Rachel Reeve’s speech at the Labour Party Conference in September, confirmed a new Government initiative – the ‘youth guarantee’ to help get young people back into work.
In this blog, we explore what this policy might mean for employers and what they could learn about the future of the workplace.
What is the ‘Youth Guarantee?
The Government has explained that the youth guarantee aims to end long-term youth unemployment by offering paid work placements to every young person who has been out of work or education for 18 months (coupled with a pledge to ensure that every young person will be guaranteed either a place in a college, or an apprenticeship, or to one-to-one support to find a job). Those who refuse a paid work placement without good reason could see their welfare benefits withdrawn.
This initiative is part of the Government’s Plan for Change and also appears to build on their plans to ‘Get Britain Working’, which we wrote about earlier this year and which is aimed at getting people into employment.
The Government explains that ONS figures published in May 2025 revealed that the number of young people not in education, employment or training, stood at 987,000. Youth Employment UK, highlights that “the youth unemployment landscape in the UK remains a growing problem for employers, educators, policy makers and young people.” It cites that in the last four years the issue has become “more complex than ever, with the impact of the pandemic, disruption to education and the rising cost of living.” Youth unemployment causes include, lack of skills, education and employment gaps, lack of vocational pathways and perceptions of young people during recruitment.
Current Trials
At present, the UK Government is testing its new youth guarantee through eight pilot schemes across England, with a £45 million backing, which are focused on those aged 18–21 who have been out of work or education for 18 months or more, aiming to give them a clear pathway back into training or employment. Localised schemes appear to be addressing different perceived regional issues to the issue of youth unemployment, for example in the West of England participants are receiving free bus travel as the issue of getting to work (and its cost) is seen as a key barrier to accessing job interviews. In Tees Valley, 18-21 year olds are being urged to sign up to paid work placements or non-paid work taster sessions to explore career options. Other scheme providers are providing career coaching and work placements.
The pilots are designed to show what works, which local systems can best support young people, and which organisations are most effective at delivering targeted help. They are the testing ground for a strategy that could reshape how long-term youth unemployment is tackled with a plan to expand the program nationally in 2026/27.
How Could this Policy Impact Employers, and What Does it Signal About the Future of Work?
Many of the options within the youth guarantee will require some sort of employer participation – and there is no certainty that this is achievable. With job vacancies at their lowest since the pandemic and companies dealing with rising employment costs, employers may struggle to create or accommodate paid entry level or junior roles where significant training or upskilling is required. On the other hand, the youth guarantee programme may also present opportunities for employers who take part in the scheme to access Government-backed talent pipelines whilst enhancing social credentials and strengthening community ties.
However, looking beyond the scheme itself, and regardless of where the scheme ends up, employers could learn something from this about planning for their future workplaces. The scheme seeks to highlight the challenges being faced by those entering the employment market such as labour market saturation, the long-term affects of Covid (including to mental health), a longer-working workforce and perceived skills gaps. In addition, from baby boomers to Generation Z, each new generation brings different values and approaches to the workplace. It is predicted that by as soon as 2030, 74% of the workforce will be comprised of Millennial and Generation Z workers. And perhaps historic or traditional career routes, opportunities and progression will not necessarily be the future of work. For example, in a recent survey, only 6% of Generation Z say their primary career goal is to reach a leadership position and so traditional career paths may need to be reconsidered. Employers also have the added complexity of the rise of GenAI and new technologies, which are impacting the way young people work now and will do so in the future.
As we have discussed previously (see our earlier article here), in the face of all of this potential change, employers could start considering some of these issues within their strategic long term workforce planning. For example, employers may want to:
- Think about different, and creative options for how to grow diverse and sustainable talent pipelines, potentially rethinking hiring through apprenticeships or other in-work training rather than just seeking “job ready” talent.
- Consider their current and future working practices and whether there is scope to design roles with flexibility and accessibility in mind rather than standard linear progression models.
- Consider how inclusivity and skills development or re-skilling or upskilling can shape their long-term workforce planning. If people are going to work 40-50+ years – how can employers plan for longer more sustainable careers?
If you have any questions about the content of this article, please reach out to Natasha Somi.
