Young People Are Our Smartest Investment

We need to value and invest in our young people. Every generation has its hyperbole about young people's poor attitude towards work and fecklessness. It's not a trait I recognise when speaking to young people. I see ambition and a desire to do a good job and get on in their lives.

There are schemes in place for incentive apprenticeships and investment in training, but when times are tough, these areas can often be the first to cut.

The benefits of supporting young people in their careers are clear. A Learning and Work Institute (L&W) report estimated that the shortfall in the UK's skills would cost the economy £120 billion by 2030. There will be over 8.1 million people with traditionally intermediate or low skills and a need for 2.5 million highly trained individuals.

The shortfall is stark, with government data showing an increase in the number of young people aged 16 to 24 years who are not in education, employment or training (NEET), rising to 851,000, up from 831,000 in a year.

The percentage of all young people who were NEET from October to December 2023 was estimated at 12.0%, up 0.2 percentage points from October to December 2022. While the increase in the number of young people who were NEET was driven by young men, among which there was an increase of 37,000 in the year to 467,000.

Companies can take a number of steps to improve youth training and engagement. The first is to see funding this activity as an investment rather than a cost and, in doing so, make the programme more resilient over the longer term.

From our own experience, involving younger people in the design of employment and skills-building programs ensures relevance and effectiveness. This includes conducting needs assessments, enhancing youth voices, and creating ownership for sustainable programs.

Implement mentoring programs that engage employees in mentoring youth, which can significantly increase employee engagement and provide valuable learning opportunities for young individuals. Provide leadership training and opportunities to young people. It's essential to offer them opportunities to develop essential life skills and take on roles within organisations.

Try partnering with other companies in your sector to create workforce development initiatives that ensure young people gain expertise that is aligned with industry needs. Engaging stakeholders early in program design and implementation fosters successful relationships and shared ownership.

Collaborate with organisations to re-engage young people who are out of school and work. By understanding their challenges and working with employers in your area, these young individuals can be provided with opportunities for personal and professional growth.

Of course, the government has a strategic role to play, and it could do worse than take a leaf from Norway's book, where a strategic focus on youth development not only benefits the well-being of its young population but also plays a crucial role in driving economic growth, innovation, and sustainability in the country.

Norwegian initiatives include grants for innovative projects and market-oriented developments, that foster entrepreneurship among young individuals. This support encourages economic innovation and growth driven by the youth.

As Whitney Houston once said, I believe that children are our future, teach them well and let them lead the way.

Mel Hird

Mel Hird is a director and founder of Fresh Thinking Capital.