Today : Nov 21, 2025
Economy
21 November 2025

UK Faces Youth Unemployment Crisis As NEET Numbers Surge

Nearly one million young people remain out of work, education, or training as policymakers and charities push for urgent reforms and bold new strategies.

In late November 2025, the United Kingdom finds itself grappling with an urgent and persistent challenge: nearly one million young people aged 16 to 24 are not in education, employment, or training—a group commonly referred to as NEETs. According to the Office for National Statistics (ONS), between July and September 2025, this figure stood at 946,000, representing one in eight young people and marking an increase of 196,000 compared to 2019. While the number has dipped slightly from the previous quarter, it stubbornly remains above 900,000 since early 2024, and earlier this year hit a recent high of 987,000.

Behind these numbers are stories of frustration, lost opportunity, and the search for dignity. As reported by BBC, the majority of NEETs—580,000—are considered economically inactive, meaning they are not seeking work, while 366,000 are actively unemployed. The reasons for economic inactivity are complex, but a notable driver is the rise in long-term sickness, particularly mental health challenges, which has surged among young people over the past three years. In 2023, nearly one in five NEETs had a mental health condition, according to the Department for Education.

Nathan, a 21-year-old from Leeds, shared his experience with the BBC: "I've gone into a good few interviews now, not knowing what to say. They [The Spear Programme] help you build your confidence going into interviews, so that you are speaking clearly with a meaning of why you're there." Nathan, who was excluded from five schools as a child, now dreams of opening his own gym and is using support from The Spear Programme—a charity that coaches young people with barriers to work—to build a future. "You don't realise between 16 to 21, those ages are when you have to start thinking about what you want to do with your life. The school years matter," he reflected.

The gender dynamics of NEETs have also shifted. Historically, more young women fell into this category, but by mid-2025, the trend reversed: 512,000 young men were NEET compared to 434,000 young women. Megan Williams, who has worked with NEETs for over a decade at The Spear Programme, told the BBC, "A lot of them are struggling to do day to day tasks like get out of bed, get washed, get dressed. Engaging with work and education feels very far away for a lot of them." She urges employers to take chances on motivated young people who may lack experience or qualifications, emphasizing, "There are really work-ready motivated young people out there."

The scale of the problem has prompted a flurry of government and policy responses. The government’s planned "Youth Guarantee" scheme promises that every young person will have access to education, training, an apprenticeship, or, ultimately, guaranteed paid work if they cannot find a job. Secretary of State for Work and Pensions Pat McFadden stated, "We want to make sure every young person has the chance to succeed, no matter where they are from or what their background is." Chancellor Rachel Reeves is expected to unveil more details in the upcoming Budget, including guaranteed work placements for young people on Universal Credit for 18 months without "earning or learning." Those who refuse to participate may risk losing benefits.

To better understand the roots of youth inactivity, former Health Secretary Alan Milburn will lead an independent investigation, focusing particularly on the impact of mental health conditions and disability. The Centre for Social Justice (CSJ), a think tank analyzing the latest ONS and HMRC data, warns of a "toxic cocktail" affecting young people: rising employment taxes, perverse incentives to claim benefits, and a migration system that, they argue, is not working in favor of British youth.

Joe Shalam, Policy Director at the CSJ, told reporters, "Every single young person outside of mainstream work or training risks becoming a tragedy of wasted potential. The utter dysfunction in the labour market is holding back our economy." The CSJ’s recent "Wasted Youth" report highlights that rising employment costs are deterring employers from hiring young British workers, while businesses increasingly turn to non-EU migrants. Data shows that non-EU under-25s on payrolls increased by 315 percent between 2020 and 2024, even as overall employment for under-25s fell by 44,000 since the previous year.

The CSJ is calling for urgent measures ahead of the 2025 Budget. Their flagship proposal is a "Future Workforce Credit"—a £670 million effective tax cut for employers hiring NEETs, covering 30 percent of a NEET’s salary. Backed by former Cabinet ministers Lord Blunkett and Jeremy Hunt, the credit would be funded by removing the Universal Credit health element for under-22s. Employers would receive the full credit after six months of continuous employment for a NEET hire. CSJ modeling suggests this could get 120,000 young people into jobs and generate £765 million in tax and welfare savings. Other recommendations include reforming mental health benefits, expanding NHS Talking Therapies, and reinstating domestic job advertising rules to prioritize UK workers.

Zooming out to the global stage, the challenge is even more daunting. At the World Bank Group and IMF Annual Meetings in 2025, the focus was squarely on jobs for youth and women. The World Bank revealed that by 2050, about 80 percent of the world’s population will live in developing countries, and within the next 10 to 15 years, 1.2 billion young people will enter the labor market globally, but only 400 million jobs are expected to be created—leaving a staggering 800 million young people without formal employment. The International Labour Organization’s Global Employment Trends for Youth 2024 report underscores that young people are almost three times more likely to be unemployed than adults.

During a Townhall session, the World Bank outlined its three-pillar jobs strategy: foundations (infrastructure, education, healthcare), policy (creating fair business environments), and capital (mobilizing private investment). A World Bank-supported agricultural program in Ethiopia created nearly one million jobs, almost half for women and youth, serving as a beacon of what is possible. The Bank’s approach emphasizes creating jobs where people already live, reducing the need for unsafe migration, and investing in job-rich sectors such as energy, agribusiness, healthcare, tourism, and value-added manufacturing.

Technology was also a key topic, with discussions around "small AI"—artificial intelligence tools tailored for local realities to create jobs rather than replace them. The World Bank and UNDP have both found that employment not only improves well-being but also strengthens civic participation and social cohesion. As one participant put it, "Jobs are the surest path to dignity."

With the UK’s youth unemployment crisis echoing global trends, the message from policymakers, charities, and international organizations is clear: the stakes are high, but so is the potential. The coming months will test whether bold policy moves and targeted investment can turn the tide for a generation at risk of being left behind.