A few rather dangerous things seem to be coming together at the moment. Not long ago, I wrote about the challenges faced by the younger generation. As a result of Covid, educational attainment has fallen behind across the world, and social skills have also taken a hit. Prolonged isolation and disruption of normal routines have left many struggling to catch up, both academically and socially. These setbacks are becoming a serious issue for the future of this generation and their employment prospects.
Actually, England has held its ground and is even moving up in global rankings, though this is largely because it hasn’t worsened. The Scottish, on the other hand, because of “progressive” child-centric policies have sadly fallen down the world rankings. As a result, the generation that went through school during the pandemic (perhaps there will be a name for them, but for now, I will call them the Covid generation) faces disadvantages in the workplace in terms of both social skills and educational attainment.
The new Labour government is planning to make significant changes to wage and employment policies. They intend to remove the lower levels of the minimum wage, which would bring younger people up to the same rate as those in higher age brackets. Young workers could earn the same as their older counterparts, regardless of age. They also aim to improve immediate employment rights by giving new workers the same protections and entitlements as those who have been employed for longer and have already proven their worth in the job.
Both activities clearly have a significant cost on our industry. Another increase in the minimum wage will inevitably add a substantial financial burden. This will undoubtedly affect our bottom line. Additionally, the plan to bring forward employment rights will make it increasingly difficult to manage underperforming employees. It will not only make it harder to let go of those who are not meeting expectations but will also drive up our HR costs.
However, I am not sure that any financial argument will have much of an impact on a government that is so firmly focused on its mission. Perhaps, then, our worries and arguments will end up seeming parochial and irrelevant in the grander scheme of things. The government’s determination to push through its agenda may well overshadow any industry-specific concerns, no matter how valid or pressing they may seem to us.
What I do think will matter, though, is youth unemployment. We are currently at a time when youth unemployment has been rising again. Over the last 12 months, it has increased from 11.4% to 13.9%, according to the Office of National Statistics. Additionally, the economic inactivity rate for young people has also been climbing, going from 38.8% to 41%. These statistics are the most concerning for our country, as it seems to me that the greatest risk to society is when young people fail to develop a work ethic in this crucial phase of life, whether after school or university. This, in my view, is the real measure of a government’s success—not just whether people are paid enough when they work or how many rights they have.
As an industry, we should be campaigning hard for young people because we are one of the key recruiters and one of the main developers of skills for 16- to 24-year-olds. As I sit here on a beach holiday, surrounded by Irish staff, I am reminded that the option for European summer employment has also largely disappeared. We need to make a strong case for our industry’s role in helping the Covid generation become an asset to the country. But we also need individual incentives. Without them, employing young people will become a last resort rather than a priority.
Funnily enough, one of our customers, a highly successful businessman, recently suggested that his 16-year-old daughter should get some work experience at one of our pubs this summer. He clearly understands the importance of her gaining real-world experience to help her grow and develop essential skills. Of course, we will ensure that everything is done within the bounds of legislation, but we will make it work. It is a perfect example of how important it is for young people to engage in the workforce early on.
But our real objective, as a country and an industry, should not be to fail the covid generation a second time be not letting them work. Food for thought.
