Last week George Osborne the shadow chancellor announced at the Tory conference that his party in government would increase the state pension age by one year to 66 in 2016.
Official unemployment figures to be published tomorrow are expected to show an increase in digits of people unemployed and claiming the dole. But youth unemployment will be an interesting statistic to watch in light of the campaign by both of the two main parties to have us all working longer before we receive a state pension; and when I think about that, I think about the past battles that Trade Unions had to reduce the hours worked in a week, it seems if anything; that were going backwards by adding a year to everyone’s working life; and that is just for starters!
Youth unemployment is expected to hit one million tomorrow as the hopes, aspiration dreams of the young pour down the drain in what will become apparent to them as nothing more than the rat race – welcome to the real world!
But Ray Barrell, a leading economist has warned: The Conservatives' plan to raise the state pension age to 66 will make youth unemployment worse, and would lead to a 200,000 rise in unemployment in the first year - many of whom could be young jobseekers. Barrell said: "One of the things you have to recognise is that markets do not jump to equilibrium; markets work slowly. If you rise the working age by one year, even if you announce it five years in advance, that will cause some unemployment problems when it happens. The numbers I see suggest that if you increase the number of people in the workforce by 600,000, in the first year unemployment will rise by 200,000.”
Barrell added: "Probably the most important of those [changes] is going to be dealing with youth unemployment, because that's what raising the state retirement age will cause, youth unemployment," he said!