The number of young people not in education, employment or training has edged closer to one million, underlining mounting pressure on Britain’s fragile labour market and intensifying calls for targeted intervention from ministers.
Official figures from the Office for National Statistics (ONS) show that an estimated 957,000 people aged 16 to 24 were classified as Neet between October and December 2025. That represents 12.8 per cent of the age group, a slight rise on the previous quarter and perilously close to the one-million mark last seen in the aftermath of the global financial crisis.
While the total is marginally lower, by 0.4 percentage points, than the same period a year earlier, the quarterly increase reflects persistent weakness in youth employment prospects, particularly as hiring in hospitality, retail and graduate schemes continues to contract.
The ONS said the latest uptick was driven primarily by a rise in the number of young women classified as Neet. At the end of 2025, 12.2 per cent of young women were not in work, education or training, up on the previous quarter. By contrast, the number of young men in the same category fell slightly.
A young person is considered Neet if they are unemployed and actively seeking work, or economically inactive, meaning they are not seeking work and are not enrolled in education or training. The data shows that the number of unemployed Neets rose 12.3 per cent quarter-on-quarter, while economically inactive Neets fell by 6.6 per cent, suggesting more young people are attempting to re-enter the labour market but struggling to secure roles.
The UK jobs market remains subdued, with vacancies recently falling to their lowest levels in five years. Youth unemployment has been disproportionately affected by employers cutting entry-level hiring in response to rising wage costs and increased national insurance contributions.
Research from the Youth Futures Foundation has pointed to long-term sickness, mental health challenges and neurodivergence as key contributors to rising economic inactivity among young people in recent years.
Joseph, 24, from Solihull, who is autistic and has been unemployed for three years, described the difficulty of breaking into the workforce.
“There’s a real taboo around needing experience to get a job, but only being able to gain experience through a job,” they said. “Confidence can definitely be an issue. I’ve only ever worked one job that’s in person. I didn’t know how things worked, the commute into work, that sort of thing.”
Joseph said autism “can be a barrier but it can also be a strength”, adding that many employers fail to understand this. They are currently being supported by a youth worker from The King’s Trust to help secure paid employment.
Work and Pensions Secretary Pat McFadden acknowledged that youth inactivity represents “a long-term challenge” and said the government was backing 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 placement. Those who refuse may face benefit sanctions, a proposal that has drawn criticism from some campaigners.
An independent inquiry into the rise in youth inactivity, led by former Labour health secretary Alan Milburn, is under way and due to report this summer. Milburn has said he will examine systemic failings across employment support, skills provision, health and welfare.
Louise Murphy, senior economist at the Resolution Foundation, warned that the UK was “perilously close” to a youth unemployment crisis.
“Today’s data adds to the picture of a generation up against real and complex barriers to finding a good job and improving their living standards,” she said. “Acting sooner rather than later can help prevent these worrying trends becoming an entrenched crisis.”
The think tank has urged Reeves to make an exception to her policy-light Spring Statement and introduce additional measures to tackle youth unemployment directly.
The data also adds to pressure on ministers over plans to scrap the lower minimum wage rate for 16 and 17-year-olds. Some employers argue that equalising rates would make it too costly to hire younger workers at a time when margins remain tight.
Government sources have indicated that while ministers are reluctant to abandon the pledge, a delay is under consideration.
Ben Harrison, director of the Work Foundation at Lancaster University, said the figures demonstrated “the magnitude of the challenge facing young people and the government”.
“There is a considerable risk that more young people will slip into long-term worklessness unless government acts to address the causes of this rise,” he said.
The last time the number of young Neets exceeded one million was between July and September 2011, in the prolonged aftermath of the 2008 financial crisis. Analysts warn that sustained weakness in entry-level recruitment risks scarring a generation, with long-term consequences for earnings and productivity.
The ONS cautioned that Neet figures can be volatile due to the smaller sample size relative to broader unemployment data. The statistics are derived from the Labour Force Survey, which has faced scrutiny over response rates and data quality in recent years. The ONS says it is working to improve the survey through increased interviewer recruitment and methodological reforms.
For now, however, the headline figure, nearly one million young people disconnected from work or education, stands as a stark reminder of the fragility of Britain’s youth labour market.
Jamie Young
Jamie is Senior Reporter at Business Matters, 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 up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
