Former Minister Alan Milburn’s report warns that Britain is at risk of a ‘lost generation’, with more than a million young people not in work, education, or training (NEETs). That number is expected to rise over the next five years.
For me, the Financial Times is right to frame this as a moral challenge. As a service nation, we have a responsibility to do right by our future workforce: those who will operate in and manage our businesses, and those who will make the political and economic decisions that shape the country and our wider society.
The resulting productivity problem is a real concern, as it has held back business and government for more than a decade and will continue to do so until it is effectively addressed. But neither can hope to solve it alone.
That is why we need a more honest conversation about what is really happening, how we fix our issues collectively and what we expect of one another – the job seeker, stretched employer and the challenged policymaker.
At the same time, in meeting this challenge, we can also seize the opportunity it presents to shape a workforce that is ready and able to meet the needs of the UK, along with those of the employees and customers of tomorrow.
A shared responsibility for the future workforce
The initial findings of the Milburn report are the latest in a series of warnings about a labour market that has struggled since 2008. The causes of this remain complex.
We have already seen how, in some cases, AI and automation are reshaping not just entry-level roles. This has shifted the goalposts for the education system, which isn’t yet set up to equip young people with the practical skills and early workplace readiness employers now expect.
On top of this, rising costs have left businesses less able to hire, train and retain people in their careers.
Many organisations have voiced frustration with the Government over what they see as the spiralling cost of operating and employing people. Simultaneously, the Government has been critical of businesses they view as favouring automation over investing in the future workforce.
Improving the conditions for employers to recruit and do business will be important in driving progress, but it’s only part of the answer. There is still work to be done to address perceptions of service roles, particularly among the younger generation.
Encouragingly, progress is being made. Service is now less often viewed as a short-term stopgap, with many recognising it as a challenging, varied career that can have a real impact on businesses and the economy, while offering meaningful progression and lasting value. It is important that this continues.
Service as a route to opportunity and growth
For many young people, service work offers the chance to build confidence, instils the discipline that comes with a structured working day, and teaches them how to communicate with professionalism and empathy – all while helping to deliver a memorable, high-quality customer experience. As we shape the skills of the future, we need to consider where we will deploy automation and AI to good effect, and which key skills we will need over the next 10 years to cope with the changes ahead.
The story of Pret’s CEO, Pano Christou, is a case in point – demonstrating the value of a start in frontline service. Having worked at Blockbuster and McDonald’s before building his career at Pret, Christou has consistently emphasised the value of resilience, hard work and service excellence.
Stories like his deserve to be told more often as a counter to the narrow view that some still hold of service work. Ultimately though, meeting the challenge of a ‘lost generation’ will take all of us.
For service leaders, this means setting the standard and nurturing the future of the service nation in a world that will require a seamless tech and human interface and all that comes with it. For government, it’s about recognising the value customer service brings not just to individuals and communities, but also to job creation, productivity and economic growth. And for NEETs, this is an opportunity to take on something new or different, and to grasp service as a ladder to a rewarding career.
Milburn’s final report is due in September and is expected to propose a raft of recommendations to get young people into employment, helping Britain tackle its productivity challenge. Those organisations that are truly committed to service excellence and sustainable long-term growth won’t wait for it, and it is up to us now to champion change.
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