It’s 2025, and on the surface, things look pretty good in the UK. The economy is growing, businesses are bouncing back, and the stock market is doing its thing. But beneath all that, a big question is lingering: Why are we still seeing unemployment rise, especially when the economy is supposedly on an upswing?
This is the reality many of us – particularly younger generations are dealing with. It’s frustrating, confusing, and at times, downright discouraging. But there’s more to the story than just headlines and statistics.
Let’s break it down, look at what’s behind the numbers, and explore what we can do to change the narrative.
- The “Growth” That Doesn’t Translate into Jobs
First, let’s talk about what we mean by economic growth. It sounds like a good thing, right? Well, yes and no.
Economic growth can come in many forms: more companies, higher profits, bigger markets. But here’s the kicker: that doesn’t necessarily mean more jobs for the people who need them.
Some of the growth we’re seeing is happening in sectors that don’t rely heavily on human labor. Think about automation, tech, and finance industries where jobs may be more specialized or replaced entirely by machines.
So, while the economy expands in some areas, it’s not creating as many entry-level or accessible positions for the average worker, especially for younger people just entering the job market.
- Automation Is Rewriting the Job Description
The truth is, we can’t talk about job growth in 2025 without acknowledging one major force: automation. It’s reshaping industries faster than ever, from robots packing boxes in warehouses to AI doing customer service for big corporations. These technologies are efficient, cost-effective, and they’re not hiring.
While these changes may bring long-term benefits, they’re also creating immediate disruptions. Jobs that were once performed by humans are now being handed over to machines. This doesn’t mean the economy’s shrinking, it’s just shifting. But for workers in industries that are automating, this shift can feel like a punch in the gut.
As a result, many are left scrambling to find new roles or upskill, while others are pushed out of work entirely. In fact, many of the sectors hardest hit by automation are those that typically employ younger, less experienced workers, further deepening the unemployment issue.
- The Gig Economy: More Flexibility, Less Security
Here’s something a little trickier to discuss: the gig economy. Sure, it sounds cool “be your own boss,” work from anywhere, flexible hours. But it’s not the golden ticket it’s often made out to be.
What the gig economy really offers is flexibility, yes, but at the cost of security. Many gig workers don’t have access to healthcare, sick days, or pensions things that traditional jobs provide. It’s a catch-22 for many who want more control over their careers but can’t afford to go without the benefits that full-time employment once offered.
In a time when job stability is more important than ever, the rise of gigs and contracts instead of stable, full-time jobs is pushing many into uncertainty.
- The Skills Gap: An Education Crisis Waiting to Happen
A huge part of the unemployment issue is tied directly to the skills gap. As new industries grow and technology advances, there’s an increasing demand for specialized skills, but not enough people have them. So, while the economy is growing, the demand for skilled labor is outpacing the supply.
For example, fields like digital marketing, cybersecurity, and data science are booming. But how many 18-year-olds are getting out of school and walking straight into a job in these areas? Not many.
Many of us are left stuck between a rock and a hard place without the right skills, we can’t land the higher-paying, long-term jobs. But without experience, we’re not in a position to get the skills we need.
- Reversing the Trend: How Do We Fix This?
So, what do we do about this? Is the future of work doomed to be a bunch of low-wage gigs and robots doing all the work?
Absolutely not. But it’s clear that change is needed and fast.
- Emphasizing Reskilling and Upskilling
The first step is reskilling. Instead of focusing on the “one-size-fits-all” education model, we need to invest in programs that teach adaptable skills. Coding, project management, data analytics, and even emotional intelligence are all high-demand skills. Training programs, online courses, and apprenticeships need to be more accessible to everyone especially young workers who are struggling to break into the job market.
- Supporting the Gig Economy, but with Benefits
The gig economy can’t be ignored, and while it offers flexibility, it also needs a safety net. We need to bring gig workers into the fold of workers’ rights by providing things like health benefits, paid leave, and tax support.
- Leveraging the Power of Technology for Job Creation
Instead of seeing technology as the enemy, we should focus on how it can create more jobs not fewer. For instance, AI could be used to improve healthcare, education, and customer service, creating entirely new sectors. There’s also a huge opportunity in sustainable industries like green tech which could provide thousands of jobs.
- What Can You Do?
This isn’t just a problem for policymakers or employers. It’s up to all of us to make sure the future of work is something that benefits everyone, not just a lucky few. So, what can you do?
- Invest in your skills. The job market is constantly evolving, and so should you. Take courses, build networks, and stay curious.
- Advocate for change. Push for policies that support fair wages, job security, and benefits for all workers especially those in the gig economy.
- Think creatively. The future of work isn’t just about landing a 9-to-5. Entrepreneurship, freelancing, and hybrid models could offer the perfect fit for a generation that values flexibility.
The Bottom Line: Don’t Wait for Change – Create It
The job market may be tough right now, but that doesn’t mean it’s out of our control. Economic growth doesn’t have to come at the cost of job creation, and the future of work doesn’t have to be a tech-dominated, robot-run nightmare. By reskilling, supporting the gig economy, and pushing for better policies, we can flip the script and create a job market that works for everyone.
Don’t wait for someone else to solve this problem let’s create the future of work we want to see, together.
