The Lead Untangles: The rise of the young NEETs
Despite some signs the jobs market is stabilising there's a generation at risk of being left behind. We explore those Not In Education, Employment or Training.
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Unemployment in the UK is still rising, despite the latest employment figures suggesting the job market is stabilising. In the three months up to August, the unemployment rate rose to a four year high of 4.8 percent while vacancies remained low. Joe Nellis, an economics professor and adviser to the accountants MHA, suggests young people are more likely to be unemployed: ,
So why are Britain’s young people out of work?
The Facts
Official figures published in September put the unemployment rate for young people aged 16 to 24 at 14.5 per cent, up from 13.7 per cent from the year before. The rate of those who are considered economically inactive was 39.2 per cent (down from 40.9 per cent a year prior).
The number of young people Not in Education, Employment or Training (NEET) is at an 11-year high. A government report published in September put the number of young people who were NEET from April to June 2025 at 948,000. The proportion of young people who are NEETshas been rising since 2021, and the current level is the highest since 2014. All in all, around one in eight young people across the country are out of employment, education and training. This is concerning, as being NEET can lead to outcomes like an increased risk of long-term unemployment, a higher chance of ending up in low paid work, and a higher risk of poor mental and physical health, according to the the Royal College of Paediatrics and Child Health/
Disability, poverty and even location have an impact on the likelihood of a young person becoming NEET. Analysis by the Trade Union Congress found that there were regional disparities, with NEETrates highest in East Midlands (21.1 per cent) and Northeast (20.1 per cent) and lowest in the South West (10.7 per cent) and East of England (10.6 per cent). It also found that young people with below Level 2 qualifications are more likely to become NEET and that 30.9 per cent of 24-year-olds do not have Level 2 English and Maths qualification. This is higher for those who received free school meals, with 54.5 per cent not having Level 2 English and Maths.
Why are young people out of work?
The reasons why young people are struggling to find employment are varied. A survey by the King’s Trust from 2022 – when NEET figures had already begun to rise – found that the majority of young people wanted to work and had career aspirations for the next three to five years.
But low vacancies, poor mental health and the inaccessibility of entry level jobs is keeping them locked out of the job market.
There were 9,000 fewer vacancies in the three months to September, making this the 39th consecutive period where vacancy numbers have dropped. Graduate jobs are down by 7 per cent according to the Institute of Student Employers (although school leaver jobs are up) — and competition is fierce, with about 140 applications per grad job, putting university leavers in a difficult position. Some employers are afraid to take a chance on young people when minimum wage and taxes are higher than before.
According to official data, 34% of people aged 18 to 24 reported symptoms of mental disorder, such as depression, anxiety or bipolar disorder in 2021-22. The King’s Trust survey from 2022 found that the most common reason for young people being out of work was a mental health problem or disability.
More recent, the Youth Employment 2024 Outlook report, by Youth Futures Foundation, which surveyed 2,500 young people, found that a third of young people say they have a mental health condition, and of those, nearly nine in ten (85 per cent) believe that their condition affects their ability to either find work, or to function in a professional environment.
People with lower qualifications are at the sharp end of this. According to research by the Joseph Rowntree Foundation, a third of young people with mental health problems and no degree are out of work, compared with 17% of graduates with the same illnesses.
On top of that, young people say that low wages and hidden costs are stopping them from finding work. In the Youth Future survey, around 44 per cent identified low wages in entry-level jobs as the biggest barrier to entering the workforce, while the King’s Trust annual Nat West Youth Index from 2024 found that one in 10 had to turn down a job due to the cost of clothes and transport. Some young people also say that training and qualifications are too expensive.
Some research by youth work charity UK Youth also suggests that stereotypes about lazy and entitled Gen Z workers are fuelling unemployment. One survey of 9,000 young people and 2,000 employers found that found that one in 10 employers have rejected a young person for a job due to their age. In the same survey, more than a third of employers described young people as overly sensitive (34 per cent), while more than one in four (27 per cent) said they are entitled and just under a quarter (23 per cent) called young people lazy and work-shy.
More than a quarter (26 per cent) of young people who have experienced discrimination in the workplace due to their age said it made them not want to work again.
So what’s being done?
The government has announced a Youth Guarantee which will see every eligible young person who has been on Universal Credit for 18 months offered guaranteed paid work. However, those who refuse a job without a “good reason” will lose their access to benefits. The Prime Minister also introduced the target of seeing two-thirds of young people in the UK go to university or study a technical qualification or work “gold standard apprenticeship” by the age of 25.
The issue is being tackled locally, too. In Liverpool, a new scheme called YouthPath, designed by Movement to Work will work closely with local authorities and partners to connect young people with what it calls “life-changing opportunities”.
In Salford, a 12-week employment programme run by charity Greater Manchester Youth Network (GMYN), called Level Up, will provide a four-week work placement tailored to the interests of unemployed young people, hosted by a local employer. The programme also gives the young people 25 hours of paid training, teaching them essential skills, financial literacy, resilience and workplace expectations.
What’s being said?
Laura-Jane Rawlings, founder and CEO of Youth Employment UK, said: “The young people who reach that 18-month point [of unemployment] are likely to have complex barriers — health, disability, housing, care experience, or criminal justice issues.
“The government needs to recognise those challenges and design the jobs guarantee in a supportive way.’”
Referring to the government’s decision to revoke benefits access for young people who refuse work, Felicia Mattis-Rome, CEO of Business Launchpad, said: “Rather than motivating young people, sanctions often worsened outcomes.
“They compounded financial hardship, undermined confidence, and created additional barriers to re-engagement.” ■
About The Lead Untangles: In an era where misinformation is actively and deliberately used by elected politicians and where advocates and opposers of beliefs state their point of view as fact, sometimes the most useful tool reporters have is to help readers make sense of the world. If there is something you’d like us to untangle, email ella@thelead.uk
About the author: Ella is a freelance journalist and social media editor at The Lead specialising in worker’s rights, housing, health, harm reduction and lifestyle.
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