If bringing on a 19 year old feels pricier than it used to, Milburn says employers are telling him the same thing. Speaking while on a research trip in the Netherlands, he noted he's keenly aware that the latest increases in minimum pay for young workers have squeezed businesses, and he suggested his review might look at pausing or undoing planned moves to align pay between younger and older staff. "There is no doubt that this is high on the agenda of employers; I hear it continually," he told reporters. "That has had an impact."
Milburn's review is aimed at helping the Labour government understand why youth unemployment is rising and at shaping policies to get more young people into work. The project was commissioned by Keir Starmer last November and is due in the coming weeks. Andy Burnham, who succeeded Starmer, has also pledged to address the problem. Milburn cautioned the challenge did not suddenly appear, pushing back on the idea it is a "two-year old problem," and said his review was "looking at all these issues in the round, looking at all the issues that employers are raising with us, that young people are raising with us that public policy has got to address".
While in office, Starmer's administration increased the statutory pay floor for people under 21 and set a course to equalize pay for everyone over 18. Alongside increases in employer National Insurance contributions, those policies have been blamed for the latest climb in youth joblessness. The number of 16 to 24 year olds not in education, employment or training is close to one million, according to the Office for National Statistics.
Milburn also indicated apprenticeship reform is in scope.
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Former England manager Gareth Southgate joined Milburn in the Netherlands and has been campaigning on the pressures facing young people. He pointed to the hit from higher costs on entry level hiring: "The demise of the high street, the unintended consequences of things like minimum wage, national insurance: if you speak to people that run bars or restaurants, that's what they would say is inhibiting them from employing young people." He said "a mix of changing the mindset of how we look at these things, but also perhaps aided by some changes in policy, could really make a difference." Milburn, for his part, said companies should invest more in younger workers and that momentum is building: "There's a mood for changing this and employers wanting to contribute to it, and it can be infrastructure, defense, energy, retail, hospitality - you name it," he said. "Public policy's got a critical role to play in that as well, because we've got to make it as easy as possible for our employers to employ young people".
If wage rules shift or apprenticeships get overhauled, sectors like hospitality and retail that rely on young staff could rework their hiring math, which can filter into prices, hours and service where you spend. The review runs independently and Burnham is not obliged to implement it, but he has labeled youth employment a priority, so the findings are likely to shape what comes next.
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