Thousands of additional youths remain unemployed even as job search activity increases

Youth Unemployment in the UK Reaches Concerning Levels

Despite a growing number of young people under 25 actively seeking employment, many remain excluded from the workforce. According to the Office for National Statistics, there are currently 957,000 individuals aged 16 to 24 who are not working, studying, or participating in training programs.

This figure increased from 946,000 in the previous quarter, marking the first rise in half a year. More young people have shifted from being economically inactive to searching for jobs, yet securing employment remains a significant challenge.

Many under-25s are struggling to find work, with some experts warning that recent policies on taxation and minimum wage may be making it harder for this generation to enter the job market. The number of young people classified as unemployed has climbed to 411,000 in the last quarter of the year—a level not seen in a decade, up from 366,000 in the preceding three months.

Stephen Evans, CEO of the Learning and Work Institute, noted that while more young people are looking for jobs, many face obstacles in actually getting hired. Barry Fletcher, who leads the Youth Futures Foundation, cautioned that without intervention, even more young people risk becoming disconnected from the workforce, raising the likelihood of long-term unemployment.

Currently, about 12.8%—or one in eight—young people in Britain are not in employment, education, or training (Neet). The UK now has a higher share of Neets than any other G7 nation and most OECD countries.

Economists and business leaders have expressed concern that government measures, such as significant increases in the minimum wage and higher employer National Insurance contributions, have made it more difficult for young people to be hired.

Recent official data shows that the unemployment rate for 16 to 24-year-olds reached 16.1% in the last quarter of the year, the highest in 11 years. Louise Murphy, a senior economist at the Resolution Foundation, suggested that the government should halt further increases to youth minimum wage rates until youth unemployment begins to decline.

The Labour Party has promised to eliminate what it calls “discriminatory age bands” by ending the lower minimum wage rate for workers aged 18 to 20. Ms Murphy urged Chancellor Rachel Reeves to introduce additional support for young people facing difficulties in the upcoming spring budget announcement.

She recommended that Ms Reeves expand eligibility for the jobs guarantee to include more young people and ensure that assistance is provided promptly.

Trends and Demographics Among Neets

Stephen Evans observed that while the number of Neets appears to be leveling off, it remains worryingly high—about 25% higher than before the pandemic. Young men make up the majority, accounting for 510,000 of the total 957,000, but the number of young women classified as Neet also rose to 448,000 in the last quarter of 2025, up from 434,000 previously.

Alan Milburn, former health secretary, is currently leading a government review aimed at addressing the crisis of youth worklessness, with recommendations expected later this year.

Rising Concerns Over Job Security

The increase in youth unemployment is having broader economic effects, dampening consumer confidence and making households more cautious about major purchases due to fears over job stability, according to GfK’s monthly household survey.

GfK’s consumer confidence index declined in February. Neil Bellamy from GfK noted that young adults, who are typically more optimistic than older generations, now have heightened concerns about their employment prospects.

“Unemployment has reached its highest point in nearly five years, fueling anxiety about job security, especially given slow wage growth,” Bellamy said. “With fewer entry-level positions available, those on lower incomes are already feeling the pressure, which could erode the usually positive outlook of younger people.”

Government Response and Initiatives

Work and Pensions Secretary Pat McFadden acknowledged that youth worklessness remains a significant issue, highlighting the long-term challenge it presents. He emphasized that addressing the lack of opportunities for young people is a top priority.

The government has committed £1.5 billion to combat youth unemployment, supporting businesses to hire young workers by fully funding apprenticeships for small and medium-sized enterprises, creating 50,000 new apprenticeships in key growth sectors, and expanding the youth guarantee to ensure every young person has the chance to work or study.