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One in six young people will not be in work or training in five years without action, report warns
bbc.
A recent comprehensive review has issued a severe warning regarding the future of Britain’s youth. Without urgent structural intervention, one in six young people will be disconnected from education, employment, or training within the next five years. Alan Milburn, the former government minister who authored the report, stated that the current systems for education, health, and welfare are "no longer fit for purpose." He argued that these outdated structures fail to adequately prepare young people for the complexities of adult life. Milburn warned that the nation risks creating a "lost generation." The number of individuals aged 16 to 24 who are not working, studying, or training is projected to rise to 1.25 million by 2031.
Milburn identified a critical structural barrier in the modern labor market. He argued that the first rung of the career ladder has become too narrow for many to reach. This situation creates a hopeless catch-22 for young job seekers. Employers frequently require prior work experience for entry-level positions. Yet, the opportunities for young people to gain that initial experience have narrowed or disappeared entirely. This structural barrier prevents many willing candidates from breaking into the workforce, regardless of their motivation to work.
Concerns about youth unemployment are intensifying as new data emerges. Latest official figures indicate that the unemployment rate for individuals aged 16 to 24 has reached 16.2%. This represents the highest level recorded since 2014. To put this in perspective, this rate is more than three times the broader national unemployment rate, which stands at 5%. The review focused heavily on individuals categorized as NEETs, an acronym for Not in Education, Employment, or Training. According to data collected from October to December 2025, there were 957,000 young people classified as NEETs. This figure means that one in eight individuals in this age group was disconnected from the labor market. Furthermore, more than half of these individuals were deemed not to be actively seeking work.
Milburn warned that this number could increase to 1.25 million, or one in six young people, over the next five years if no significant changes are implemented. Work and Pensions Secretary Pat McFadden commissioned the report to help save a generation of young people from long-term unemployment. He welcomed the findings and highlighted existing government actions, such as financial incentives for companies to hire young people and the creation of more apprenticeship opportunities. McFadden also emphasized the government's focus on early intervention measures, including improved support for special educational needs and the removal of the two-child cap on benefits. However, he acknowledged that significantly more work remains to be done to address the root causes of this crisis.
In a speech to the BBC, Milburn revealed a striking economic disparity. The government spends 25 times as much on benefits for young people as it does on supporting them into work. His interim report challenged the common narrative that young people simply do not want to work. Surveys indicated that 84% of NEETs said they desired a job or training. Milburn argued that young people are not to blame for the crisis. Instead, he identified it as a failure of systems that are stuck in the past.
Whether through education, health, or welfare, these systems often fail to enable participation in the labor market. "This is not a failure of young people. It is a failure of a system stuck in the past," Milburn stated. He noted that these systems too often put young people on a path toward a life on benefits rather than in jobs. He insisted that reversing this trend should be the top priority for the government and all citizens. The report also highlighted a significant shift in the job market over the past 20 years. The number of low- and medium-skilled jobs in the UK has fallen by 1.6 million, while higher-skilled positions have risen by 6.3 million. This shift leaves many young people without the specific skills required for the growing number of high-skilled roles.
The human impact of these statistics is evident in the stories of young people trying to find work. SpearZaynah, 24, has suffered from physical ill health and has not held a job since leaving college. Over the past year, she applied for more than 200 positions but received no responses from employers. She explained that her lack of experience makes finding a job very difficult. "So I feel like it's restricting me and I'm not getting jobs," she said. She plans to start volunteering to improve her curriculum vitae.
Luke, a 23-year-old who studied product design at the prestigious Central Saint Martins University, faces similar challenges. Despite trying hard, he has only had one interview as a cleaner, which he did not get. He has applied for more than 400 positions. "It's humiliating," he said. "You think 'okay I've got all the knowledge, I've got all the skills, all I'm waiting for is a job to put it in practice'." The constant rejections have made him depressed, forcing him to claim benefits.
However, there are success stories when support is provided. Rocky had been out of work for a year before joining Nando's as a waiter. Three years later, he is now an assistant manager. Written off at school, he cannot believe how things have turned out. "I'm 23 years old and I'm a manager at Nando's," he said. "I feel happy with myself. I can look back and tell my doubters that I made it." He credited his progress to mentoring by a manager and ongoing support from the youth charity Spear.
The report found that in 2024/25, for every £1 spent on employment support for young people, around £25 was spent on benefits. This economic imbalance underscores the urgency of the situation. High street retailers and hospitality businesses, such as restaurants and cafes, traditionally offer the first work experience for many young people. However, vacancies in the hospitality sector have halved in the past four years.
Lord Simon Wolfson, the boss of Next, told the BBC that the retail giant used to receive 10 applications for every shop vacancy two years ago. That number has since risen to 19, indicating increased competition. Rain Newton-Smith, chief executive of the Confederation of British Industry, said the report exposed a "tragic waste of potential." She claimed that reducing the high cost of creating jobs in the UK would open up more opportunities. Some employers argue that hiring young people has become more difficult due to higher minimum wages and increased taxes, such as employer National Insurance contributions.
The government has defended its decision to raise taxes on business and increase the national minimum wage. Last year, Prime Minister Sir Keir Starmer reversed reforms to welfare spending that aimed to save £5 billion a year by 2030, after facing rebellion from his own Labour MPs. The review does not include specific solutions, which will be presented in a final report at a later date.
The Conservative Party criticized the Labour government, saying it is too focused on internal leadership speculation to address the generational crisis. Shadow Work and Pensions Secretary Helen Whately stated that every policy choice Labour has made, from jobs taxes to capping apprenticeship funding, has made it harder for young people to take their first step into work. She described the government's approach as a flurry of piecemeal work programs that the report rubbishes.