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Unemployment: Young People

Treasury written question – answered on 3rd May 2011.

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Photo of Alison McGovern Alison McGovern Labour, Wirral South

To ask the Chancellor of the Exchequer what projection for business planning purposes HM Revenue and Customs has made of the number of 16 to 24-year-olds in employment in (a) 2011-12, (b) 2012-13, (c) 2013-14, (d) 2014-15, (e) 2015-16 and (f) 2016-17.

Photo of David Gauke David Gauke The Exchequer Secretary

For strategic purposes HMRC does not use employment forecasts by age group as they do not always prove reliable and are not critical to its planning. HMRC bases its planning on population growth, and predicted churn in the working population. It does identify the assumed population reaching working age to forecast broad numbers of NI numbers issued. Employment levels by age band are not used, as even if employment is fluctuating HMRC will continue to experience “churn” in the PAYE, tax credit and self-assessment populations, and there is no clear correlation with employment levels that we can rely on.

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