Employers value those with a completed apprenticeship more than those who have completed a three-year college degree.
A new report by the London Chamber of Commerce, Back Young People, Back Growth: Fixing the Social Contract, found that employers are willing to take a chance on young people with no work history at all.
Around 125,000 more young people enrol on a university degree rather than start an apprenticeship. The gap between university students and apprenticeships is now five times bigger than in 2006. With each apprenticeship, almost three more enter into a university.
The LCCI report highlights the NEET crisis. There is urgent need to tackle NEET, those Not in Education, Employment, or Training. young people, typically aged 16 to 24 in the UK—who are not in work or education.
The study calls for a taskforce to be led by a business leader, reporting directly to the Prime Minister, focused on halving the number of young people not in work, education or training by 2030. The target is to save around £11bn per annum.
Employers point to a skills crisis, with more than a quarter of all job vacancies difficult to fill because those applying don’t have the right skills, qualifications, or experience, according to the Skills England Annual Skills Report 2026.
In a bid to make apprenticeships more attractive, the LCCI suggests creating Apprenticeship+, offering apprentices the opportunity to spend one day per week at university to learn skills, without the debt carried over from a three-year degree. Students in England now graduate with average debt of £53,000, according to Student Loans Company figures.
“If the Government is serious about getting young people into work, it has to back the businesses that will employ them, by cutting the cost of hiring and making apprenticeships tax-free,” Karim Fatehi OBE, Chief Executive of the London Chamber of Commerce and Industry said.
Key findings from Back Young People, Back Growth: Fixing the Social Contract
- More than half of employers (53%) say they are more likely to hire someone with a completed apprenticeship over someone without one, compared with 45% who say the same of a university degree.
- 61% of employers say they would hire a young person with no work history at all.
- Almost six in ten employers (58%) say removing employer National Insurance for under-25s would help their business.
- Just 7% of employers say young people arrive with all the skills their business needs, while 38% say they arrive with few or none.
- 90% of those aged between 24 and 35 said it is better to have a job than not.
- 59% of young workers say they pay too much income tax, rising to 68% of those earning £45,000 to £69,999. Half of young workers earning £45,000 or more say benefits are too high, as do 44% of the young self-employed.
