- The number of 16 to 24-year-olds classed as NEETs (not in education, employment or training) has surpassed one million for the first time since 2013
- 13.5% of young people were classed as NEETs between January and March this year – up by 1 percentage point compared with a year ago
- 613,000 NEETs were classed as economically inactive – the highest level since records began in 2001
Danni Hewson, AJ Bell head of financial analysis, comments on the latest ONS data on NEETs:
“Sadly there were no real surprises in today’s NEET data, or in the review carried out by Labour peer Alan Milburn looking at the factors which have created what has been dubbed a ‘lost generation’ of workers.
“A record 613,000 of the more than one million 16 to 24-year-olds not in employment, education or training were also classed as economically inactive. Many of them are simply stuck and disillusioned by their experience of trying to climb the first step of the employment ladder.
“Trying to find first jobs has become increasingly difficult, with both the retail and hospitality sectors bearing the brunt of changes to employer National Insurance (NI) in April 2025. Those entry level roles, such as a Saturday job washing dishes, a paper round or shelf stacking at the local convenience store, help develop the soft skills and work readiness that employers are looking for.
“It’s a catch 22 situation for many young people. They are told they need experience to find a job but can’t get that experience without first getting a job.
“The increased cost of labour, the disproportionately large jump in the national minimum wage for under 18s, the lowering of the NI threshold and changes to employment law have all given employers pause for thought. If those measures hadn’t come in at a time households and businesses were still trying to recover from the impact of the first cost of living crisis, the result might not be as severe.
“Businesses have cut back on their labour force, in some cases assisted by AI advances which deliver productivity gains today. That could prevent tomorrow’s workforce from being given the opportunity to develop the skills that will be needed when older workers retire, particularly in the retail and hospitality sectors.
“The cost isn’t just something to be counted in the future. Not only are these young people not contributing to the public purse through the tax system, but they are also being supported by it in growing numbers.
“Whilst the government has said it is supporting more young people to get into work, there’s a danger that by the time any meaningful change is made, many of the million youngsters struggling today will have been left behind.”
