Institute for Employment Studies

ALT With fiscal headroom remaining tight, the Chancellor has limited room for major new spending. The Budget is more likely to signal direction than deliver reform, with the Milburn and Timms reviews still to come.

ALT Inclusion should be understood as an organisational capability: the ability to harness difference without allowing it to erode trust, collaboration or collective purpose.

ALT “Young people are bearing the brunt of a weak labour market. Around 1.3 million 16- to 24-year-olds are now not in work or full-time education, highlighting the urgent need for effective support to prevent long-term scarring effects. The share of 16- to 24-year-olds who are not in employment or full-time education remains close to a 13-year high, following increases in unemployment and economic inactivity.”

ALT “The UK labour market remains flat. There has been little movement in the headline employment, unemployment and inactivity rates over the last quarter. Payrolled employment continues to fall, with the largest falls in the last quarter in retail and hospitality. Vacancies have also continued to fall and are at their lowest level since 2021. Beneath the headlines, youth unemployment remains at its highest rate in more than a decade. With the Alan Milburn review due to report on solutions, our research emphasises the importance of investing in trusted relationships, tailored support and effective pathways for young people to improve long-term employment outcomes.”