Tuesday, 22 December 2015

Youth Unemployment in the Digital Age


For many centuries, the process of turning wool into thread was performed with the aid of various simple contraptions involving spinning a wheel by hand or a foot pedal. The lumps of cotton would be fed into the simple machine, stretched and twisted by a spindle into long threads ready to be woven into cloth to make garments.  People had been spinning thread like that for hundreds of years, making enough for their own domestic use, or on very limited scales.


One day in 1720, Mr and Mrs Hargreaves from Lancashire gave birth to a bouncing baby boy who they named James. James’ parents were quite poor and so it was, James never went to school; he never learnt to read or write. However in 1764, James Hargreaves invented a spinning machine that would eventually revolutionize the Textile industry. Hargreaves’ invention (The Spinning Jenny), made it possible for spinners to increase their output by a factor of 8, thus laying the foundation for the industrialization of weaving.

From the late 1700s, with key innovations like the Spinning Jenny, Britain led the rest of the world through a massive explosion of achievements from agriculture, transport, technology and communications.  This exciting period in world history would later become known as the “Industrial Revolution.”

By the early 1800s, the industrial revolution was spreading and evolving faster than it could be controlled. It was affecting people’s lives in ways that couldn’t have previously been imagined.  Innovations in production saw factories springing up quickly to meet demand.  However, such production was labour intensive and as a result, armies of men, women and children from the ranks of the underprivileged were recruited to mine raw materials and operate the various machines needed to increase output to match the insatiable demand for new products.

No one was prepared for the rapid pace of industrialization and innovation during this period. It was impossible to command a big picture of how things were evolving and the impact such massive growth would have on society as a whole. Little wonder then that there were no laws in place to protect the workers and with no labour laws to regulate their activities, employers pushed their workers to the limit. Men women and children worked 12-14 hours a day in deplorable (often inhumane) conditions, for very low wages.

The Factory Act of 1833 was the first meaningful law which helped to protect children in that it limited work for children aged 9-13 in textile factories to no more than 48 hours a week. This was followed by the Mines Act 1842 which prohibited women as well as boys and girls under the age of 10 from working underground. Things were pretty tough back then.

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The introduction of the World Wide Web in 1991, marked the beginning of the Internet Revolution. This new Information Age is a shift away from the old analogue methodologies and paradigms that were the backbone of the age of industrialization. Automation (the use of computers to control machines that do the work of humans) has replaced the human labour intensiveness that characterised the industrial revolution.  

The rapid growth and evolution of this new digital age, has caused seismic disturbances in every type of industry and has created new threats to employment. But just as it was at the onset of the Industrial revolution, it is impossible to forecast the full extent the internet age will have on society. But as the rate of innovation increases, it is clear that the demand for new skills will also increase and in contrast; the skills that were so in demand under the old industrial world, are becoming obsolete, therein lays the very real threat to employment.

It is with this rapidly shifting technological backdrop that we find not only a glut of workers with obsolete skills but also a younger generation (people between the ages of 18-24) from less privileged origins who cannot compete in the job market to fill the demand for rapidly changing skill sets.

Notwithstanding the fact that youth unemployment rates are always higher than adult unemployment rates, in this technological age education is all the more crucial.

In the industrial age, it didn’t matter that James Hargreaves was illiterate, that was not an obstacle to inventing the Spinning Jenny. But if Bill Gates, Mark Zuckerberg, Larry Ellison, and Elon Musk were illiterate, our 21st century would look very different indeed.

As the pace of innovation increases, new industries and markets will emerge and existing businesses will find themselves threatened by competitive pressures that were not even relevant last year and in turn they will struggle to prepare for, or respond to those threats… This makes sense if their entire business proposition is based upon the Industrial World order (The old way). Many of these businesses may well see the need to shift their thinking in response to the digital disruption of their market, but even so, many may not have a coherent strategy to deal with those threats and wouldn’t really know what skills to employ to successfully compete in the new marketplace. What we are witnessing is the demise of the traditional business model.

Governments should recognize that the only way to combat youth unemployment in the digital age is through an education policy geared to meet this new reality. For example, perhaps it would be prudent to make coding and internet technology mandatory subjects just like reading, writing and mathematics in secondary schools.

For young people currently between the ages of 18-24, perhaps the UK Government could take a page out of Germany’s book and offer free university or technical college places to academically qualified people.

Perhaps government could have a flat minimum wage rate for all workers including 16 year olds and those on an apprenticeship. And speaking of apprenticeships, perhaps government could create a series of programmes which incentives industry to take on and train under qualified youth with the real prospect of a job at the end of the programme. 

Perhaps government could stop demonising and punishing unemployed young people and instead focus energy and money on creating and publicising high quality vocational courses aimed at meeting the skills demanded by industry, instead of the odd 2 week course in hairdressing.


These measures, combined into a comprehensive, coherent and well publicised strategy would drastically reduce youth unemployment in the 21st century and make Britain better positioned to take on the challenges of the future as the digital era unfolds.


Mike Enwright
Centre for Leadership and Management Development
18-36 Wellington Street
Woolwich
SE18 6PF
02083177380
www.clmd.org.uk

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