Rising youth joblessness could leave UK facing ‘lost generation’
Synopsis
Nearly one million young people are currently outside work, education or training, according to a government-commissioned review that warns the figure could climb to 1.25 million within five years. The report points to shrinking entry-level job opportunities, falling apprenticeship starts and limited workplace experience as key factors behind rising youth inactivity. Researchers say the trend could have lasting implications for workforce participation and labour market supply.
A new review warns nearly one million young people are outside work, education or training, with the total projected to reach 1.25 million as entry-level jobs and apprenticeships decline.
Key Highlights
- 957,000 young people were classified as NEET in late 2025.
- Milburn Review projects the figure could reach 1.25 million by 2031.
- Around 1.6 million low- and medium-skilled jobs have disappeared.
- Apprenticeship starts have fallen 35% over the past decade.
- 84% of NEET young people say they want work or training.
The UK's youth employment crisis is worsening, as the government-commissioned report predicts that the number of young people not in work, education or training could reach 1.25 million in 5 years.
The alert follows several advanced economies facing labour shortages, skills deficits and ageing workforces, with fears that the failure to connect young people to work at the start of their careers may have significant consequences on their economies in the long term.
Nearly one million already outside the system
The interim results of the Milburn Review, led by former minister Alan Milburn, indicate that 957,000 young people aged 16 to 24 were not in education, employment or training (NEET) in October-December 2025.
According to official labour market data, that's 12.8% of the youth. By 2031, the number could increase to 1.25 million, or one in six young people, according to the review.
The researchers termed the trend a "growing threat" to future participation and productivity of the workforce.
Entry level jobs continue to shrink
The review highlights a reduction in the traditional routes to work.
In the past several years, the number of low and medium-skilled positions has decreased by approximately 1.6 million, and the number of job vacancies in hospitality has dropped significantly since 2022.
The report also revealed that the number of apprenticeship starts has fallen by 35% in the last 10 years, further limiting one of the routes into the labour market.
58% of economically inactive young people have never worked and six out of ten of those classed as NEETs say they have no work experience at all.
A challenge seen across developed economies
The results follow a broader trend of low levels of youth labour market attachment in developed nations.
The Organisation for Economic Co-operation and Development (OECD) data reveals that several countries have since reported high youth inactivity rates despite relatively high levels of overall employment, due to pandemic-induced disruptions.
84% of young people identified as NEET said they wanted opportunities for work or training, indicating that many are ready to enter the labour market if these opportunities are there.
Policymakers will look at how to enhance pathways into the labour market and youth employment outcomes in the near future and the final recommendations of the review are expected by the end of this year.
FAQs
Q1. How many young people are currently outside work, education or training?
The latest figures show 957,000 people aged 16-24 were classified as not in education, employment or training (NEET) during the final quarter of 2025.
Q2. Why is youth inactivity becoming a concern?
The review found fewer entry-level jobs, declining apprenticeship opportunities and limited work experience are making it harder for young people to enter the labour market.
Q3. Could the number of young people outside work and education increase further?
Yes. The Milburn Review projects the NEET population could rise to 1.25 million by 2031 if current trends continue.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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