More than one million young people are now outside work, education or training, with a government-backed review warning the figure could rise sharply within five years. Britain is facing a growing crisis among 16 to 24-year-olds who are not in education, employment or training, commonly known as Neets. According to official figures published on Thursday, more than one million young people now fall into that category, the highest level recorded in over a decade.
An interim review led by former Labour minister Alan Milburn warned the situation risks becoming entrenched, with many young people detached from the labour market for long periods. According to the report, the annual economic cost of the crisis has reached an estimated £125bn.
The findings come amid wider concerns about declining entry-level opportunities, falling apprenticeship numbers and rising levels of economic inactivity among younger people. Milburn said Britain now faces “a genuine generational faultline”.
Rising Economic Inactivity Leaves More Young People Detached from Work
According to figures from the Office for National Statistics, 1,012,000 people aged between 16 and 24 were classified as Neet between January and March 2026, representing 13.5% of that age group. Around 613,000 were considered economically inactive, meaning they were neither working nor actively seeking employment.
Speaking at the launch of the review, Milburn said the nature of the crisis had shifted over the past two decades. “Detachment is no longer temporary for too many young people, it is becoming permanent,” he said.
The report found that nearly six in ten young people currently classified as Neet have never had a job. Twenty years ago, that figure was closer to four in ten. Milburn argued the issue was no longer simply youth unemployment, but a deeper withdrawal from the labour market itself.
According to the BBC, the report estimated that if current trends continue, one in six young people could be outside work, education or training by 2031. Milburn warned that Britain was “at risk of a lost generation”.
The review also linked the rise in inactivity to broader structural issues, including worsening mental health, reduced social confidence after the Covid pandemic and declining access to first jobs. One participant quoted in the report described how lockdowns affected social development, saying many young people “didn’t get used to the social aspect of connecting with people”.
Decline in Entry-Level Jobs Blamed for Worsening Opportunities
The review pointed to a long-term decline in entry-level employment opportunities across Britain. According to the report, the economy now has 1.6 million fewer low and medium-skilled jobs than at the start of the century.
Vacancies in hospitality have halved over the past four years, while apprenticeship starts among young people have fallen by 35% over the last decade. Saturday jobs, traditionally seen as an entry point into employment, were also described as being in “freefall”.
Milburn said this had created what he called a “hopeless Catch-22” for many young people. Employers increasingly expect work experience, while opportunities to gain that experience have become harder to access.
The review rejected claims that migration was responsible for rising youth inactivity. Speaking during the press conference, Milburn said there was “no evidence” linking higher migration levels to the increase in Neets.
Business groups and employers cited in the coverage said rising labour costs had also made it more difficult to recruit younger workers. According to The Independent, Milburn acknowledged that increases to employer national insurance contributions and minimum wages had affected hiring, particularly in retail and hospitality sectors.
The final version of the review, expected later this year, will set out recommendations aimed at tackling the crisis and improving pathways into work for young people.
