MONDAY VIEW: The young are our future, so invest in them

By DAILY MAIL
Updated:

Investing in young people is not only commercially sensible, it is also the right thing to do on many levels, writes Ian Powell, Chairman, PricewaterhouseCoopers UK.

The UK's long-term economic prosperity is in the hands of this generation, and failing to maintain our investment and confidence in their skills now will pay business a poor dividend in the long term.

Recent performance indicators show the proportion of graduates who were unemployed six months after they left university rose by more than a third, from 5.7 per cent to 8.2 per cent in 2007-08.

Ian Powell, PwC

Present danger:  Cut-backs in graduate recruitment threaten future prosperity, claims Ian Powell 

These figures are set to rise again as many businesses focus on the bottom line and make the decision to scrap graduate programmes.

This decision, to stretch working capital margins rather than invest in the future of employees, is likely to have serious repercussions in the longer term.

I know that for many employers, short-term survival is a priority and cost-cutting measures are needed to achieve this.

But I ask these businesses who are cutting back on graduate recruitment to consider long and hard before doing so, given the possible long-term impact on our economy.

Employer recruitment freezes have the potential to be more problematic for young people than redundancy programmes.

If young people can't get a job in the first place, the duration and impact of unemployment on their prospects, and the impact of the wider availability and development of skills needed in a recovery, could haunt the UK economy for much longer than the recession.

What's become painfully apparent in the recession is that while academic capability is a vital foot in the door, workplace skills open up much bigger opportunities for graduates.

With university leavers losing confidence in the market and themselves, having the tools to speak the same language as business about your skills and contribution is a vital first step.

At PwC we launched an employability skills campaign on 40 campuses last year with great response. But when we launched it online we had more than 55,000 visits in six months, equivalent to one in ten of the graduate population of the previous year, getting advice, tips and tools.

This is not just connecting with those who wanted a job with PwC: The skills and competencies are relevant for any job application.

Big business has an important role to play in getting people into work and their responsibility in helping young people to do so has never been more evident.

Internships, open days, summer academies, demonstrating the skills you gained through sport or volunteering - these are all established routes to full-time roles in the U.S. and Europe. This culture is now embedding itself in education in the UK, too.

It's not just large organisations that can make the commitment to improving Britain's skills-based economy. Every organisation regardless of size or sector could benefit from providing meaningful work experience to those seeking it.

Stories in the press about graduates wearing placards seeking jobs for no pay emphasise the importance of developing the right skills among the workforce.

In many cases individuals are just seeking a foot in the door.

I believe we all have a collective responsibility to invest in the young people of this country, they are tomorrow's leaders. I should know, 32 years ago I joined PwC as a graduate trainee.

I was given an opportunity then, and now during these tough economic conditions it is imperative we continue to invest in the skills of our workforce for tomorrow.

If we fail to do so, there will be a stagnant talent pool that will have consequences on future generations as well as the wider economy.

PwC is supporting the Backing Young Britain campaign, bringing Government, business and other organisations together to create new training and job opportunities for young people.

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