A growing number of young people in the UK are struggling to adapt to the workplace because of rising anxiety, poor mental health and the long-term impact of social media, according to a major government-backed review into youth unemployment and economic inactivity.
Alan Milburn, the government’s employment adviser and former Labour health secretary, is expected to warn that Britain faces the risk of “writing off” an entire generation unless employers and policymakers radically rethink how young people are supported into work.
Milburn’s interim report, commissioned by Prime Minister Keir Starmer, focuses on the growing number of young people classified as Neets — those not in education, employment or training.
The review comes as the UK faces mounting concerns over youth mental health, falling workforce participation and growing pressure on employers struggling to recruit staff following tighter immigration policies and declining migration levels.
Nearly One Million Young Britons Outside Work or Education
Official figures show that around 946,000 people aged between 16 and 24 in Britain are currently not in education, employment or training.
That means roughly one in every eight young people in the UK is disconnected from work or study.
More than half of this group have never held a job, while about a quarter are considered unable to work because of long-term illness or disability.
Mental health has become one of the biggest drivers behind the crisis.
According to data cited in the report, 43% of economically inactive young people who cannot work say mental health conditions are the primary reason, a sharp rise from 24% in 2011.
Milburn is expected to argue that anxiety, depression, neurodiversity and the psychological impact of constant digital engagement are reshaping how young people function socially and professionally.
Social Media and Smartphones Under Scrutiny
The report places significant attention on the influence of smartphones and social media on younger generations.
Milburn reportedly argues that young people’s lives have become dominated by digital culture, with many spending most of their time online and isolated from traditional social or workplace experiences.
He described today’s young adults as a “bedroom generation” that is permanently connected to digital platforms but increasingly disconnected from face-to-face interaction and workplace culture.
According to Milburn, constant online activity may be contributing to disrupted sleep, shorter attention spans, rising stress levels and difficulty adapting to structured work environments.
He stressed that the issue is not laziness or lack of intelligence among younger people.
Instead, he argues they are growing up under very different social and technological conditions compared with previous generations.
“They are not snowflakes,” Milburn reportedly says in the review. “It is an anxious generation.”
Businesses Urged to Modernise Working Practices
Milburn’s report is expected to warn businesses that traditional workplace models may no longer meet the needs of younger workers.
He is calling on employers to introduce more flexible working arrangements, stronger mental health support systems and better pathways into employment for young people struggling with anxiety or other challenges.
The review suggests that outdated workplace expectations may be pushing many young adults further away from employment instead of helping them integrate into the labour market.
Businesses are also being warned that failing to respond could deepen Britain’s labour shortages and damage long-term economic growth.
The findings come at a time when many sectors across the UK are already facing recruitment difficulties, particularly after post-Brexit immigration restrictions and tighter visa rules reduced the availability of overseas workers.
Economic Risks Facing the UK
Milburn reportedly warns that the continued rise in youth economic inactivity could become an “economic catastrophe” if left unresolved.
Economists have repeatedly warned that long-term unemployment at a young age can have lasting consequences on income, confidence and career development.
Research shows that people who experience unemployment before the age of 23 are more likely to face lower wages and weaker employment prospects even decades later.
The UK government has increasingly focused on boosting economic participation as Britain struggles with slowing productivity growth, labour shortages and rising welfare costs.
Recent migration figures also showed net migration to the UK falling sharply to around 171,000 last year, down significantly from the record levels seen in 2022.
Milburn is expected to argue that Britain cannot afford to leave hundreds of thousands of young people outside the workforce while employers continue reporting labour shortages.
UK Compares Poorly With Other Developed Countries
The government has acknowledged that Britain performs worse than many comparable countries when it comes to youth economic inactivity.
The UK has roughly double the number of Neets compared with countries such as Japan and Ireland, and about three times as many as the Netherlands.
These international comparisons have increased pressure on ministers to address the issue more aggressively.
Education experts and labour market analysts say the problem has been building for years but worsened significantly after the Covid-19 pandemic.
Lockdowns, remote learning and social isolation are widely believed to have intensified anxiety and disrupted social development among many teenagers and young adults.
Schools and Education System Facing Criticism
The debate has also triggered criticism of Britain’s education system.
Peter Hyman, a former adviser to both Tony Blair and Keir Starmer, recently warned that schools risk becoming a “pipeline” into worklessness if reforms are not introduced.
Hyman has called for radical changes to education policy, including stronger life skills education and possible restrictions on social media use among children and teenagers.
The growing concerns mirror wider debates across Britain over youth wellbeing, online safety and the long-term impact of digital technology on society.
Mental health charities have also warned that NHS waiting lists for child and adolescent mental health services remain extremely high, leaving many young people without adequate support.
Mental Health Crisis Increasing Pressure on Employers
Employers across Britain are increasingly reporting challenges supporting younger workers struggling with stress, anxiety and burnout.
Human resources specialists say younger employees are more likely to request flexible schedules, hybrid working arrangements and mental health accommodations.
At the same time, many businesses say they are still adapting to post-pandemic working patterns and changing employee expectations.
Experts warn that unless businesses modernise workplace culture, recruitment and retention problems may worsen.
Milburn’s report is expected to urge both government and employers to stop viewing young people simply as unwilling to work and instead recognise the broader social and psychological pressures they face.
The findings are likely to fuel major political debate over welfare reform, education policy, workplace rights and social media regulation in the months ahead.