Building the future workforce: rethinking how employers engage young talent

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Nearly one million young people in the UK are not in education, employment, or training. Youth unemployment stands at 16% – up 99,000 in a single year – and 44% of NEET young people are outside the benefits system entirely, beyond the reach of mainstream support.

These figures represent early careers that have not started, skills that have not been developed, and a workforce that employers will need but cannot currently access.

The changing reality of hiring young people

Traditional entry routes into work are shrinking. Retail has shed more than 360,000 jobs over the past decade and entry‑level vacancies are at their lowest level since 2021. For many young people, even the first step onto the employment ladder is now hard to find.

Alongside long‑term sector decline, technology is adding further pressure. Automation and AI‑enabled self‑service are reducing the volume of junior roles that once helped young people build confidence and workplace skills. The issue is not technology itself, but the loss of natural starting points for early careers.

Despite this, ambition remains high. The King’s Trust Youth Index 2025 shows that while one in six young people have faced more than 50 job rejections, 70% remain committed to their goals. What is missing is not motivation, but access to experience, confidence‑building, and practical routes into work.

Health has become a decisive constraint. Young people aged 16 to 34 with mental health conditions are 4.7 times more likely to be economically inactive, while health and employment support continue to operate in parallel rather than as a single system, despite growing recognition of the value of earlier, joined‑up intervention.

Why this matters for workforce planning

The workforce pressures many employers see as future risks are already here. Time-to-hire exceeds 40 days and the cost per hire is over £6,000. With the National Living Wage rising to £12.71 for those aged 21 and over, and £10.85 for 18 to 20-year-olds as of April 2026, employers need early-career hires to contribute and progress quickly.

As entry‑level supply tightens, employers increasingly compete for experienced workers rather than developing talent from the ground up – a costlier and less sustainable approach.

Many of today’s leaders began their careers in roles that are now far harder to find. During university and afterwards, I was able to work in contact centre and operations roles across various sectors. These roles were formative, building problem-solving capability, resilience, and confidence. The result is that comparable entry points now exist at far smaller scale, reducing opportunities for young people to develop the foundations employers still expect.

At the same time, falling job postings mean more young people are competing for fewer roles, often only engaging with support after early routes have broken down.

Entry‑level roles are often designed for immediate output rather than for early careers that need time to stabilise. The question is no longer whether young people can work, but whether employers are designing roles, routes and support that allow early careers to take hold.

In response to these pressures, the Youth Guarantee aims to encourage employers to create more opportunities. Used well, they can unlock access, but they cannot on their own address how roles are designed or sustained. This broader focus on earlier, joined‑up intervention is reflected in the Government’s Get Britain Working White Paper.

A more supportive, employer-aligned employment system

What is missing is not ambition, but a system that connects young people and employers more effectively. In practice, which means employer‑designed provision, de‑risked hiring routes, targeted community engagement, and integrated health and employment support.

Restart Scheme evidence highlights a significant shift: young people are now at the heart of the employment support system, with participation among 18 to 24-year-olds having more than tripled in four years.

Encouragingly, when young people do engage, they tend to thrive with the right support behind them. They’re one of the highest achieving groups on the Restart Scheme. That tells us the real issue isn’t willingness or ability but making sure support and job opportunities are shaped to help them get started.

Co-designing provision with employers

Maximus delivers high-impact Adult Skills provision across three devolved regions, and our programmes are co-designed with employers to ensure learners build the job-ready skills, behaviours and confidence employers need.

A dedicated employer engagement team works closely with learners and businesses to secure guaranteed interviews and meaningful work placements, spanning key growth sectors including logistics, customer service, business administration, and hospitality, directly aligning local talent with live vacancies.

But employer involvement extends beyond programme design into delivery. Across customer-facing sectors, employers help define job-readiness requirements and support the co-production of targeted modules and access to mandatory certifications.

Employers further engage learners through live role discussions and mock interviews, building confidence and reducing friction at the point of hire. Early outcomes from West Midlands Combined Authority delivery underline the value of this approach, with 19 to 24-year-olds accounting for nearly a quarter of learners and many already moving into sustained employment, indicating improved early career stability for a group at greater risk of labour market exit.

Employer-led work trials

Across our delivery footprint, we work with around 30 national employers and more than 500 SMEs and regional employers to develop practical routes into work for young people.

Our long‑standing partnership with Tesco shows how structured work trials can de‑risk hiring. Working together since 2018 across the Restart Scheme, young people aged 18 to 24 take part in a two‑week paid trial, rotating across in‑store roles and supported by a dedicated Tesco Buddy.

For those who choose to continue, the trial becomes a direct route into a permanent role, removing friction from the hiring process. Across this partnership, 52% of young people who completed a Tesco work‑trial placement entered employment, demonstrating the value of supported, employer‑led routes into work.

What this means for the future of employment support

Employment services that deliver for young people and employers consistently share three features that are still too rarely built in by default but are increasingly essential if early careers are to stabilise rather than churn.

Employer leadership must be embedded from the outset, with employers shaping provision and remaining involved through recruitment and early progression.

Health and employment support must operate as a single system, extending beyond entry into work to provide early, in‑work support that sustains performance and reduces avoidable exit. The focus must be on sustained employment rather than short‑term participation, as repeated replacement is no longer a viable workforce strategy.

This need for earlier, joined‑up intervention is increasingly recognised at a national level. The Government’s Get Britain Working White Paper highlights the importance of acting early, particularly for young people, to prevent temporary health issues becoming long‑term labour‑market exit.

The Youth Guarantee offers an opportunity to embed these principles by design, encouraging employers to create opportunities where traditional entry routes have weakened. As a short‑term incentive, it can help unlock access and reduce perceived hiring risk.

Its impact, however, will depend on how it is used. Where aligned with employer‑led provision, integrated support and a clear focus on progression and retention, it has the potential to support long‑term workforce planning rather than deliver short‑term participation alone.

Every employer can play their part

The first opportunity matters most. When employers are genuine partners from the start, when health and employment are treated as one journey, and when early roles are designed to last, first jobs become early careers.

As traditional entry points continue to shrink, employers need to take a more deliberate approach to creating supported routes into work. Without this, the gap between young people and the labour market will continue to widen.

Close to one million young people not in education, employment or training is not inevitable. The talent exists. What matters is whether employers and employment services work closely enough together to turn potential into participation.

As employment challenges evolve – particularly for young people – that focus on partnership, early intervention and practical delivery remains central.

Supporting progress toward an 80% employment rate will depend on sustained collaboration between government, employers, and local organisations. Our role is to continue supporting that collaboration, helping people build stable working lives and helping employers design roles that last.

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14 May, 2026

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