Curse of the NEETs worsens as UK youth employment nears Covid lows

Tuesday, May 19, 2026

Youth employment in the UK is approaching the low levels seen during the COVID-19 peak, driven by factors such as AI advancements, mental health challenges, and rising minimum wages. This decline has prompted a government inquiry into the growing number of young people not in education, employment, or training (NEETs), highlighting urgent concerns about their future economic and social well-being.

Youth employment in the United Kingdom is nearing the low levels recorded during the peak of the COVID-19 pandemic, according to recent analysis by the Institute for Fiscal Studies (IFS). This trend signals ongoing challenges for the country’s ability to integrate young people into the workforce, a key indicator of economic health.

The IFS report highlights a complex interplay of factors contributing to the decline in youth employment. Among these are the rapid advancements in artificial intelligence (AI), which may be reshaping job opportunities and altering the labor market landscape for younger workers. In addition, concerns over mental health issues prevalent among young people have been linked to difficulties in maintaining consistent employment or engaging in education and training.

Rising minimum wages have also been cited as a potential factor influencing employer hiring decisions, potentially limiting the availability of entry-level positions commonly held by young workers.

The situation has attracted government attention, with Alan Milburn appointed to investigate what has been termed the “curse of the NEETs” — young individuals not in education, employment, or training. The current figures approach nearly one million young people falling into this category, raising concerns about their long-term economic prospects and social well-being.

Milburn’s inquiry occurs amid broader policy debates, including guidance from the International Monetary Fund (IMF) advocating for stricter controls on benefit eligibility. The sizeable population of NEETs poses challenges to such policy shifts, as reducing benefits without addressing underlying employment barriers could have adverse social consequences.

The absence of a singular cause behind the rise in youth disengagement complicates efforts to devise effective interventions. Policymakers face the task of balancing economic constraints, technological changes, and social support mechanisms to improve employment outcomes for young people.

As the UK grapples with these pressures, the trajectory of youth employment remains a critical barometer for the nation’s economic resilience and future growth prospects.