Story perspectives

Rising Minimum Wage Fuels Youth Unemployment Crisis

2/15/2026

Summary

Story summary

Catherine Mann, a Bank of England official and Monetary Policy Committee member, says youth unemployment stems from increases in the minimum wage for younger workers.
The 16- to 24-year-old unemployment rate reached 15.3% in September, above the EU average for the first time since 2000.
Mann warns against viewing this as a broader decline, while Paul Johnson says higher minimum wages and National Insurance contributions price youths from entry-level jobs.

History

Historical Context

In 2000, the youth unemployment rate in the EU was around 10%, with various countries implementing supportive policies for young workers. However, by 2023, the UK's youth unemployment rate rose to 15.3%, reflecting broader economic challenges. Catherine Mann's remarks highlight concerns that rising minimum wages and National Insurance contributions may further hinder young people's job prospects, risking long-term economic implications.

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Story summary

Catherine Mann, a Bank of England official and Monetary Policy Committee member, says youth unemployment stems from increases in the minimum wage for younger workers.
The 16- to 24-year-old unemployment rate reached 15.3% in September, above the EU average for the first time since 2000.
Mann warns against viewing this as a broader decline, while Paul Johnson says higher minimum wages and National Insurance contributions price youths from entry-level jobs.

1 / 2