Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 29 December 2015

Wasted youth?

Youth unemployment falling

Not an angle that is likely to get much airtime, I suppose, but between January and November seasonally adjusted youth employment jumped by more than 76,000 persons or 4.3 per cent to 1.86 million.

Which is quite a lot. Quite a big lot! 

And much faster than employment growth as a whole, even in trend terms.

In turn, youth unemployment has also been declining from its November 2014 peak. 

This is a worthwhile trend to watch, not least because those experiencing unemployment in this age range may on average be more likely to join the ranks of the longer term unemployed.

It is also a key metric since when times are turning tough it is likely to be the most inexperienced workers that are shown the exit first (or simply not hired in the first place), and as such rising youth unemployment can act as an early warning signal for troubled times ahead. 

Of course, the youth unemployment as is typical remains higher than the headline rate of unemployment at 5.8 per cent, but by a lower ratio than average.

Hoping to see more of the same in 2016.