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Liz Kendall has insisted Labour will make artificial intelligence “work for workers”, promising targeted training and support for those displaced by rapid AI adoption. Labour’s AI Strategy Unveiled Ahead of London Tech Week Speaking from her Whitehall office before the London Tech Week (8‑12 June), Kendall outlined a distinctly Labour approach to AI adoption, contrasting it with what she described as the Conservative government’s hands‑off attitude. Funding Allocation and Target Numbers for AI Training £187 million TechFirst AI training scheme, revised to reach 1 million children. At least 40 % of participants will come from disadvantaged schools. New regional summer skills camps: 60 places in the north‑west and 20 in the north‑east, aimed at NEETs. These pilots are intended to scale up and link participants to apprenticeship opportunities. Potential Effects on Youth Employment and Regional Skills Gaps The initiatives tie into Labour’s Youth Guarantee, which supports young people out of work for 18 months or more, and complement plans for an AI growth zone in the north‑east. By focusing on NEETs, the government hopes to reverse the recent surge past 1 million young people without education, employment or training, a figure highlighted in Alan Milburn’s interim report. What This Means for Britain’s AI Landscape and Labour’s Political Position Kendall argued that AI will create and transform jobs rather than cause mass unemployment, positioning Labour as proactive in shaping technology for the public good. The stance also signals a broader regulatory intent, including possible restrictions on under‑16 social‑media use and tighter oversight of AI chatbots, to differentiate Labour from the Conservatives and appeal to younger voters ahead of upcoming elections.

The Drive to Get Young Neets into the Military Young people looking for employment should “really seriously take a look at the armed forces”, according to the veterans minister, Louise Sandher-Jones. With more than 1 million 16 to 24-year-olds not in education, employment, or training (Neets), everyone that age is aware of how bleak the job market is at present. But not all agree about whether the military is the answer. Personal Experience with the Military Alexandra Williams is from rural Lincolnshire and studied law at a university in Manchester. She went in with the intention of becoming a lawyer, but early on was led to believe that would be impossible. “One of my lecturers was like: you’ve got no contacts, you’re not going to get anywhere,” she says. Looking for opportunities, she joined the local University Officer Training Corps, an army reserve unit that exclusively recruits university students. Criticisms of the Military Recruitment Drive However, various peace organizations have expressed concern that the military is preying upon young people with fewer and fewer options available to them. Emma Sangster is a coordinator at Forces Watch, an organisation that campaigns against militarism in civil society. It is one of 13 peace groups that recently petitioned ministers to rule out conscription, a threat that for the first time in generations seems “very real”. The Data Behind the Recruitment Drive The Ministry of Defence pledged £70m to expand the Cadet Force by 30%; this February it announced it would place military personnel in jobcentres to recruit for the army, aiming for tens of thousands of new recruits. However, Jim Wyke from the Child Rights International Network said the idea that army recruitment – approximately 10,000 under-25s every year – could make a dent to youth Neet figures was “ludicrous”. The Impact on Youth Unemployment In fact, he says, in the under-18 category, recruitment to the army is a net generator of Neets, because the drop-out rate is so high – about 30% in 2022-23 – at the Army Foundation College in Harrogate, where junior soldiers train, compared with 6-15% for under-18s in different types of civilian further education. The Future of Youth Employment Will O’Donnell, a final year SOAS student studying politics and international relations, agrees. In light of how “cooked” his generation is, with fewer than 10,000 graduate jobs available for close to a million university leavers, he says army recruitment “doesn’t plug the gap at all”. “Seeing our friends in the years above struggle in the job market, there is a real sense of doom and gloom about where our career prospects lie. This is a much bigger problem than simply telling people to join the military”.

A shock government‑backed report this week warned of the danger of a “lost generation” of young people in Britain, as the number of 16‑ to 24‑year‑olds not in education, employment or training (NEETs) rose to more than 1 million, roughly 13.5% of the cohort.Rising NEET Numbers Spark Alarm in the UKOfficial UK statistics show that 13.5% of young people are not in work or college, climbing to 15.8% among 18‑ to 24‑year‑olds – nearly one in six. The report, authored by former Labour cabinet minister Alan Milburn, warns that without decisive action the country could see a sustained “lost generation”.Comparative NEET Rates: UK vs NetherlandsUK NEET rate (16‑24): 13.5% overall, 15.8% for 18‑24 year olds.Netherlands NEET rate (15‑29, adjusted): 5.3% last year, consistently below 5% for over a decade.Potential impact: Matching the Dutch rate could move 600,000 more 18‑ to 24‑year‑olds into learning or earning.Why Dutch Vocational Pathways Keep Youth EngagedThe Dutch system centres on three pillars: strong vocational secondary education (MBO), a welfare safety net that prioritises engagement and rehabilitation, and financial incentives for employers. Around 70% of Dutch 16‑ to 19‑year‑olds in upper secondary education attend an MBO school, and 35% of under‑25s later study at technical or professional universities. By contrast, only 22% of UK 18‑ to 21‑year‑olds were on vocational courses in 2024.Technical education is treated as “the foundation of the economy”, with work‑based learning embedded in curricula – many students combine four days of school with one day of on‑the‑job training.Policy Levers Behind the Dutch Low NEET RateThe 2004 Work and Social Assistance Act devolved welfare programmes to municipalities, creating personalised, localised support that addresses mental health and long‑term illness. Local councils provide tailored engagement programmes, subsidised employment, and specialised training, preventing young people on incapacity benefits from falling through the cracks.Employers receive fiscal incentives, such as payroll‑tax cuts and direct subsidies that cover up to 70% of wages for chronically unemployed youth, as highlighted by the Youth Futures Foundation. Rotterdam’s city council, led by Tim Versnel, funds up to 70% of wages for young chronically unemployed people and offers holistic support covering mental resilience, substance‑use treatment, and financial literacy.What the UK Could Adopt to Reverse the TrendTo emulate the Dutch success, the UK might consider:Expanding vocational pathways and integrating work‑based learning into secondary education.Devolving youth‑welfare services to local authorities for more personalised support.Introducing targeted fiscal incentives for businesses hiring young workers, including wage subsidies and tax relief.Adopting a whole‑of‑life approach that combines education, mental‑health services, and financial literacy for chronically unemployed youth.While cultural and structural differences mean a direct copy is impossible, the Dutch experience offers a roadmap for reducing Britain’s NEET rate and revitalising its youth labour market.

The Call for Tax Cuts Wes Streeting has called for national insurance tax cuts for businesses, and for the government to drill for oil and gas in the North Sea. The former health secretary and Labour leadership candidate told the Sunday Times there should be a “targeted reduction” of employers’ national insurance contribution as a way to “actively incentivise” hiring, particularly of young people. The Impact of National Insurance Rate Increase In 2024, the rate of national insurance paid by employers was increased from 13.8% on each employee’s salary to 15%. The starting threshold it applied to was lowered from £9,100 to £5,000. The measure aimed to raise £25bn a year, but businesses said it disincentivised hiring lower-paid and part-time staff. Youth Unemployment Concerns A report this week by the former cabinet minister Alan Milburn said a lack of hospitality jobs was contributing to high youth unemployment in Britain. It pointed to a halving of vacancies in the hospitality industry over the past four years alone. Analysis shows Britain has the third-highest rate of 16- to 24-year-olds who are not earning or learning among rich European countries. The Government's Response Pat McFadden, the work and pensions secretary, suggested he disagreed with this view. Speaking on Sky News on Sunday morning, he defended the government’s record, saying that businesses already did not have to pay employers’ national insurance for workers under 21. The Future of North Sea Drilling There has been a debate within Labour about whether to grant drilling consents for the giant oil and gas fields Rosebank and Jackdaw. Though there was a commitment not to give out any more licences for fossil fuels in Labour’s manifesto, there is a loophole that could be exploited; Rosebank and Jackdaw were given exploration licences by the previous Conservative government. They just need consent to drill. Ed Miliband's Decision Ed Miliband, the energy secretary, is due to make a decision on these oil and gas fields in coming weeks. He, along with the North Sea Transition Authority, have to decide whether the drilling would be consistent with the UK’s climate commitments.

The Government's Response to the Youth Employment CrisisA former chief executive of Marks & Spencer has been appointed as a government jobs adviser in its latest attempt to tackle the growing youth unemployment crisis. Marc Bolland, who oversaw the retail chain from 2010 to 2016, will lead a summit of business leaders, amid warnings that the country risks a "lost generation" without urgent intervention.The Scale of the Youth Unemployment ChallengeAbout 1 million people aged 16 to 24 – about one in eight – are not in education, employment or training. An interim report published by the former health secretary Alan Milburn warned that this cohort – known as Neets – could increase to 1.25 million by the 2030s without radical action. The proportion of Neets in the UK is significantly higher than in many other developed countries. In the Netherlands, about 5% of 16 to 24-year-olds are not in education or work, while it is about 12.5% in Britain.Bolland's Role and StrategyIn light of Milburn's findings, Bolland has been appointed as lead non-executive director at the Department for Work and Pensions (DWP), Downing Street said. Bolland, who also led supermarket Morrisons, is understood to have been chosen for the role thanks to his existing involvement with the DWP via his charity Movement to Work. The government said a collaboration with Movement to Work had already helped more than 200,000 unemployed young people find jobs.Economic Impact of Youth UnemploymentThe economic cost of the crisis is estimated to be about £125bn. Milburn's report found that six in 10 young people have never had a job, compared with four in 10 in 2005. He said that an increasing number of young people were being ruled as unfit to work due to health conditions including anxiety, depression and neurodevelopmental conditions. However, it is estimated that for every £25 the government spends on benefits for young people, it devotes just £1 to helping them find work.Focus on Vulnerable GroupsA central part of Bolland's role will be to work with charities supporting disabled young people to ensure they have access to training and employment opportunities. Almost half of those who claim a health or disability benefit before the age of 24 are still unemployed or not in education a decade later.Future Outlook and CollaborationThe government said Bolland would work with "leading chief executives across sectors" to "create clear routes into work and tackle the longstanding challenge of youth unemployment." It added that he would also advise the work and pensions secretary, Pat McFadden, on how the government should respond to Milburn's findings. McFadden said that Bolland's appointment sent a "clear signal" that the government was "serious about tackling that challenge" of youth unemployment. Bolland said he was "honoured and passionate" about working with the government, adding: "I know that working hand in hand with business to support young people gives them the best possible chance of success."

The Milburn Review: A Warning on the 'Instability of Worklessness'A government-commissioned review has warned that the UK is facing a critical juncture where youth unemployment is directly fueling a surge in homelessness. The report highlights that without immediate intervention, the number of young people not in education, employment, or training (Neet) could rise by 25% to 1.25 million by the early 2030s, pushing a generation into unstable housing.Rising Numbers: The Statistics Behind the CrisisThe Milburn Review identifies the 'instability of worklessness' as a primary driver of this social crisis. It notes that the third consecutive year of rising youth homelessness figures—reaching nearly 124,000 in 2024-25—signals a systemic failure in the safety net for young people.Neet Projection: Potential rise to 1.25 million by early 2030s.Homelessness Rise: 6% increase in youth homelessness in 2024-25.Regional Impact: North-West saw a rise of more than a third.Big Issue Vendors: 60% increase in vendors aged 18-24 since 2022.The 'Experience Trap' and the Scarcity of Entry-Level JobsThe data reveals a grim economic landscape for the UK's youth. The youth unemployment rate stands at 14.7%, its highest level in over a decade. The UK ranks third among wealthy European countries for this demographic. Furthermore, the Big Issue reported a 60% increase in vendors aged 18 to 24 since 2022, jumping from 449 to 720 individuals.The crisis is exacerbated by a 'catch-22' where young people cannot gain the experience needed for jobs because entry-level opportunities are scarce. Personal testimonies from individuals like Josh, who applied for over a thousand jobs, illustrate the psychological toll of rejection and the financial desperation that leads to homelessness. Charities argue that the narrative blaming young people ignores the structural lack of work opportunities.Future Outlook: Breaking the Cycle of Youth HomelessnessUnless the government intervenes to create more entry-level positions and address the housing shortage, the UK risks normalizing youth homelessness. The projection of 1.25 million Neets suggests that without a pivot in policy, the next decade will see a permanent increase in the number of young people locked out of the workforce and the housing market.

Rising rates of youth unemployment have created a split at the top of government over how fast it should meet its promise to give young people the full minimum wage.The Manifesto Promise vs. The Reality CheckPeter Kyle, the business secretary, is understood to believe now is not the time to give 18- to 20-year-olds the full minimum wage, which Labour promised to do in its manifesto. Others believe there is little evidence to show that recent pay rises for low-paid workers have had any effect on unemployment.Torsten Bell, a Treasury minister, told the BBC on Friday morning: “If you look at what the Low Pay Commission said in their annual report, they didn’t find evidence that previous increases in the minimum wage for young people had had an effect on their employment.”The £125bn Cost of InactionThe splits have emerged following a landmark government-backed report this week by the former Labour minister Alan Milburn, who found that youth unemployment was costing Britain more than £125bn a year. Milburn’s report revealed the number of young people not working or studying had surpassed a million for the first time in more than a decade, prompting calls to reduce the pace of youth minimum wage increases.Current Youth Rate: £10.85 (up 8.5% this year)Main Minimum Wage: £12.71 (up 4.1% this year)NEETs (Not in Education, Employment, or Training): Over 1 millionThe Hospitality Sector DilemmaMilburn himself told the News Agents podcast this week: “To get the jobs there for them, you’ve got to make sure the employers are willing to take the risk. If you’re in, say, the hospitality sector or the retail sector, margins tend to be very low. These tend to be sectors that were really badly hit by the cost of living, hospitality in particular.”Tony Blair, the former prime minister, warned in an essay this week that policies such as increasing the minimum wage – which he brought in – had created “headwinds, not tailwinds, for businesses.”The October Low Pay Commission VerdictLabour promised in its manifesto to equalise the rates of the minimum wage for 18- to 20-year-olds with those of workers who are 21 and over but did not say how quickly this would be achieved. Bell said on Friday: “We’re committed to our manifesto that we stood on and we will deliver it. But that manifesto did not set out the timeline.”While he and others in the government believe they should slow down the pace of rises in youth rates of the national minimum wage if there is evidence that it has an impact on employment, they do not yet believe that evidence exists.The commission will tell the government in October what it is recommending for the financial year starting on 1 April 2027; some in government privately hope it will give a recommendation significantly lower than this year’s. Earlier this year ministers even changed their guidance to the LPC to reflect the concerns in government over unemployment among young people, telling it to prioritise employment rates instead.

The Tragic Consequences of the Exam Leak In the Jhunjhunu district of India's western Rajasthan state, Rajesh Kumar sat staring at a chemistry book in his tin-roofed shed, once mastered by his son Pradeep. Pradeep, 21, had spent years preparing for the NEET, one of the world's largest medical entrance examinations, but took his own life after the exam was cancelled due to a paper leak. The Exam Details and the Leak Nearly 2.3 million test-takers across India and at examination centers in Doha, Dubai, Singapore, and Kathmandu appeared for the NEET on May 3. However, allegations of a paper leak flooded social media, and the Indian government announced on May 12 that the examination had been voided, and another test would be held later. Four students who appeared for the exam died by suicide. Pradeep had scored more than 650 marks, enough to secure a seat in a government medical college. The Data Analysis The National Testing Agency (NTA), which conducts most of India's major central entrance examinations, including the NEET, has remained under scrutiny in recent years over repeated allegations of irregularities and paper leaks. The NTA operates with limited resources, including just 22 employees on deputation, 38 contractual staff members, and 138 outsourced workers. Experts say the agency has been stretched beyond its capacity and is struggling with limited resources. The Impact Analysis The paper leak controversy has deeply shaken students and severely affected their morale. Many are left in shock and struggling to regain focus. Students and their families are demanding justice and reforms. States ruled by governments in opposition to Prime Minister Narendra Modi's Bharatiya Janata Party have urged the federal government to abolish NEET and allow states to conduct their own medical admission processes. The Prediction The upcoming NEET examination, now scheduled for June 21, will be conducted with stronger security measures and greater transparency. However, students and their families remain skeptical about the system's ability to prevent future leaks and irregularities.

The Crisis Facing Young People in the UK Alan Milburn's report paints a grim picture of the lives and chances of young people in the UK. The diagnosis is dire, with over 1 million young people not in work, education, or training (Neets), and this number expected to rise to 1.25 million without radical change. The Extent of the Problem Milburn's report reveals a catastrophic failure in the support systems for young people. There has been institutional neglect, loss of youth and careers services, and chaotic communication between dislocated silos. The result is a 'moral crisis' that requires a 'big idea' and a 'system reset'. The report highlights that: 1.6 million first-rung jobs have vanished in the past 20 years. There has been a 35% fall in apprenticeship starts in the past decade. 60% of Neets have never had a job before. The Impact on Young People's Lives The report captures the misery of young people applying for jobs, facing rejection, and struggling with mental health issues. Many young people are eager to work or pursue apprenticeships, but face significant barriers. For example: 84% of those surveyed wanted to work or do an apprenticeship. 19% wanted to enter education or training. 15% have degrees. 30% have five good GCSEs or equivalent. The Way Forward Milburn's report calls for a comprehensive overhaul of the systems failing young people. He criticizes the current education system, which prioritizes exam results over outcomes and destinations. He also highlights the need for better support for young people with troubled families or poor mental health. The report's recommendations are expected to be released in a future publication, just before the Labour conference. A Call to Action for Labour The report presents a challenge to the Labour party to take action and address the crisis facing young people. As Labour strives for renewed purpose, Milburn's report provides a roadmap for change. The government is urged to ignore previous interventions, such as Tony Blair's recent essay, and instead focus on implementing the recommendations outlined in Milburn's report.