Helping Generation Z connect with the workplace will require more than just job opportunities—it will demand better planning, earlier intervention and a more coordinated approach to skills development.
That’s the conclusion from the British Chambers of Commerce (BCC), which says effective skills planning is “vital” to improving engagement among younger workers.
Its latest report examines Local Skills Improvement Plans (LSIPs), finding they have already made a meaningful impact. Thousands of employers, training providers and learners have been brought together to better align education with the needs of businesses—delivering stronger employment outcomes in the process.
But the report also highlights clear gaps. A fragmented funding system and limited ability to target younger age groups have meant that opportunities are being missed—particularly when it comes to reaching people before they disengage from education or work.
The scale of the challenge is significant. Nearly one million Gen Z individuals are currently not in employment, education or training, raising concerns about long-term economic participation and skills shortages.
The BCC argues that earlier intervention is key. At present, there is limited influence over education for under-16s, reducing the ability to shape pathways into work at a critical stage. There is also potential to expand the LSIP model further—both in terms of business support and how it connects with young people directly.
One proposal is to better align the government’s Youth Guarantee scheme with employer representative bodies (ERBs), which already have insight into local labour market needs. By linking these initiatives, the report suggests, clearer and more effective routes into employment could be created.
Kate Shoesmith, Director of Policy at the BCC, said that while LSIPs have delivered strong results so far, more needs to be done to prevent young people from drifting away from the workforce. The longer that gap persists, the harder it becomes to re-engage.
The tools to address the issue, she argues, are already in place. What’s needed now is sustained funding and the authority to scale these efforts—turning isolated success into a more consistent, nationwide approach.
For businesses and policymakers alike, the message is clear: engaging the next generation will require not just opportunity, but structure, coordination and long-term commitment.
