Economics

One in eight young people still out of work or education ahead of major review

Just under one million young people in the UK are not in education, employment or training (Neet).

Ahead of a significant review, nearly one million young individuals in the UK remain disengaged from education or employment, a status referred to as "Neet." This figure, representing approximately one in eight young people, has prompted concerns about a potential "lost generation."

According to the latest data from the Office for National Statistics (ONS), 981,000 people aged 16 to 24 were classified as Neet between April and June. This data precedes the final segment of a major report by former minister Alan Milburn, which is anticipated to offer solutions to this issue in the coming weeks. Work and Pensions Secretary Pat McFadden has assured the BBC that ministers intend to implement these recommendations.

While the current Neet figures show a decrease from the first three months of the year, when the number exceeded one million (13.5% of the 16-24 age group), they have risen by 3% compared to the same period last year, when 951,000 young people were Neet. The ONS notes that estimates based on smaller subsets, like Neets, exhibit more "variability," suggesting that long-term trends are more indicative than short-term fluctuations.

Asia Mason, 22, from London, exemplifies the challenges faced by many. After graduating college with a health and social care qualification, she spent over two years applying for jobs, including more than 30 in maternity, only to be consistently told she lacked experience. "I remember thinking, 'How am I supposed to get experience if nobody is willing to give me the opportunity to gain it?'" she recounted. Mason eventually secured her first NHS role after completing a social care program through The King's Trust charity, which provided her with valuable experience and confidence.

Work and Pensions Secretary Pat McFadden acknowledged the "long-term challenge for young people" despite a "robust" UK labour market. He expressed anticipation for Milburn's recommendations, stating, "We'll have proposals, legislation, if necessary, to take those forward." McFadden made these comments during a visit to Boots in Nottingham, where young people were participating in a pilot of the government's Jobs Guarantee scheme. This initiative aims to support 90,000 young people over the next three years who have been claiming Universal Credit and seeking employment for 18 months, funding 25 hours of paid work per week for six months.

McFadden also outlined plans for 300,000 additional work experience placements and 50,000 more youth apprenticeship starts. He highlighted the government's existing £3,000 hiring incentives for employers who recruit young people unemployed for six months or more.

The increase in Neet numbers between April and June compared to the previous year was predominantly among men, with an estimated 25,000 more men classified as Neet, compared to 4,000 more young women. The initial part of Milburn's government-commissioned report, released in May, attributed the rise among men to "complex" factors, including health issues, the "erosion of traditional employment routes," and "a growing gap in educational outcomes."

Milburn's report also emphasized that the "Neet problem is grounded in social disadvantage," noting higher rates among young people who have experienced poverty, have special educational needs or disabilities (SEND), lack GCSE-level qualifications, or are Black, African, and Caribbean. The report cautioned that without intervention, one in six young people could be out of work in five years, warning of "a lost generation." It also highlighted the frustration of young jobseekers, who often submit dozens, even hundreds, of applications, with rejections becoming commonplace. Recent BBC analysis revealed a quadrupling of competition for degree apprenticeships in England via the government's "find an apprenticeship" service over the past three years.

The second and final installment of Milburn's report, which will include recommendations for addressing these issues, is expected in the coming weeks.

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