The rate of youth of unemployment in the world Economy
Like many other nations in the developed world the UK has a high rate of youth unemployment. Figures for the summer of 2013 suggest 15% youth unemployment in the UK. 13% of the UK population is aged 15-24 (Circa. 8 million) with 15% unemployed (Circa. 1.2 million). The rates are similar in the USA where youth unemployment stands at 16% for the same period. Over 10 million youths cannot find full-time employment in the USA. Youth unemployment is measured as those aged between 15-24 years old who are not enrolled in education.
In Greece and Spain youth unemployment is critical at rates of over 60% and 50% respectively.
In the UK, media suggestions outline that over 30 retail shops close each day and 1 in 5 risk closures in the near future. These figures are staggering and the effects on GDP growth and employment it disastrous for the UK economy. High youth unemployment causes catastrophic problems for long term economic growth as it means that it will take young adults longer to buy houses and have families.
Taking a sociological lens
As a social analyst the following is a breakdown of what different age categories would purchase:
15-24: Clothes, alcohol, college fees, holidays, tech items.
This is a person’s prime period in their lives. People in this age category are more likely to socialise more often, spend more on clothes, accessories and alcohol. Those in this age bracket are assumed to enter college and university education at this period in their lives. Holidays are popular among many 18-24 year olds and they also prefer to keep up to date with technology purchasing smartphones, laptop and tablets etc.
25-40: Housing, Weddings, Holidays, Cars
At this stage of a person’s life, they look to settle down, buy a house, buy a car and have a family.
40-60: Purchasing items for children, school fees, Books, college/university fees. People in this age group begin saving for the futures of their children.
60-80: Purchasing slows dramatically for this age group as people begin to retire from work and begin receiving pensions. Pensions lead to a lower rate of earnings each year and less purchasing power. This age category are likely to have mortgages paid off and continue saving for their children and their children’s children.
What the UK can do to save retailers
Bringing this analysis together, if the United Kingdom is to save retailers and those in the high street who are at risk, youth unemployment is an essential element that must be tackled. The youth will spend and are not known as savers. The Clothing retailers are the sector that can benefit the most from policies from the UK government to remedy the large scale youth unemployment. When around 1.2 million youths are not earning money that means an estimated 1.2 million youths are not spending money and contributing to the UK economy.