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Wednesday, May 20, 2026

Pay growth drops to five-year low as youth unemployment rises, ONS data shows - People Management

Experts call for apprenticeship guarantee as latest figures ‘paint a dismal picture’

19 March 2026

Pay is growing at the slowest rate in more than five years, while youth unemployment soars, the latest ONS labour market data has revealed.

Annual growth in employees’ average regular earnings was 3.8 per cent in November to January, down from 4.2 per cent in the previous quarter.

And while the unemployment rate remained stable at 5.2 per cent, youth unemployment has continued to rise, reaching 14.5 per cent – the highest since 2015. The share of 18 to 24 year olds out of work and not in full-time education (NEET) rose to 19.2 per cent in the quarter.

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James Cockett, senior labour market economist for the CIPD, noted that the uplift to the youth minimum wage rates coming into effect in just two weeks’ time would further raise costs of employing young people.

Cockett welcomed the government’s announcement of new incentives for employers to create entry-level jobs and apprenticeships, but added that the ONS figures “paint a dismal picture of the current challenges, highlighting the need not just for more entry-level jobs but a firm foundation of training and skills development”.

He called for an apprenticeship guarantee for all 16 to 24 year olds in the UK that meets minimum requirements. “Such a move is overwhelmingly supported by employers and will help young...



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