Post Haste: Why can't young Brits find work?

The UK is facing a notable rise in youth unemployment, with the rate for under-24s reaching 16%. While it's tempting to blame the rise of AI for automating entry-level jobs, the data shows that the steepest employment drops are in sectors like retail and hospitality—industries with the lowest exposure to AI.

The real threat to youth employment is hiding in plain sight: the spiralling cost of hiring. The minimum wage for young adults has risen drastically, and recent hikes to employer National Insurance contributions have compounded the burden. After accounting for inflation, hiring a young worker costs about a third more in real terms than it did before the pandemic.

Outside of London, where wages are naturally lower, employers have almost no room to absorb these increases. As a result, businesses are cutting hours, stopping hiring, or closing entirely, effectively kicking the bottom rung out of the employment ladder for an entire generation.