Too many young people in the UK feel they need to leave the communities they grew up in to succeed elsewhere. This has a profound impact on local economies across the country. For example, £1.5 billion is lost every year from young people leaving North Yorkshire. It is a similar story for other regions across the UK. What is causing this shift, and how can it be addressed? As a young person, I know expectations and beliefs have evolved greatly compared to previous generations. Young people with high academic achievement in the UK are encouraged to pursue a university degree, while apprenticeships are typically seen as a hands-on alternative for those with a more vocational background.
This dual-track system has created several negative effects. Once young people leave the communities they came from to attend university and become graduates, the best jobs available for them, with the highest pay and career progression, tend to be in urban hotspots like London. As the North Yorkshire figure shows, the impact is clear: communities across the UK are losing highly-qualified, motivated young talent. Young people who can’t move and access these jobs, whether due to lack of qualifications or financial constraints (e.g. the ability to cover high rents in urban areas), remain in their local community and are confined to the opportunities available there. Moreover, with a highly-competitive jobs market, there is no longer the guarantee that young people will get a job after finishing university. Hearing about young people graduating with a first-class degree and working in a supermarket no longer surprises me.
The UK now faces a social mobility crisis, with over 1 in 8 young people aged 16-24 not in education, employment or training (NEET). Reform of this dual-track system is urgently needed. Efforts have been made by recent governments to diversify options available. The introduction of degree apprenticeships aligns the needs of industry with entry-level opportunities for young people. These have proven extremely popular, but opportunities remain scarce and highly competitive, with some programmes accepting less than 1% of applicants.
At the same time, a UK-wide survey in 2024 by Open University and British Chambers of Commerce showed that 62% of UK employers are facing skills shortages. With AI continuing to have a transformational impact across early-careers, employers and industry bodies are highlighting the need for human skills in the modern workplace. The World Economic Forum in December 2025 mentions “human-centric skills” and “trade and vocational skills” as those which “should be prioritized to deliver on innovation, resilience and growth priorities.” The Office for National Statistics in 2024 said that “establishing and maintaining interpersonal relationships" and "updating and using relevant knowledge” are the “the two most critical skills for the labour market."
Apprenticeships with small and medium-sized enterprises (SMEs) offer a promising route to address these challenges and the growing needs of UK employers. Offering opportunities for young people to engage with employers at an early-stage helps develop these much-needed human skills, alongside building credible routes for employment. Employers also benefit from a more stable talent pipeline, with 86% of employers reporting the “development of skills relevant to the organisation” and over three quarters of employers reporting increased productivity as a result of offering apprenticeships. We know there is untapped potential when it comes to SME apprenticeships. At Careerbay, we recognise that many SME employers already offer work experience to young people locally.
Making the apprenticeship process easier for SMEs, as outlined by Edge Foundation and the Apprenticeships Work campaign, is a clear step we can take to address the challenges facing employers and young people across the UK.
In the short term, we must do more to raise awareness and help SMEs recognise the benefits of employing apprentices and how to get started. Enhancing financial incentives for SMEs, funding and expanding apprenticeship brokerage services, as well as giving SMEs a stronger platform to share their views and shape the future of apprenticeships, are common-sense reforms we can make over the long term to improve the system and create positive impact.
Written by
Daniel Peacock, Founder and CEO, Careerbay