UK Youth Unemployment Review Reports Rising NEET Numbers

An interim review commissioned by the UK government projects that the number of young people classified as NEET—neither in education, employment nor training—will increase from roughly 850,000 today to 1.25 million by 2031 if current trends continue.

The report states that 84 percent of NEET young people want work or training but face barriers created by a decline in entry-level positions. It records 1.6 million fewer low- and medium-skilled jobs compared with earlier periods and notes that hospitality vacancies have halved in four years.

Six in ten young people have never held a job, up from four in ten two decades ago, according to the review. Apprenticeship starts have fallen 35 percent over the past ten years. The review concludes that schools, health services, welfare and the labour market are no longer aligned to help young people move into work.

It adds that spending on benefits for young people now outpaces employment-support spending by a ratio of 25 to 1.

Business groups told the review that higher minimum wages and increased national-insurance contributions have raised the cost of hiring younger workers. They urged policy changes that would restore incentives for employers to create entry-level roles.

“A Saturday job in retail changed my life, built my confidence and gave me the skills to build a fulfilling career. We have a chance to provide a similar path to every young person.”

“Business has a central role in giving young people a better deal. It will examine whether adjustments to the youth minimum wage and other employment programmes can reopen routes into work for those currently outside the labour market.”