It is perhaps proof that Labour’s policies are out of step with the economic reality facing young people.
JD Sports has reported a drop in business, saying youth joblessness is to blame for a decline in trainer sales.
The sportswear retailer said it was facing ‘pressures on our core customer demographic, including rising unemployment levels’.
It comes as official figures showed nearly a million young people were languishing outside the workforce or education system.
Experts say that this group – unburdened by children or a mortgage – generally had the most disposable income but ‘has been disproportionately hit in a slowing jobs market’.
It adds to evidence that Labour’s economic policies are helping to create a ‘jobless generation’.
The update came as official figures showed 946,000 people aged 16 to 24 were not in employment, education or training in the three months to September.
The figure is up from 921,000 in the three months to June last year. Analysis also showed nearly half of the 170,000 jobs shed since Labour came to power in July last year were among under-25s.
JD Sports has reported a drop in business, saying youth joblessness is to blame for a decline in trainer sales (File image)
And separate data revealed a 30 per cent year-on-year rise in redundancy notices being handed out across the workforce.
The number rose to 24,230 in October, up from 18,684 a year earlier when Rachel Reeves delivered her first Budget.
Critics say the Chancellor’s £25billion raid on employer national insurance combined with a rising minimum wage and new workers’ rights policies are crushing hiring.
Tory business spokesman Andrew Griffith said: ‘Next week’s Budget must be a fresh start with the shelving of the trade union unemployment Bill.’
Experts said the problem could get worse as unemployment climbs – recently hitting 5 per cent, the highest level since 2016 excluding the pandemic.
Russ Mould, at investment platform AJ Bell, said: ‘A big part of what had been a highly successful strategy for JD Sports has involved targeting a youthful demographic who, unlike those burdened by outgoings like childcare costs or a mortgage, have more disposable income to splash on trainers and leisurewear.
‘However, recent figures suggest this cohort has been disproportionately hit in a slowing jobs market.’
Tory work and pensions spokeswoman Helen Whately said: ‘This is a slow-motion car crash for the economy.’
