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Almost a million young people are out of work or education as the Neet level rises

The number of young people not in education, employment or training has approached one million, underscoring growing pressure on Britain’s fragile labor market and intensifying calls for ministers to intervene.

Official figures from the Office for National Statistics (ONS) show that an estimated 957,000 people aged 16 to 24 were assessed for Neet between October and December 2025.

Although the total is slightly lower, by 0.4 percent, than the same period last year, the quarterly increase reflects continued weakness in youth employment opportunities, particularly as hiring in the hospitality, retail and graduate sectors continues to contract.

The ONS said the latest rise was driven mainly by an increase in the number of young women called Neet. By the end of 2025, 12.2 percent of young women were not in work, education or training, more than a quarter ago. In contrast, the number of young men in the same category decreased slightly.

A young person is considered NEET if they are unemployed and actively looking for work, or economically inactive, meaning they are not looking for work and are not enrolled in education or training. The data shows that the number of unemployed Neets increased by 12.3 percent quarter-on-quarter, while economically unemployed Neets decreased by 6.6 percent, suggesting that many young people are trying to re-enter the labor market but are struggling to find roles.

The UK job market remains subdued, with vacancies recently falling to their lowest levels in five years. Youth unemployment has been disproportionately affected as employers cut back on new hires due to rising wage costs and increased national insurance contributions.

Research by the Youth Futures Foundation has identified long-term illness, mental health challenges and neurodivergence as a key factor in the rise in economic unemployment among young people in recent years.

Joseph, 24, from Solihull, who is autistic and has been unemployed for three years, described the difficulties of breaking into work.

“There is something really unacceptable about needing experience to get a job, but being able to get experience through a job,” they said. “Confidence can be a real problem. I’ve only ever worked one job that I’ve done on my own. I didn’t know how things worked, the commute, that kind of thing.”

Joseph said autism “can be a hindrance but it can also be a strength”, adding that many employers fail to understand this. They are currently sponsored by young people working for The King’s Trust to find gainful employment.

Work and Pensions Secretary Pat McFadden admitted youth unemployment represented a “long-term challenge” and said the government supported apprenticeships and paid work placements.

Chancellor Rachel Reeves has pledged that young people who have been out of work or education for 18 months will be offered a guaranteed paid place. Those who refuse could face benefit sanctions, a proposal that has drawn criticism from some campaigners.

An independent inquiry into rising youth unemployment, led by former Labor Health Secretary Alan Milburn, is underway and will report on it this summer. Milburn said he would examine system failures across employment support, skills provision, health and welfare.

Louise Murphy, senior economist at the Resolution Foundation, warned that the UK is “very close” to a youth unemployment crisis.

“Today’s data adds to the picture of a generation that is up against real and complex barriers to finding good work and improving their quality of life,” she said. “Taking action quickly can help prevent these trends from becoming an entrenched problem.”

The think tank called on Reeves to make an exception to his simplistic Spring Statement on policy and introduce more measures to tackle youth unemployment head-on.

The information also adds pressure on ministers regarding plans to withdraw the minimum wage for 16 and 17-year-olds. Some employers argue that rate hikes will make it more expensive to hire young workers at a time when margins remain tight.

Government sources revealed that although the ministers are reluctant to abandon this pledge, a delay is being considered.

Ben Harrison, director of the Work Foundation at Lancaster University, said the figures showed “the enormity of the challenge facing young people and the government”.

“There is a big risk that many young people will be unemployed for a long time unless the government takes steps to address the causes of this increase,” he said.

The last time the number of young Neets exceeded one million was between July and September 2011, long after the 2008 financial crisis. Analysts warn that continued weakness in entry-level recruitment is a generational risk, with long-term consequences for earnings and productivity.

The ONS warned that Neet figures could fluctuate due to the small sample size in relation to wider unemployment data. The figures are taken from the Labor Force Survey, which has faced scrutiny over the response rate and data quality in recent years. The ONS says it is working to improve the survey by increasing the recruitment of interviewers and changes to the methodology.

For now, however, the headline figure, the nearly one million young people who are disconnected from work or education, stands as a stark reminder of Britain’s youth labor market stagnation.


Jamie Young

Jamie is a Senior Business Correspondent, bringing over a decade of experience in UK SME business reporting. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops. When not reporting on the latest business developments, Jamie is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.



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