David Miliband is to chair a taskforce set up by ACEVO on youth unemployment, reporting in winter 2011.

The taskforce will be chaired by Miliband, with a small number of other commissioners from across different sectors taking part as commissioners, including Katherine Kerswell (CEO, Kent County Council), Professor Paul Gregg (Bristol University), Baroness Stedman-Scott (CEO of the charity Tomorrow’s People), and Jonathan Portes (director, National Institute for Economic and Social Research).

Hundreds of thousands of young people are affected by unemployment. According to ONS figures, the unemployment rate for 16- to 24-year-olds is 20.2%, or 949,000 young people. Of this group, 671,000 are also not in full-time education.

Youth unemployment, particularly if prolonged, can have a significant negative impact on the individuals concerned.

Studies suggest, for instance, that it increases the likelihood of later unemployment, lower wages, and poor health.

The problem has been growing.

Youth unemployment fell steadily after a peak in 1992-1993, but then levelled out between 2001 and 2004, before increasing slightly between 2005 and 2007.

It rose sharply in 2008 with the recession, and in the last few months has risen again. 15,000 more young people were unemployed in the three months to June 2011 than were unemployed in the three months to March 2011.

Youth unemployment leads to significant costs to the public purse. Research by the Prince’s Trust suggested that in 2007 (when youth unemployment was significantly lower), youth unemployment was costing the UK £90 million every week.

Research undertaken for the Audit Commission by the University of York in 2010 suggested that the group of 16- to 18-year olds not in education, training or employment at the end of 2008 would ultimately cost the UK almost £12 billion.

ACEVO has long championed the role that third sector organisations can play in tackling unemployment.

The taskforce will consider the potential role of the third sector but also look more broadly at potential solutions to the issue of youth unemployment.

Over the course of the next few months the taskforce will be seeking evidence from ACEVO’s 2,000 members and a wide range of experts and other groups from the public, private and third sectors.

David Miliband said: “Hundreds of thousands of young people get the worst possible start to adult life in the form of sustained unemployment. It blights their futures and costs the country billions.

"I’m looking forward to talking to third sector organisations, local government, academic experts, businesses, further education institutions and young people so we can develop practical solutions to tackle this crippling problem that is threatening Britain’s next generation.”

Sir Stephen Bubb, CEO of ACEVO, added: “I am delighted that David Miliband has agreed to chair this taskforce on youth unemployment.

"His extensive experience inside government and the world of policy-making make me confident we will produce a seminal report on what is surely one of the most important issues facing the country – the employment prospects of our young people.”

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