The UK entered recession in mid-2008 and the rise in youth unemployment was
immediate. In early 2008, the youth unemployment rate was 14 per cent (which unless
otherwise stated will here refer to people aged 16-24). This number rose sharply
through 2008 and reached 18 per cent in the first quarter of 2009 – the second quarter
of technical recession. After 2009 the UK economy wavered between periods of growth
and contraction – it was essentially flat – but re-entered technical recession at the end
of 2011. Youth unemployment rose more or less consistently between 2008 and 2012. It
reached a peak of 22 per cent in the last quarter of 2011, amounting to 1.04 million young
people out of work. Figure 1 shows the gradual rise in both the 16-17 and 18-24 age
groups since 2004 and then the much faster rise since 2008.