The Economy, Culture and Skills Committee convened to discuss the pressing issue of youth unemployment in London, hearing from experts on the challenges faced by young people and potential solutions. Key themes included the significant impact of a lack of work experience and professional networks on young Londoners, the role of further education and apprenticeships, and the growing influence of technology and AI on the job market.

Youth Unemployment in London

The committee heard that London has the highest rate of youth unemployment in the UK, with 24.6% of 16-24 year olds unemployed between November 2025 and January 2026. Experts highlighted that this issue is exacerbated for young people from disadvantaged backgrounds, including those in care, with special educational needs, or from lower socioeconomic households. These young people often lack the crucial networks and financial resources to access unpaid internships or gain necessary work experience, creating a catch-22 situation where experience is needed to get a job, but a job is needed to gain experience.

Further education and apprenticeships were discussed as potential pathways to employment, but concerns were raised about high dropout rates, particularly among disadvantaged young people, and the competitiveness of higher-level apprenticeships. The need for earlier work readiness training, starting from Key Stage 3, was emphasised to help young people understand the world of work and build essential employability skills.

The impact of technology and Artificial Intelligence (AI) on youth unemployment was also a significant topic. While AI presents opportunities for digital literacy, its use in recruitment processes, such as AI-led interviews, was found to be frustrating for young people. Experts suggested that focusing on developing human skills like communication and teamwork alongside technological proficiency is crucial for future employability.

The committee also explored the role of employers and government policy in addressing youth unemployment. There was a consensus that a greater focus on the demand side – creating suitable job opportunities and supporting employers – is needed, rather than solely focusing on the supply side of skills development. Suggestions included incentivising employers to hire young people, potentially through reduced National Insurance contributions, and ensuring that apprenticeship programmes are accessible and lead to meaningful employment. The importance of a coordinated approach across different sectors and local authorities was also stressed, with the idea of a London-wide youth participation system being proposed.

Finally, the discussion touched upon the economic pressures facing museums and galleries, and the potential impact of a visitor levy. While national museums often offer free entry, independent and smaller institutions rely on a mix of income streams, including ticket sales and fundraising, which are increasingly under pressure. The potential introduction of a tourism levy was discussed as a way to support the cultural sector, with a strong emphasis on ensuring that any revenue generated is ringfenced for cultural purposes and benefits a wide range of institutions, not just the largest national ones.