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Stop blaming young people for being unemployed, says Amazon's UK boss
bbc.
John Boumphrey, Amazon’s country manager for the United Kingdom, argues that the prevailing narrative blaming young workers for their unemployment is fundamentally incorrect. While a record number of young people in the UK remain without jobs, Boumphrey insists that the fault lies with structural deficiencies in society rather than a lack of effort or ability among the younger generation. He contends that the existing education system fails to adequately prepare students for the demands of the modern workplace. This disconnect between academic curricula and professional requirements leaves many graduates ill-equipped for the job market, creating a significant barrier to entry for entry-level positions.
The scale of this disengagement is substantial. Nearly one million young Britons are not engaged in education, employment, or training. Despite this vast pool of potential labor, Boumphrey notes that Amazon struggles significantly to recruit employees who possess the specific technical and soft skills necessary for its operations. To address this challenge, he is advocating for mandatory work experience for all students over the age of sixteen. He emphasizes that the root of this issue is not a lack of motivation among the youth. Rather, it is a systemic problem that requires a coordinated solution involving close collaboration between educational institutions, employers, and government bodies.
The context for this crisis became clear when official figures showed the UK’s unemployment rate rose slightly to five percent in the three months leading up to March. This marked an increase from 4.9 percent in the previous period. The situation is particularly severe for younger demographics. The unemployment rate for people aged sixteen to twenty-four reached 16.2 percent. This figure represents the highest level of youth unemployment since late 2014, signaling a deepening economic barrier for this age group.
Jane Foley, the managing director at Rabobank, described the numbers as horrible. She noted that hospitality jobs used to be the primary entry point for many workers, including herself. However, these jobs are closing doors for young people for two main reasons. First, legislation regarding minimum wage has changed the economics of hiring, making it more expensive for businesses to employ entry-level staff. Second, technology is replacing manual roles that once provided initial work experience. As automation takes over routine tasks, the traditional ladder for career entry is disappearing, leaving many young people without a foothold in the labor market.
Further research published by the Institute for Fiscal Studies highlights the severity of the current trend. The study shows that the decline in youth employment is approaching the same levels of drop seen during the 2008 financial crisis and the Covid-19 pandemic. Alan Milburn, a former Labour minister, is conducting an independent review of UK youth unemployment. He has previously called the situation a social, economic, and political catastrophe. His involvement underscores the gravity of the issue, which affects not just individual prospects but the broader social fabric of the nation.
Amazon is a major employer in the UK, with 75,000 staff members. According to Boumphrey, half of these employees come directly from education or unemployment. Boumphrey disagrees with the common narrative that young people lack resilience or the will to develop skills. He points to Amazon’s internal programs as evidence. For example, the company runs a work experience program for young people with learning disabilities and autism. He says the transformation seen in these participants is significant, demonstrating that with the right opportunities, young people can thrive in professional environments.
Boumphrey believes that mandatory work experience is transformative. He argues that it teaches skills that are not covered in the standard school curriculum but are essential for employers. He notes that when students on T-level courses spend a week in a workplace, they quickly understand the value of teamwork, communication, and problem-solving. The Department for Education already expects post-16 providers to offer work experience as part of their funding conditions, but Boumphrey suggests this needs to be more widespread. He argues that a consistent, mandatory approach would ensure that all students, regardless of background, gain these critical real-world insights before entering the workforce.
The personal struggle of job seekers illustrates the human side of these statistics. Andy Wilkins, twenty-six, lives in Southend-on-Sea, Essex. He has been out of work for nearly a year after leaving his previous job. The £2,000 he had saved is gone, spent on rising bills. His current income consists of £400 a month through Universal Credit, a government support system. Andy is a graduate of the University of East London. Despite his qualifications, he has applied for entry-level jobs at major retailers like Lidl, Aldi, and Primark. He has been rejected by employers such as Burger King, Superdrug, and Next. He states that he is desperate to work and has a mindset that no job is too big or too small. Yet, while individuals like Andy face rejections, Amazon reports the opposite problem. The company struggles to find enough workers with the necessary technical skills.
This paradox highlights a significant misalignment in the labor market. On one hand, there are capable, motivated individuals like Andy who cannot find entry-level positions. On the other hand, large corporations like Amazon have open positions but cannot find candidates with the specific hybrid skills required, such as technical proficiency combined with practical workplace experience. This suggests that the problem is not a lack of willing workers, but a lack of relevant preparation.
Amazon operates 100 premises in the UK, including 30 warehouses. Boumphrey says that businesses must collaborate with local governments and further education colleges. They need to identify skills gaps on a regional basis. This coordination is crucial for aligning education with market needs. By working together, these entities can design curricula and training programs that reflect the actual demands of the local and national economy, reducing the friction between job seekers and employers.
Boumphrey also addressed concerns about automation. When Amazon introduced robots into its warehouses, some feared these machines would replace human workers. The reality was different. Amazon ended up employing more people. The company needs mechatronics engineers, technicians, and maintenance staff to support these robots. These are specialized roles that did not previously exist, and there is a shortage of qualified people to fill them. This shift demonstrates how technological advancement creates new job categories, but only for those who have the skills to operate and maintain them.
Niki Fuchs, the co-founder and chief executive of Office Space in Town, offers a different perspective. She says providing work experience is largely a mindset issue. She claims there is very little stopping firms from doing it. Fuchs tells her staff and clients that she will provide work experience to their teenage children without question. She believes this is a necessary part of contributing to society. Her approach highlights the role that corporate culture and individual leadership can play in breaking down barriers to youth employment.
Amazon has faced scrutiny regarding the amount of tax it pays in the UK. Critics argue that the company’s tax bill has not increased in line with its sales, despite the massive rise in online shopping since the Covid-19 pandemic. Earlier this year, Amazon overtook the US supermarket giant Walmart to become the world’s largest company by annual sales. In the UK alone, Amazon accounts for thirty percent of all online sales. This market dominance has intensified debates about corporate accountability and the fair distribution of tax revenues.
When asked about his company’s tax contributions, Boumphrey stated that last year the company contributed more than £5.8 billion. However, Amazon has repeatedly declined to specify the exact amount of corporation tax it pays. Boumphrey told the BBC that Amazon pays more than £1 billion in direct tax. He clarified that this figure includes corporation tax, business rates, national insurance contributions, and digital services tax. Last year, the company’s net sales in the UK exceeded £25 billion.
Boumphrey argued that Amazon pays all the tax it is legally required to pay. He suggested that the contribution should not be measured by tax alone, but also by the 75,000 jobs the company creates. When questioned about future transparency regarding corporation tax, Boumphrey admitted that the company did not talk much about tax when he joined. He said they have been on a journey to become more transparent. However, he pushed back against publishing detailed corporation tax figures. He argued that for a business model with high investment, these numbers can fluctuate significantly from year to year. He warned that these figures can easily be taken out of context, leading to misunderstanding. This defense emphasizes the complexity of corporate finance and the challenges of evaluating corporate contribution through a single metric.