Building a future that works for our young people - Emma Reid

A new diagnostic report for the UK Government sets out the reality clearly. More than a million 16-24-year-olds are currently not in employment, education, or training - the highest level in over a decade and around one in eight of that age group. With numbers rising, there is a real risk this could increase further.

Emma Reid, Commercial Director, Edinburgh Chamber of Commerce

This matters, both socially and economically. Youth unemployment and inactivity is estimated to cost the UK economy £125bn each year, but behind those numbers are young people facing real challenges to their confidence, prospects and life chances.

Crucially, the vast majority - around 84 per cent - want to be in work or training but aren’t finding the right opportunities.

Scotland fares slightly better than the UK overall - but not by enough to be comfortable. Youth unemployment here sits at around 10 per cent, lower than the UK average, but still leaving too many young people without clear routes into work or learning.

We, along with the wider Chamber network, welcome the Milburn report. Having made the diagnosis, the second part of the report will provide some potential solutions later in the year.

Meantime, Chamber research has already shown that – despite more than half of businesses facing skills shortages – high employment costs are causing many employers to cut back on recruitment and training, exacerbating the problem.

We have, therefore, called on the UK and Scottish governments to take bold action to improve and properly fund our skills system, to embed employers into regional skills planning and to reduce costs for employers.

Employment, talent and skills have long been a priority for us. This is not only because our members and the wider business community consistently highlight their importance, but because they are issues that matter and that we have a responsibility to support.

For example, during the Covid-19 pandemic we worked with the UK Government on the Kickstart programme, supporting more than 90 businesses to provide placements for over 270 young people.

The Chamber is also home to the Developing the Young Workforce (DYW) team for our city region - a key part of the Scottish Government’s youth employment strategy.

DYW connects employers with young people in schools and ensures that they are aware of local job openings and the educational paths that lead to them.

In the last year, the Edinburgh, Midlothian and East Lothian team engaged 558 employers in DYW activities designed to help prepare young people for the world of work, with more than 40,000 individual interactions.

But given the scale of the current challenge, we need to go further. We’re now working with the UK Government and DWP to deliver the Jobs Guarantee Scheme across Central and East Scotland, alongside The King’s Trust, Glasgow Chamber, Barnardo’s and Action for Children.

This programme gives businesses a practical way to get involved. It offers fully funded six-month roles for young people aged 18–21 who have been out of work for an extended period, alongside pre-employment training and ongoing support to help them succeed and move into sustained employment.

For employers it’s an opportunity to bring in new talent, strengthen their pipeline and support future workforce needs - while playing a direct role in tackling one of the most pressing challenges facing our economy.

We’re encouraging business to get involved. The first phase will support 150 young people across the region and the more businesses that step forward, the greater the impact we can make.

This isn’t just about addressing a short-term issue. It’s about building a stronger, more inclusive workforce for the long term - and making sure that every young person has a fair chance to contribute, progress and succeed.