Thanks.
'while previous reviews have tended to see the NEET issue mainly through a supply-side lens, this chapter argues that the demand side now matters at least as much: how the labour market is structured, how employers recruit, and how easy or difficult it has become for young people to get a foothold. '
So let's look at the labour market they’re trying to enter.
Small/medium-sized businesses employ around 16.9 million people in the UK, about 60% of the private sector workforce. Small businesses alone account for around 13 million jobs. Tax, NI, and legal compliance are getting absurdly difficult and complex, as well as expensive. The UK is getting more litigous and ever based on rules and legalities.
Large corps absorb HR, legal and compliance costs far more easily than a café, shop, contractor or local firm with a handful of staff.
So, employers have to rely more on temporary contracts and agencies. They automate where they can and avoid taking chances on people who need training.
Business groups have already warned MPs that rising employment costs are making firms less willing to hire younger or less experienced workers. The Federation of Small Businesses say more than a quarter of firms have reduced staff numbers.
We can’t solve this just by blaming young people. If most jobs come from small businesses, and small businesses increasingly feel they cannot afford the risk of hiring, then more young people are inevitably going to end up shut out of work.
What concrete steps can you take to encourage and support SMEs? This requires large step measures. When will government listen to the FSB and small businesses?
The cost, stress, and complexity of compliance are absurd and have become increasingly difficult in the past few years. We need clear routes and structures specifically for small/micro businesses that consider how they are genuinely different from large corps and the public sector, and ensure the system serves them.
Please listen to, and consider, the SME sector!