Stop blaming young people for being unemployed, says Amazon's UK boss

A record number of young people in the United Kingdom are out of work, but Amazon's UK boss, John Boumphrey, has stated that they are not to blame. Instead, Boumphrey argued that the education system is failing to prepare young people for the workforce and called for mandatory work experience for individuals over the age of 16.

According to recent official figures, the UK unemployment rate for 16- to 24-year-olds has reached 16.2%, marking its highest level since late 2014. Meanwhile, the UK's overall unemployment rate rose slightly to 5% in the three months to March, up from 4.9% in the preceding three months to February. Nearly one million young Britons are currently not in education, employment, or training.

Speaking to the BBC, Boumphrey stated, "We have to stop blaming young people." He added, "It's not a motivation problem - it's a system problem, and that requires a system response." Despite the high youth unemployment figures, Amazon reportedly struggles to recruit workers with the specific skills the company requires.

Jane Foley, managing director at Rabobank, described the youth unemployment rate as "a horrible number." Foley noted that traditional entry-level jobs in hospitality are increasingly unavailable to young people, partly due to minimum wage legislation and technological developments.

Research published by the Institute for Fiscal Studies indicates that the current decline in youth employment rates is approaching levels seen during the 2008 financial crisis and the Covid-19 pandemic. Former Labour minister Alan Milburn, who is conducting an independent review of UK youth unemployment, previously described the situation as "a social catastrophe, an economic catastrophe and a political catastrophe."

Amazon currently employs 75,000 people in the UK, with half of its workforce coming directly from education or unemployment. Boumphrey rejected the notion that young workers lack drive, stating, "I think too often you read about young people that somehow they lack motivation, they lack resilience, they lack the will to develop skills. That is not our experience."

Boumphrey highlighted Amazon's work experience programme for young people with learning disabilities and autism as an example of successful development. "We work with some individuals who are probably furthest from work and that's where we actually see the biggest transformation," he said.

To address the skills deficit, Boumphrey proposed making work experience mandatory for those over 16, stating it teaches things that are not currently in the curriculum but are highly sought after by employers. He told the BBC's Big Boss Interview, "If you get a T-level student, they come in for a week, they understand the value of teamwork, of communication and problem solving."

The Department for Education currently expects post-16 education providers to offer work experience as part of their funding conditions. However, the UK's weak jobs market, characterized by cuts to graduate schemes and hospitality roles, continues to affect young job seekers.

Andy Wilkins, a 26-year-old University of East London graduate living in Southend-on-Sea, has been unemployed for nearly a year. Having depleted his £2,000 savings on rising bills, Wilkins lives on £400 a month from Universal Credit. Despite applying for entry-level positions at companies including Lidl, Aldi, Primark, Burger King, Superdrug, and Next, he has been repeatedly rejected. "I am desperate to work, no job is too big or too small – I have that sort of mindset," Wilkins said.

In contrast to the job search struggles of individuals like Wilkins, Amazon faces difficulties filling technical roles. The company operates 100 premises in the UK, including 30 warehouses. Boumphrey called for closer collaboration between businesses, local governments, and further education colleges on a regional level to identify and address skills gaps.

Boumphrey also noted that the introduction of automation did not lead to job cuts. "Actually, the reverse happened...we ended up employing more people," he said, citing unfilled vacancies for mechatronics engineers and technicians. "they're not roles that exist. We can't find enough people to fill those roles," he added.

Niki Fuchs, co-founder and chief executive of London-based flexible office provider Office Space in Town, supported the call for more work experience opportunities, calling it a "mindset." Fuchs stated she offers work experience to the teenage children of her staff and clients "without questioning it because we think that's part of what we need to do for society."

Amazon itself has faced public scrutiny over its tax contributions in the UK, with critics arguing its tax payments have not kept pace with sales growth since the Covid-19 pandemic. Earlier this year, Amazon overtook Walmart to become the world's largest company by annual sales, with UK net sales exceeding £25 billion last year.

When questioned about the company's tax contributions, Boumphrey stated that Amazon contributed more than £5.8 billion last year. Although Amazon declined to specify the amount of corporation tax it pays, Boumphrey said the company pays more than £1 billion in direct taxes, which includes corporation tax, business rates, national insurance contributions, and digital services tax.

"Of course we pay all the tax we're meant to pay, but when you think about our contribution, it isn't just the amount of tax we pay, it's also the 75,000 jobs we create," Boumphrey said. Addressing future tax transparency, he noted that Amazon has "been on a journey of getting more and more transparent," but argued against publishing corporation tax figures because they can fluctuate yearly for high-investment businesses and be "taken out of context."