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A significant new review has highlighted an urgent crisis facing young people in the UK, warning that unless immediate steps are taken, one in six individuals aged 16 to 24 will find themselves outside education, employment, or training within the next five years. The author of the report, former minister Alan Milburn, described the current education, health, and welfare systems as outdated and inadequate in preparing youth for adulthood. He cautioned that the number of young people classified as NEET—those not in education, employment, or training—is on a trajectory to increase to 1.25 million by 2031.
Milburn emphasized a troubling situation where the initial stages of entering the workforce, what he referred to as “the first rung of the career ladder,” have become inaccessible for too many young people. Employers frequently require prior work experience, yet opportunities to acquire such experience are increasingly limited. The latest statistics reveal a youth unemployment rate of 16.2%, which is the highest since 2014 and significantly greater than the general unemployment rate of 5%. From October to December 2025, nearly 957,000 young people—approximately one in eight—were identified as NEET, with over half not actively seeking employment.
The report underscores that this predicament is not due to a lack of desire among young people to find work. Milburn’s research found that 84% of those surveyed who are NEET want either a job or training. “This is not a failure of young people. It is a failure of a system stuck in the past,” Milburn is set to argue. He insists that the current systems for education, health, and welfare are failing to support youth participation in the labor market, often funneling them toward long-term benefit dependency instead of gainful employment. He described this as a priority issue demanding urgent government attention.
The review includes personal stories illustrating the challenges faced by many young individuals today. Zaynah, 24, has struggled to find employment despite applying for over 200 jobs in a year, hampered by physical health issues and limited work experience. Similarly, Luke, a 23-year-old graduate from Central St Martin’s University, has sent out more than 400 job applications but faced repeated rejection, leading him to rely on benefits. In contrast, Rocky’s experience shows a more positive outcome; after a year out of work, he started as a waiter at Nando’s and has since become an assistant manager thanks to mentoring and support from a youth charity. The report also points out that in 2024/25, for every £1 spent on employment support for young people, about £25 was allocated to benefits, highlighting a misalignment in resource distribution. Additionally, over the past two decades, the number of low- and medium-skilled jobs has declined by 1.6 million, while high-skilled roles have increased by 6.3 million, making entry-level opportunities even scarcer.
Business leaders respond to the findings with concern. Rain Newton-Smith, chief executive of the Confederation of British Industry, called the situation “a tragic waste of potential,” stressing that high job creation costs in the UK reduce opportunities for youth employment. Employers have also pointed out challenges posed by rising minimum wages and increased taxes such as employer National Insurance contributions, which complicate hiring young workers. The government, however, defends policies aimed at increasing the national minimum wage and taxing businesses. Political responses have been mixed, with some opposition voices criticizing Labour’s past policies for making the situation harder for young people. The review stops short of offering solutions in this initial phase, with proposals expected in a final report later. Meanwhile, Conservative politicians have accused Labour of being distracted by internal leadership issues instead of addressing the looming generational employment crisis
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