Youth Unemployment

Jim Shannon Excerpts

Wednesday 28th January 2026 Commons Chamber

[Sarah Olney]

One of my big concerns is that, for our economy, we are not getting that pipeline of young people into those entry-level jobs. That threatens our future sustainability and growth, as well as imperilling the prospects of those young people who cannot gain a role.

Those students also expressed their concerns about artificial intelligence replacing many professional jobs, making the skills that they are learning surplus to requirements for many employers. As the Government look to promote public sector efficiency through using AI, many young people are worried that that will mean even fewer jobs for them.

[Jim Shannon (Strangford) (DUP)]

I always try to be constructive with my interventions and comments. In Northern Ireland, youth unemployment is at 7.3%, but here it is more than double that at, I think, 15.4%. Does the hon. Lady agree that we should look at success stories in this United Kingdom of Great Britain and Northern Ireland where youth unemployment has reduced by so much? In Northern Ireland, we focused on young Protestant males from 12 to 18 who could not get jobs, and reduced the unemployment rate. If we can do that in Northern Ireland, I am quite sure that we could do the same on the mainland. Does the hon. Lady agree that we should look at that?

[Sarah Olney]

The hon. Gentleman always makes constructive interventions. He is absolutely right that we need to look at what works. We need to focus on this issue not just for the health and benefit of our young people but for the economy as a whole.

Although we should continue to invest in technological breakthroughs, I am concerned that the Government do not have a strategy for our young people who could be pushed out of the job market by automation. I would be grateful if the Minister responded to that.

There is also a lack of alternatives for young people who wish to upskill, as the apprenticeship pathway is so limited. Businesses tell me that the apprenticeship levy does not work, despite the Government’s attempts at reform. The Liberal Democrats have long called for reform to replace it with a wider skills and training levy, which would give businesses real flexibility about how they spend the money to train their staff and, consequently, provide young people with a better avenue to enter the workforce. The decision taken to defund level 7 apprenticeships for over-22s risks limiting those opportunities. In 2024-25, 51% of all apprenticeship starts were for those aged 25 and over. That is a critical skills pipeline in areas that are key to economic growth, and while the economy is changing so rapidly, we need to provide opportunities for older workers to retrain so that they can continue to find meaningful work later in life.

The Liberal Democrats would fix the skills and recruitment crisis by investing in education and training, including the availability of apprenticeships and career advice for young people. The current system needs to be reformed. That would include boosting the take-off of apprenticeships by guaranteeing that they are paid at least the national minimum wage from the first year, creating new lifelong skills grants for adults to spend on education and training throughout their lives, and expanding vocational training. Although the Liberal Democrats welcomed discussions in the Budget regarding a wider youth guarantee and a growth and skills levy package, I have yet to understand the timeline for implementation. With youth unemployment rising, I encourage the Government to take quick and active steps to deliver that package.