Brexit fears could hit efforts to cut youth unemployment

Report into jobless figures reveals large disparities across the regions

YOUTH unemployment is more than twice as high in Dundee than the Highlands according to a report which warns that the uncertainty surrounding Brexit could hamper efforts to get more young people into work.

Young Scots are three times more likely to be jobless than the average working age Scot, a report claims.

The research into youth unemployment found that while the numbers of young people out of work in Scotland fell for the fourth year in a row in 2015, there are significant regional disparities.

In the Highlands, the area with the lowest youth unemployment, eight in every 100 young people were jobless compared to more than 19 per 100 in Dundee, the highest rate in Scotland.

Falkirk has the second highest youth unemployment, at 18.7 per cent, followed by Glasgow on 16.6 per cent.

The biggest employers for the age group were hotels and restaurants, as well and the distribution sector.

Both of these areas are forecast to grow, but the report by Ernst & Young and its charity arm, the EY Foundation, warns that Brexit could exacerbate the problem.

Mark Harvey, senior partner for Ernst & Young in Scotland and a trustee on the EY Foundation Board, said: “Youth unemployment is a major issue for the Scottish and UK economies, which could be exacerbated by a period of weaker economic growth in these uncertain times ahead.

“As such, it has never been more important to create and foster the right conditions for young people to flourish in work, regardless of their home life and background or their private circumstances.”

Mark Gregory, chief economist at Ernst & Young, said industry surveys indicate employers will increasingly seek higher skills from staff while the number of low-skilled jobs in the economy dwindle.

As a result, he said that it was vital that business and government work together to ensure young people are not left behind by a “widening of the UK’s skills gap”.

He added: “A stubbornly high number of young people remain excluded from the labour market and history has shown us that young people are more exposed to economic volatility and industry restructuring than the population as a whole.

“The skills agenda is fast becoming one of the biggest priorities for UK business, with Brexit also likely to impose some restrictions to the free movement of labour in the near future.

“It has never been more important to ensure the UK has the right mix of skills and talent, both nationally and locally, and young people are core to this.”

Maryanne Matthews, chief executive of EY Foundation, which helps disadvantaged young people into work, said paid work experience was key.

She added: “It is imperative that UK employers open their doors to invest in developing the skills of young people.

“By offering paid work experience opportunities to young people, this could lead to jobs for them in the future, reduce unemployment rates and help to address the UK skills gap.”

‘‘ History has shown us young people are more exposed to economic volatility than the population as a whole