An analysis of youth employment across Britain highlights stark disparities in job availability for young people, particularly in deprived towns, underscoring the challenges faced by those not in education, employment, or training (NEET). The Institute for Public Policy Research (IPPR) released an index last week ranking British towns by the number of suitable job vacancies for young adults, revealing a pronounced regional divide.
According to the index, areas in southern England generally offer more opportunities, with affluent towns accounting for nine out of ten locations with the highest vacancy rates. In contrast, former industrial regions such as Inverclyde and East Renfrewshire in Scotland continue to struggle with limited prospects, a legacy of deindustrialization that saw many manufacturing jobs disappear and never return. For instance, Rotherham has only one relevant vacancy for every 22 young adults, while the Cotswolds has one vacancy for every four young people.
The report challenges common misconceptions suggesting that young people classified as NEET are unwilling or unmotivated to find work. Alan Milburn, author of an earlier interim report on NEETs, emphasized that 84% of these young people express a desire to be employed. However, geographical disparities severely restrict their opportunities, exacerbating existing inequalities.
The rise in NEET numbers among 18 to 24-year-olds since 2019 has been partly attributed to shifts in the labour market, highlighting the significance of job creation as a policy focus. In response, the government introduced a “youth guarantee” in 2024 aimed at providing six months of paid employment to 18 to 24-year-olds who have been on universal credit for at least 18 months. While considered a positive development, critics note that the waiting period is excessively long and that nearly half of NEETs do not claim benefits, rendering them ineligible for the programme.
In light of these issues, the IPPR has recommended the establishment of a new “youth contract.” This would include short-term job placements targeted at those at risk of becoming NEET, an increase in apprenticeships especially at smaller companies, and expanded access to dedicated work coaches. Such measures are intended to improve the current state of youth employment support.
Long-term employment prospects, however, require a broader strategy to generate sustainable opportunities, especially in regions with limited job markets. Devolving vocational training to local authorities—who have better insight into regional labour demands—has been welcomed, but experts caution against overly optimistic expectations for manufacturing’s role in employment growth. Andy Burnham’s calls for “reindustrialising” struggling regions have been described by some observers as unrealistic, given the global trend of manufacturing jobs declining as a share of total employment, even in heavily subsidized economies like the United States and China.
Economist Dani Rodrik has argued that much of Britain’s future job growth will likely come from sectors such as retail, hospitality, and care rather than manufacturing or high-productivity services. Therefore, enhancing the quality and conditions of work in these industries is deemed essential to providing young people with meaningful employment and career development opportunities, particularly in economically disadvantaged areas.