Amazon UK Boss John Boumphrey Blames Education System for High Youth Unemployment
A record number of young people in the UK are out of work, a situation Amazon's UK boss, John Boumphrey, attributes to systemic failures in education rather than a lack of motivation among youth. Boumphrey stated that the education system is not "producing young people who are ready for work", advocating for mandatory work experience for over-16s.
Official figures released this week indicate the UK's overall unemployment rate rose to 5% in the three months to March. For 16 to 24-year-olds, the unemployment rate stands at 16.2%, marking its highest level since late 2014. Jane Foley, managing director at Rabobank, described this figure as "a horrible number", noting the decline in hospitality jobs, historically a crucial entry point for young people into the workforce, due to minimum wage legislation and technological advancements.
Research from the Institute for Fiscal Studies highlights that the current decline in youth employment approaches levels last seen during the 2008 financial crisis and the Covid-19 pandemic. Former Labour minister Alan Milburn, due to publish an independent review on UK youth unemployment, previously characterised the issue as a "social catastrophe, an economic catastrophe and a political catastrophe".
Despite this, Boumphrey claims Amazon, which employs 75,000 people in the UK, half of whom join directly from education or unemployment, struggles to fill roles requiring specific skills. He argued that characterising young people as lacking motivation or resilience is inaccurate based on Amazon's experience, particularly with programmes for individuals furthest from work, such as those with learning disabilities and autism.
Boumphrey stressed the "transformative" nature of work experience in developing skills like teamwork, communication, and problem-solving, which he believes are not adequately taught in the curriculum but are highly valued by employers. He called for collaboration between businesses, local governments, and further education colleges on a regional basis to identify and address skills gaps. Regarding Amazon's tax contributions in the UK, Boumphrey stated the company contributed over £5.8bn last year, including more than £1bn in "direct tax" covering corporation tax, business rates, national insurance, and digital services tax. He defended the company's approach to tax transparency, citing the fluctuating nature of corporation tax for a "high investment mode" business.
