Young unemployment fears grow

May 28, 2026

One in six young people could be out of education, employment or training within five years unless urgent action is taken, according to a major new review.

Concerns are growing over rising youth unemployment across the UK. Latest figures show the unemployment rate for 16 to 24-year-olds has climbed to 16.2%, its highest level since 2014 and more than three times the wider UK unemployment rate of 5%.

Official data also revealed that 957,000 young people were classed as not in education, employment or training (NEET) between October and December 2025. That equates to around one in eight people in that age group. More than half were not actively looking for work.

Work and Pensions Secretary Pat McFadden said he commissioned the review to help prevent a generation of young people becoming detached from work. He welcomed its findings and pointed to Government plans to boost employment opportunities.

Measures already announced include financial incentives for businesses hiring young people, alongside efforts to expand apprenticeship opportunities. The Government is also focusing on earlier intervention, including improved special educational needs support and the removal of the two-child benefits cap.

The review found that for every £1 spent on employment support for young people in 2024/25, around £25 was spent on benefits.

It also highlighted a major shift in the jobs market, with 1.6 million low and medium-skilled roles disappearing over the past 20 years, while higher-skilled jobs increased by 6.3 million.

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