Chamber criticises 'lack of progress' on youth rate

Jersey's Chamber of Commerce says its disappointed at what it calls a 'lack of progress' on a dedicated youth rate.

The Jersey Employment Forum has not taken a position on it during this year's minimum wage consultation, and has suggested the Social Security Minister carry out a review during 2027.

Chamber president Eliot Lincoln said:

"Whilst Chamber acknowledges that some full time students in higher education undertaking relevant work experience will be covered by the expanded trainee rate provisions, we are disappointed that consideration of a dedicated youth rate has been deferred.

"Chamber has consistently argued that a youth rate could help improve employment opportunities for younger Islanders and support pathways into work.

"We note the Forum’s recommendation that the Minister considers a review of a potential youth rate during 2027 and look forward to contributing constructively to that discussion."

Alongside the consultation on the minimum wage, which is set to increase to £13.97 from April 2027, the Forum asked a small group of public sector interns, which consisted of recent school leavers and university students, about their thoughts of the idea of a youth rate.

Among the points raised were:

• Jersey doesn’t have the same issues as the UK with high youth unemployment, so there shouldn’t be an incentive to create a youth rate
• On the other hand, it might create an incentive for employers to hire younger employees, but this doesn’t make it right to pay an employee below the main rate, simply because of how old they are
• There needs to be a mature, informed discussion on what kinds of jobs young people aged 16-18 are engaged in. There may not be a problem introducing a rate for those doing a Saturday job for extra pocket money. However, if a 16–18-year-old were living fully independently, they would need a higher rate of pay to cover their costs
• Although it may make superficial sense, such a proposal contains an innate degree of unfairness. On what grounds can it be said that one person’s labour is worth more than another’s? Abandoning the principle of fairness would bode ill for our society as a whole
• Even at a young age, employees will want to achieve a measure of financial independence. A lower rate would not encourage or permit such an aspiration. Young people are just as capable as older adults of managing the money they have
• It’s hard to believe that a relatively small difference between youth and adult minimum wage rates would make or break most businesses
• Many people under 18, and even those at 18 or 19, work because they want greater independence. Some may want to rely less on their parents, while others may not have the option of financial support at home. Others may be saving for future education or living costs. Paying younger people less for doing similar work places them at a disadvantage
• A youth rate could create an incentive for employers to hire younger employees over older workers simply because they are cheaper to employ. While employers should be free to choose the best candidate, decisions based primarily on reducing wage costs could create unfair disadvantages for other jobseekers

The idea was last considered in Jersey in 2012, when the Forum was asked to investigate whether a Youth Rate should be introduced to help tackle youth unemployment, and encourage employers to recruit younger workers by reducing labour costs.

In 2012, the number of 16-24 year olds actively seeking work was 540, and in 2026, it's down to 140.

The Forum said:

"In 2012 the Forum concluded that a youth rate would not provide a "quick fix" to youth unemployment and recommended against introducing an age-based youth minimum wage in Jersey. The Minister accepted that recommendation and decided not to proceed with a youth rate. 

"In the context of the possible renewed consideration of a youth rate or entry-level minimum wage, the Forum accepts that employment conditions are very different today, compared to those in 2012.

"The relatively high level of unemployment then was the driving factor behind the Minister’s commission to the Forum."

The Social Security Minister has said it's something that she will think about.

Senator Elaine Millar said:

"We do not, I believe, have the same issues with youth unemployment that there are in the UK - the UK does seem to be having some real challenges with young people getting into work at the moment.

"I don't believe we have that same issue here, but it would be good just to investigate that and make sure, if there is an issue, how we then deal with it."