Economic woes ‘costing a million jobs among young’

Around a million jobs have been shed since 2007 in the industries that tend to employ the most young people, a study has indicated.

The Trades Union Congress (TUC) has noted there has been a widespread reduction in employment in the areas of construction, manufacturing, retail, finance and catering and hospitality.

Among major losses were manufacturing (down 14 per cent, or 406,000) between the final quarters of 2007 and 2011, while construction dipped 281,000 (12 per cent) and the catering and hospitality sector three per cent (221,000).

The TUC noted the latter sector employs four out of ten workers aged under 25, compared with just one in six older than this.

Only finance and business services have seen a rebound, with an extra 98,000 jobs overall.

And in all these sectors, the rise in incomes was less than inflation over the period, with the TUC noting the Office for Budget Responsibility expects this trend to continue until 2013.

Such factors may all increase debt problems for young people, not least those who have borrowed money and then found they could not cope with repayments after losing a job.

TUC general secretary Brendan Barber said: "A recovery in retail, hotels and restaurants is particularly important for young people as this is where they are most likely to find work. Unfortunately these jobs are heavily dependent on people's disposable incomes and falling wages are forcing people to rein in their spending."

Young people who are struggling with what they owe may find a debt management plan can help to ease their financial burdens.

Philip Coggan, Buttonwood columnist and Capital Markets editor at The Economist, remarked last week that it will take "five to ten years" to sort out the UK's economic situation, something that may indicate those hoping for a major jobs-based recovery will have a long time to wait for it.

By Joe White