The Cost of Exclusion warns that youth unemployment is costing the UK economy a staggering £10 million a day in lost productivity. Together with the £20 million-a-week the government pays out in Jobseeker’s Allowance, the young unemployed are costing the UK billions of pounds each year.
The report, based on research conducted by the Centre for Economic Performance, London School of Economics, also reveals that youth crime is costing the UK economy £1 billion every year while educational underachievement costs £18 billion in lost earnings.
It recommends that more investment is needed to help young people in the UK’s deprived communities who are not in employment, education or training (NEET). It argues that helping young people gain the key skills to find work represents value for money given the measurable costs of social exclusion.
Youth crime
Every year an estimated 70,000 school-age offenders enter the youth justice system, costing the UK £1 billion every year.
Educational underachievement
Educational underachievement costs the nation an astounding £18 billion in foregone earnings.
Youth Unemployment
Almost a fifth of young people in England, Scotland and Wales are not in education, training or employment.