Andy Burnham used his first major speech since returning to Parliament to argue that Britain's future prosperity depends on reindustrialisation, stronger technical education and clearer routes into work. For manufacturers and automation businesses across the UK, that message will sound familiar.
You might not expect someone from the automation industry to be among the loudest voices on youth unemployment and skills. But the reality on the factory floor is this: our members are desperately short of skilled people, and nearly one million young people are being left without a clear route into work. Alan Milburn’s report was absolutely right to call this a generational fault line – and those of us in industry have known it for a long time. Burnham's speech rightly puts that challenge at the centre of Britain's growth agenda. For Burnham, the message from industry is clear: the NEET crisis is not just a social challenge. It is a growth challenge. And young people deserve better.
Burnham has already put some of this into practice in Greater Manchester. His work to develop the Greater Manchester Baccalaureate, strengthen technical education and connect young people with employers is an important step towards giving vocational and academic routes equal status. Industry supports that direction. The challenge now is to build on it nationally, by ensuring that employers, particularly smaller businesses, can play a full part in shaping and delivering the skills system Burnham wants to see.
My experience as Policy Director for the UK’s leading robotics, automation and machinery trade association, Automate UK, tells me that business wants to be part of the solution Burnham is describing. Members consistently remind me that they are struggling to recruit people with the right skills, while at the same time, we’re seeing talented young people unable to access meaningful routes into employment. There are multiple reasons for this, but one that we see time and time again is that young people with the right skills, the right way of thinking, the right attitude, lack the academic ability to pass arbitrary exams in subjects which they may not need for a career in manufacturing.
This isn’t about saying that one subject is more important than another, or that we should delist certain areas of the curriculum, it’s about being adaptable so that young people with bright futures can achieve that success via an educational pathway which sets them up to pass, not fail. Across manufacturing, engineering, logistics and technology, employers are competing for a limited pool of talent. At a time when growth is rightly at the top of the Government's agenda, and Burnham is positioning Greater Manchester as a proving ground for that agenda, this is a contradiction we can no longer afford to ignore.
Burnham rightly challenges the assumption that this is simply a question of young people not wanting to work. The overwhelming majority do. The problem is that the transition from education into employment is becoming increasingly difficult. Entry-level opportunities have become harder to access, apprenticeships have declined, and many young people find themselves trapped between education, training and work without a clear pathway forward. Burnham understands this better than most, having already tried to address it in his own region. The opportunity now is for him to take that understanding and turn it into a practical, national offer for young people and employers alike.
That is precisely why employers must be part of the solution. Last year, the charity that we fund, Automate BEST, launched its Apprenticeship Cluster programme, bringing together businesses, educators and apprentices to create stronger pathways into manufacturing careers. The initiative allows groups of businesses to work collaboratively rather than in isolation, and in doing so, the programme helps share expertise, broaden experiences for apprentices, and makes it less of a risk for employers to invest in future skills. So far, the charity has supported over 300 apprentices to find full-time roles, with almost 50 of those benefitting from the Cluster experience. This is just one practical example of what can be achieved when industry takes ownership of the skills challenge rather than waiting for government to solve it alone. Greater Manchester's own success in bringing employers together to create additional work placements demonstrates what can be achieved when business, education and local leaders work towards a shared goal. That collaborative approach now needs to be replicated more widely. Marks and Spencer’s recent announcement of 1,000 new training opportunities for 16 – 24-year-olds is another – business addressing the challenge with tangible benefits for their talent pipeline and their bottom line, as well as for society.
But successful initiatives cannot remain isolated examples – nor can they solve the crisis alone. Burnham spoke about building a broad coalition around growth. Industry wants to be part of that coalition. Government, employers, educators and local leaders all have a role to play in creating clearer pathways into work and scaling the initiatives that already deliver results. Young people need clearer routes into sectors that are growing and actively recruiting, but business needs greater confidence that their innovations and interventions will be recognised and matched by government.
There is an additional reality that Andy Burnham will have to tackle, one that my members often raise with me – taking on young people can feel increasingly risky. Particularly for small and medium-sized businesses. As we hear daily, SMEs are the backbone of our economy, but most operate with limited resources, complex regulations, and little room for error. And the financial pressure is only growing. The rising cost of apprenticeships, combined with higher wage bills as businesses stretch to maintain pay differentials for existing staff, is hitting SMEs hardest. When you add the very real possibility that a new recruit may not work out, it’s no surprise that many employers are thinking twice before creating opportunities for young people.
If Burnham wants more of them to do so, he should advocate for a system that helps to derisk those decisions. That means giving employers greater flexibility through the renewed Growth and Skills Levy, supporting shorter and more targeted forms of training, and making it easier for businesses to invest in upskilling and reskilling. It also means recognising that participation can’t be siloed – we can’t rely solely on schools and colleges, and nor can we rely solely on business. Employers have a role to play and they want to do just that, but they need the right support, incentives, and assurance that their efforts will be matched by the State.
As our economy evolves, we must prepare our young people for the jobs that are emerging. Automation, robotics, and digital technologies are already transforming workplaces across the UK. Contrary to previous perceptions, these technologies do not eliminate opportunity. In fact, they create demand for new technical, engineering and digital skills. This requires creating the environment that ensures more young people have access to those opportunities.
Burnham is also right to argue that public procurement should do more to strengthen British industry. Used well, it can support domestic manufacturing, create opportunities for apprenticeships and work placements, and encourage businesses to invest in the skills they need for the future.
The UK's productivity challenge and its youth participation challenge are not separate issues. They are two sides of the same coin. If Andy Burnham is serious about growth, competitiveness and creating opportunity in every part of the country, he should focus on making it easier for young people to make the journey from education into work.
Milburn's report should act as a wake-up call, but Burnham now has an opportunity to act on it at national scale. Industry wants him to convene employers and educators, back flexible and practical training, derisk investment in young people and build clearer routes into growing sectors. We cannot continue to accept a situation where nearly one million young people are left on the sidelines while employers struggle to fill vacancies and drive growth. The talent is there. The ambition is there. The task now is to build a system capable of bringing them together.
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