UK Youth outside work and education nears 1 million

According to data reported by The Guardian, the number of people aged 16 to 24 who are not in education, employment or training (Neet) reached 957,000 in the final quarter of last year, representing 12.8% of this age group.

The figure marks an increase of 11,000 compared with the previous quarter, when the total stood at 946,000. The rise was largely driven by an increase among young women. The number of young women classified as Neet grew by 13,000, while the number of young men in the same category fell slightly by 2,000. Overall, 510,000 young men and 448,000 young women were recorded as Neet.

Experts say the trend reflects growing difficulties for young people in the labour market. Youth unemployment in the UK is currently above the EU average and has reached its highest level in 11 years. Although the number of economically inactive young people – those not seeking work and not in education – fell by 34,000 over the quarter, it remains high at 547,000.

The increase in the overall Neet rate was mainly driven by rising unemployment rather than inactivity. The number of 16- to 24-year-olds actively looking for work climbed to 411,000, up 45,000 from the previous quarter and 19,000 higher than the same period a year earlier.

Former health secretary Alan Milburn, who is leading a government review into youth unemployment and inactivity, warned that many families fear younger generations may face worse prospects than their parents and grandparents. He suggested that long-held expectations that each generation would enjoy better living standards are now being challenged.

Some economists and business groups have linked the rise in youth unemployment to recent policy changes, including higher employer national insurance contributions and efforts to equalise minimum wage rates between younger and older workers.

The thinktank Resolution Foundation has urged Chancellor Rachel Reeves to pause the planned equalisation of national minimum wage rates in her upcoming spring forecast. It also recommended extending the upper age limit for guaranteed paid work placements from 21 to 24 for those who have been unemployed for 18 months.

Meanwhile, concerns are growing about the potential impact of artificial intelligence on entry-level jobs. Christine Lagarde, president of the European Central Bank, said AI has improved productivity across the eurozone but has not yet triggered widespread job losses, though developments are being closely monitored.

On the same day the data was highlighted, two major companies announced job cuts in the UK, citing technological changes and cost pressures. Ocado revealed plans to reduce its workforce by around 1,000 roles as it expands the use of AI systems, while WPP announced a significant restructuring programme that will include asset sales and staff reductions.

The latest figures add to mounting concerns that without targeted intervention, youth unemployment could become a long-term structural challenge for the UK economy.