Amid fears about AI replacing jobs and businesses cutting back recruitment, Chancellor Rachel Reeves has announced a plan to guarantee employment or paid work placements for all young people.
At first glance, it seems like a bold solution to rising youth unemployment—but digging a little deeper raises some serious questions.
Record Youth Unemployment and the Timing Problem
The UK is facing a historic high of 948,000 workless 16 to 24-year-olds.
Reeves’ plan aims to tackle this, but critics point out that the solution seems overdue.
While the intention of offering jobs or placements sounds promising, the timing and practicality remain unclear, leaving many wondering how the jobs will actually materialize.
Economic Realities Complicate the Picture
With businesses struggling under rising National Insurance contributions, higher minimum wages, and expanded worker rights, job vacancies are already shrinking.
Add soaring energy costs, inflation, and further tax hikes, and the likelihood of private businesses fully supporting the scheme seems low.
Only the most opportunistic firms might take advantage of the plan to access cheap labor.
Spending Promises vs. Fiscal Discipline
Reeves emphasized “delivering for working people” at the Labour conference, yet the party’s poll ratings remain low, and her fiscal record is questioned.
While she promises more public investment, she also allows the deficit and national debt to rise sharply.
One in every ten pounds spent by the government goes toward debt interest—so many wonder why spending continues at such a pace.
Who Will Foot the Bill?
Although Reeves hinted at future investments in public services, she did not provide clear answers about funding.
Phrases like “hard choices ahead” and “a Britain founded on contribution” suggest that middle-class savers, homeowners, and higher earners may bear the brunt of new taxes to fund these promises.
Critics argue this reflects a punitive approach to aspiration and financial prudence.
Class Politics and Policy Consequences
There is concern that Labour’s agenda carries undertones of class envy.
After hitting private education with VAT increases, the government is reportedly considering similar measures for private healthcare.
Such moves could push more students into state schools and more patients into already strained NHS services, potentially harming the very systems the policies aim to support.
Lessons from Alice in Wonderland
Much like Alice navigating the illogical rabbit hole, critics suggest Reeves’ promises risk being more fantasy than practical policy.
While the aim of reducing youth unemployment is laudable, the means and funding raise doubts about whether these plans can succeed—or whether they may inadvertently cause further economic strain.