A business owner and expert highlight the severe challenges facing young workers, from crippling anxiety and lack of basic skills to policy-driven hiring costs, as youth unemployment reaches critical levels.
Youngsters in their first job are often overwhelmed by basic workplace interactions, unable to pick up the phone due to anxiety, too shy to speak with colleagues, or hesitant to join work social activities.
Many recent school leavers request days off for 'anxiety' because they fear coming into work. Others show up late, not grasping that if their shift starts at 9am, they should be present at that time. Equally concerning, many lack fundamental numeracy skills, such as calculating a simple 10 percent of a value. These are among the challenges facing Generation Z, according to business owner Rachel Watkyn, founder and managing director of Tiny Box, the UK's largest gift packaging company.
Watkyn, who employs around 100 people including about 20 from Gen Z, shared her experiences in a Radio 4 interview following Alan Milburn's review into the UK's youth unemployment crisis. Her assessment is severe: she describes a generation suffering from neglect, a lack of care, and being robbed of their childhoods.
Like John Boumphrey, Amazon's UK country manager, who recently stated that businesses struggle to find young people with the right skills, Watkyn insists that the problem does not lie with the young workers themselves. Multiple factors contribute to the situation that has left a million young people not in education, employment, or training-commonly referred to as Neets.
On one hand, Gen Z's heavy reliance on social media, the influence of online personalities, and a preference for texting over speaking have eroded traditional interpersonal and communication skills. The COVID-19 lockdowns also played a significant role, with many youngsters experiencing trauma from prolonged isolation and disruption to their education and social development. On the supply side, there is a generation that is either frightened of work or simply unequipped with basic competencies.
Meanwhile, the demand side has also been weakened. The Labour government's policies, including increases to the minimum wage and employer National Insurance contributions, have raised the cost of hiring for businesses. This combination creates a perfect storm, and it is intensifying. Milburn's review forecasts that approximately 1.25 million young people will become economically inactive in the coming years.
Moreover, unemployment is climbing across all demographics. Recent Office for National Statistics data reveal that the number of potential redundancies averages 8,900 per week, a 76 percent rise compared to the same period in 2025, marking the highest level since the pandemic. Addressing the crisis requires immediate action beyond waiting for governmental reviews. Watkyn suggests that businesses must adapt to the needs of young workers.
At Tiny Box, she has implemented measures such as mental health training for staff to better support colleagues dealing with anxiety and has created roles tailored to the strengths and preferences of Gen Z employees. She acknowledges that she often takes on a maternal role, providing extra guidance and support.
However, as any parent knows, nurturing does not mean being permissive; tough love is frequently the most effective approach. The challenge is to balance empathy with expectation, to build resilience while offering structure. As the economy faces headwinds and youth unemployment rises, a coordinated effort from educators, policymakers, and employers is essential to equip the next generation with the skills, confidence, and habits needed for sustainable employment
Gen Z Youth Unemployment Anxiety Workplace Skills Alan Milburn Review Neets COVID-19 Impact Minimum Wage National Insurance Mental Health At Work
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