Nearly one million young people aged 16 to 24 in the UK are classified as Neets—not in education, employment, or training—highlighting a growing concern among business leaders and government officials about youth unemployment. Recent data from the Office for National Statistics showed that in the three months to June, there were an estimated 981,000 Neets, marking a year-on-year increase of 30,000. Notably, young men accounted for 54 percent of this group, representing 25,000 of the increase.

The Department for Work and Pensions (DWP) commissioned research as part of a review by former minister Alan Milburn, whose final report on youth unemployment is expected in October. The study surveyed 500 businesses to identify challenges faced when hiring young people. The most commonly cited barrier, named by 41 percent of employers, was a deficiency in “soft skills” and general work readiness. These skills, as outlined by the National Careers Service, include communication, decision-making, organization, and adaptability. Close behind, 40 percent of employers pointed to a lack of relevant work experience, while 32 percent expressed concerns about resilience and 31 percent noted insufficient technical skills among young applicants.

Additional research from the Federation of Small Businesses (FSB) found that 37 percent of employers had struggled to fill vacancies due to applicants’ lack of appropriate soft skills. Tina McKenzie, FSB’s national chair, emphasized the need for educational improvements, stating that expanding work experience opportunities and integrating financial and enterprise education within school curricula could better prepare students for the workplace. She argued that providing foundational knowledge about working life, pay, and enterprise would equip young people with greater confidence and readiness.

Educators largely shared this perspective. A survey of over 1,000 education professionals commissioned for Milburn’s review revealed that 66 percent believed young people’s preparedness for work had declined over the past five years, and 60 percent observed a drop in soft skills during that time. Around three-quarters of respondents felt that the curriculum placed excessive emphasis on exams, and many called for more focus on practical, work-related skills without compromising academic standards.

Despite these concerns, research also showed strong motivation among Neets themselves, with 84 percent expressing a desire to be learning or working. However, the DWP found disparities in confidence levels, with only 36 percent of Neets and 47 percent of all young people aged 18 to 24 feeling ready for work upon leaving education. Fewer than half believed their schools or colleges adequately supported the development of future-ready skills.

Ben Harrison, director of the Work Foundation at Lancaster University, highlighted that employers share responsibility in addressing the issue. He pointed to complaints from young applicants about increasingly complex recruitment processes, including the rising use of artificial intelligence, repeated applications with limited feedback, and expectations for candidates to already possess significant experience before securing opportunities.

Alan Milburn has described the Neet statistics as a “scar on this country” and is expected to include recommendations aimed at reducing youth disengagement in his forthcoming report. Sources close to Milburn noted that while schools must enhance efforts to improve work readiness, employers also need to expand opportunities to help young people transition into the workforce.