The number of young people aged 16 to 24 who are not in education, employment or training (Neet) has dipped below the one million mark. According to the latest data from the Office for National Statistics, there were an estimated 981,000 Neets between April and June, a decrease from the 1,012,000 recorded in the previous three-month period.
While this recent decline provides a potential boost to the government’s strategy to combat economic inactivity, the total remains 30,000 higher than it was a year ago. Currently, 13% of young people fall into this category, a figure that remains among the highest in Europe. Of the total, 530,000 are men and 451,000 are women, with the annual increase primarily driven by a rise of 25,000 in the number of young men out of work or training.
Despite a growing economy and robust corporate profits, many businesses have been hesitant to hire younger staff. A recent report from the Work Foundation thinktank indicated that over one-third of employers have reduced their entry-level job openings over the past year. Experts suggest that the rise in mental health challenges following pandemic-related isolation, alongside the increasing adoption of artificial intelligence for entry-level tasks, may be contributing to these hiring difficulties.
The government is treating the situation as a “national cause,” with Work and Pensions Minister Pat McFadden emphasizing the need for urgent action. To address these systemic issues, former health minister Alan Milburn has been appointed to lead a comprehensive review of youth employment, training, and education services, with recommendations expected this autumn.
Labor unions have expressed concern over the scale of the issue. Paul Nowak, general secretary of the TUC, described the situation as “a crisis,” urging the government to prioritize high-quality employment support and training opportunities. He noted that a strong, expanding economy with a greater number of vacancies is essential to effectively tackling the problem. The report also notes that following periods of isolation and time out from education during the Covid-19 pandemic, they have also highlighted the rise in cases of mental illness among young people. The report also notes that a report this week by the Work Foundation thinktank found that more than one in three (36%) employers have reduced the number of entry-level jobs available to people aged 16-24 in the last 12 months. The report also notes that the ONS said the annual increase of 30,000 was largely among young men, with an increase of 25,000 on the year, as well as an increase among young women of 4,000 on the year.
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