The number of young people aged 16 to 24 who are not in education, employment, or training (NEET) has risen by 30,000 over the past year, reaching an estimated 981,000 in the three months to June. Although this figure represents a slight decrease from the previous quarter, when it surpassed one million for the first time, it remains notably higher year-on-year. The trend has prompted concern among government ministers, particularly due to a sharp increase in young men classified as NEET, who account for 25,000 of the rise compared to 4,000 young women, according to the Office for National Statistics.
The shortage of entry-level job opportunities appears to be a significant factor underlying these figures. Research from the Work Foundation at Lancaster University highlights a nearly 50 percent decline in accessible starter jobs over the past decade, resulting in just one available entry-level vacancy for every three young jobseekers nationally. A survey of 1,001 business leaders revealed that 36 percent had reduced entry-level roles within the past year, citing increased living wages, higher national insurance contributions, and strengthened workers’ rights as major pressures.
Ben Harrison, director of the Work Foundation, described the ongoing decline in entry-level employment as a critical barrier to reducing youth unemployment sustainably. The foundation’s data further indicates that medium and large employers have cut entry-level roles at roughly twice the rate of smaller firms, with 48 percent and 46 percent respectively reducing such positions. Automation and investment in artificial intelligence were reported by 43 percent of employers as contributing to fewer available roles for young people entering the workforce.
Former Labour health secretary Alan Milburn, who is advising the government on youth unemployment, characterized the situation as "a scar on this country," with nearly one million young lives "on hold." Milburn emphasized that most NEET individuals—84 percent according to research conducted for his interim report—are eager to work or study but face significant obstacles. His final report, expected in the autumn, will include recommendations aimed at improving job access for young people.
Business representatives acknowledge the willingness to hire young workers but point to financial and regulatory challenges. Hannah Larsen, policy manager at the British Chambers of Commerce, noted that rising costs and regulatory burdens, including changes to the Employment Rights Act, employer national insurance contributions, and the national living wage, have constrained employers’ capacity to create entry-level jobs.
Chris Goulden, deputy chief executive at the Youth Futures Foundation, described the current figures as a clear indication that youth employment remains a persistent, long-term challenge despite some short-term fluctuations.
Meanwhile, Work and Pensions Secretary Pat McFadden addressed systemic issues within the benefits system, criticizing the rigid division between those deemed "fit for work" and "not fit for work." He argued that individuals with mental health conditions such as anxiety or ADHD often lack adequate support to re-enter employment. McFadden acknowledged that while unemployment sanctions apply to standard jobseekers, these measures are not always appropriate for people classified as unfit for work. He emphasized the government’s intent to better support those with health-related barriers without prematurely writing them off from the labor market.
The combined perspectives from government officials, business leaders, and youth advocates underline the complexity of addressing rising youth unemployment amid evolving economic and regulatory conditions.