Comment

By Sandy Begbie

The history of previous economic downturns tells us there is almost always a significant long-term impact on young people. Without significant intervention, the coronavirus pandemic is likely to be no different.

Despite some reasons for optimism in recent labour market statistics, youth unemployment is still above pre-pandemic levels despite many sectors warning of labour shortages, suggesting that pre-Covid skills gaps have been accelerated by the pandemic.

Within the statistics, some demographics are more heavily impacted by unemployment and under-employment, such as black and some other ethnic minorities, those with a disability and those from a poorer background.

This is a critical moment – many thousands of young people who are still on furlough face yet more time out of the labour market at the same time as many more will be leaving education after a year or more of significant disruption, to begin looking for work this summer. Those young people furthest from the labour market risk getting stuck out of both education and employment in the long term.

To make matters worse, many of the sectors that traditionally employ more young people have been the hardest hit by the pandemic, such as hospitality, retail and leisure.

The consequences of this environment for young people are far reaching. Recent research by Resolution Foundation highlights a strong correlation between rising job insecurity over the past decade and declining mental health in 18-24 year olds.

Now is a good time for us to take stock of how young people have been affected by this crisis and map out what role they will play in our long-term recovery.

I was delighted to be asked by the Scottish Government to help design The Young Person’s Guarantee with this objective in mind. Its purpose is to drive economic growth by establishing a pipeline of skills and talent that reflect the needs of the modern labour market.

Encouraging employers to back the Guarantee is an important first step in aligning future economic strategy with predicted skills gaps.

There is work to do in other areas too. We must redouble our efforts to create fair work and jobs that provide a living wage and secure hours.

In the financial services sector, we generally offer excellent benefits but we have a challenge to become more diverse and inclusive than we’ve traditionally been. Scotland’s recently announced financial services sector strategy sets out how we will lead by example on inclusion and skills.

We have good foundations in place. Our Unified Schools Programme is inspiring young Scots from all backgrounds to consider the broad range of career prospects we offer, and our Fast Track into Financial Services programme with Edinburgh College and City of Glasgow College is developing new pathways into the sector.

We have an active and growing young professionals’ network to ensure the voice of young people is directly involved in decision-making. They are currently driving a key partnership with SeeMe and SAMH to build our understanding of how to best support mental wellbeing for younger workers.

When it comes to creating good opportunities for young people Scottish Financial Enterprise and its member firms is leading by example.

Collaboration will be essential for us to achieve our aims and we are working closely with national and local government, educators, charities and social enterprises.

I firmly believe that the greatest tool Scotland has at its disposal to deal with fresh global challenges, from technological disruption to climate breakdown, is our young people.

What young people seek is clarity. They want to know what opportunities are available to them and where they can find them. Equipping them with the right skills to take on the world of tomorrow and creating work environments that are fair, diverse and inclusive should be one of our top priorities.

Sandy Begbie is chief executive of Scottish Financial Enterprise and chair of the Young Person’s Guarantee