The latest UK NEET youth figures show the number of young people not in education, employment or training has climbed close to one million, intensifying concerns about the country’s youth employment outlook.
Data from the Office for National Statistics (ONS) revealed that 957,000 people aged 16 to 24 were classed as NEET in the final three months of last year, representing 12.8% of that age group. The total rose from 946,000 in the previous quarter, although it remained slightly lower than the level recorded a year earlier.
The figures come amid mounting anxiety among policymakers and economists that young Britons face tougher economic prospects than previous generations.
Youth unemployment pressures build
The ONS data showed a mixed picture across genders. The number of young women classified as NEET increased by 13,000, while the number of young men fell by 2,000. Overall, 510,000 young men and 448,000 young women were not in education, employment or training.
Although the number of economically inactive young people — those not seeking work or study — fell by 34,000 in the quarter, it remained high at 547,000.
Officials said the latest rise in the headline NEET figure was driven mainly by higher unemployment rather than inactivity, with the number of young people actively looking for work climbing to 411,000. That marked an increase of 45,000 on the previous quarter and 19,000 year on year.
Growing fears for a generation
Alan Milburn, the former health secretary who is leading a government review into youth unemployment and inactivity, warned that public confidence in future living standards is weakening.
He said there is a growing belief among parents and grandparents that younger generations may struggle to achieve the same level of prosperity.
“There’s a broader fear that parents and grandparents have that their kids are not going to do as well as we’ve done,” Milburn said. “That’s the first time that’s really happened in a century.”
Milburn argued that both government and employers must do more to help young people facing barriers such as mental health challenges enter the workforce.
“Even if someone has anxiety and depression, what we shouldn’t be saying is that automatically means you can’t work,” he said.
Charities warn of “national crisis”
Youth employment charities reacted with alarm to the latest data. Jonathan Townsend, chief executive of the King’s Trust, described the situation as deeply worrying.
“Behind every number is a young person full of potential whose confidence is being eroded and whose belief in their own prospects will begin to fade,” he said.
Economists and business groups have pointed to several structural pressures behind the trend, including higher employer national insurance contributions and moves to align minimum wage rates between younger and older workers.
Some analysts argue these changes have increased the cost of hiring younger staff, potentially discouraging recruitment at entry level.
Policy debate intensifies
The Resolution Foundation has urged Chancellor Rachel Reeves to consider pausing plans to equalise national minimum wage rates when she delivers her spring forecast.
Meanwhile, debate continues over the role of artificial intelligence in reshaping entry-level employment. Some experts fear automation could reduce opportunities for graduates and school leavers.
However, European Central Bank president Christine Lagarde recently said AI had so far boosted productivity without triggering the large-scale job losses many had feared. Bank of England chief economist Huw Pill has also said there is currently limited evidence that AI is significantly driving youth unemployment in the UK.
Government response and funding plans
Work and pensions secretary Pat McFadden acknowledged the figures were concerning and highlighted the longer-term nature of the trend.
“The data underlines the long-term challenge we are facing,” he said, noting the NEET rate has been rising since 2022.
McFadden said the government is investing £1.5bn in programmes aimed at tackling youth unemployment and improving opportunities for young people.
Background to the NEET challenge
The UK has faced persistent concerns over youth participation in work and education since the aftermath of the Covid-19 pandemic, which disrupted schooling, training pathways and early-career hiring.
Youth unemployment in Britain is currently above the EU average, and analysts warn that prolonged detachment from work or education can have lasting effects on earnings, skills and wellbeing.
With the NEET total now approaching one million, pressure is mounting on ministers to deliver targeted reforms that can reconnect young people with the labour market and restore confidence in future prospects.