UK Youth Not in Work or Education Climbs Close to One Million

The number of young people in the United Kingdom who are not in work or education has climbed close to one million, raising fresh concerns about long term labour market challenges and economic inactivity among under 25s.

Official figures show that 957,000 people aged between 16 and 24 were classified as not in employment, education or training in the final quarter of 2025. That marks a rise from 946,000 in the previous quarter and leaves the total just below the recent peak of 971,000 recorded at the end of 2024, the highest level seen since 2014.

The NEET rate now stands at 12.8 percent of young people, slightly up from 12.7 percent in the previous quarter. Although it remains below the 13.2 percent recorded a year earlier, it continues to reflect persistent difficulties for young Britons trying to secure stable work or remain in education. The youth unemployment rate has also reached its highest level in a decade.

Economists often view the NEET measure as a broader indicator of youth labour market health than unemployment alone, as it captures those who are neither studying nor actively seeking work. The near one million figure highlights structural pressures facing younger workers in an economy still adjusting to slower growth and rising costs.

Bank of England Chief Economist Huw Pill recently told parliament that increases in the minimum wage and higher employer national insurance contributions may have made it harder for businesses to hire younger staff. His view aligns with many academic economists, with a majority in a recent survey indicating that government policy changes are a significant factor behind rising youth joblessness.

However, not all analysts agree that policy alone is to blame. Some economists point to wider economic weakness, slower business investment and the impact of automation and artificial intelligence on entry level roles. Technology driven productivity changes may be reducing the number of traditional starter jobs that once provided a pathway into the workforce.

Think tanks have urged the government to respond with targeted interventions. The Resolution Foundation has called for expanded access to work placements and apprenticeships, arguing that practical experience can help bridge the gap between education and employment. There have also been suggestions that adjustments to wage policy could ease pressure on employers considering hiring younger workers.

The latest figures come ahead of a fiscal statement from Chancellor Rachel Reeves, where measures aimed at boosting participation and supporting young workers could be outlined. With economic growth forecast to remain modest, policymakers face mounting pressure to ensure that a generation of young people does not become detached from the labour market.