very bottom and worked their way up. However, the financial reality of employing staff has changed dramatically.
Businesses have been hit with significant increases in employment costs, including rises in the National Minimum Wage and National Living Wage, alongside increases in employer taxes and National Insurance contributions. While everyone agrees that workers should be paid fairly, the challenge comes when these rising costs are introduced without considering the pressure already being placed on employers.
When the cost of employing someone rises, businesses have little choice but to increase their prices. Unfortunately, customers are facing the same cost-of-living pressures themselves and often cannot afford those increases. The result is a squeeze on both sides.
The problem doesn't stop there. Garage suppliers are also facing higher wage bills, higher energy costs, higher transport costs and increased taxation. Those costs are inevitably passed down the supply chain, meaning garages pay more for parts, consumables, equipment and services.
It becomes a vicious circle.
Suppliers increase prices because their costs have risen. Garages increase prices because their suppliers have increased prices. Customers cut back because everything costs more. Work volumes become less predictable. Profit margins shrink. And suddenly employing another member of staff becomes a much bigger financial risk than it once was.
This is particularly damaging when it comes to apprenticeships and entry-level roles. Taking on a young person requires investment, training, supervision and time. Most garage owners are willing to make that commitment, but only if they can see a sustainable return. When overheads continue to rise, many simply cannot justify the risk.
Perhaps the most frustrating aspect is the apparent assumption from some policymakers that business owners are among the wealthiest people in society. The reality on the ground is often very different.
Many independent garage owners work longer hours than anyone else in their business. They are the first to arrive and the last to leave. They take responsibility for staff wages, customer satisfaction, compliance, health and safety, cash flow and every other challenge that comes with running a business.
In many cases, they are not the highest-paid person in the workshop. They regularly sacrifice their own earnings to ensure staff are paid on time, suppliers are settled and the business remains stable.
These are not faceless corporations. They are local employers who support families, sponsor community events, train apprentices and keep Britain's motorists moving.
If the Government is serious about reducing the number of young people who are NEET, it must create an environment where businesses can afford to employ them. That means reducing the burden on employers, supporting apprenticeships, encouraging investment and recognising the realities faced by small businesses.
Adding to the frustration is the perception that the current Labour Government is increasingly distracted by internal disagreements and competing voices within its own ranks. If ministers cannot reach a clear consensus on the direction of their own policies, businesses may question whether there is the leadership and stability needed to address the challenges facing the wider economy. At a time when employers are crying out for certainty, support and long-term thinking, many feel Westminster is focused on political management rather than delivering the practical solutions that British businesses and workers need.
The aftermarket has always been ready to provide opportunities for the next generation. The question is whether Government policy will help make that possible—or continue making it more difficult.