Study Links Job Quality to Rising Economic Inactivity Among Young People in the UK

James Reilly, Business Correspondent
6 Min Read
⏱️ 4 min read

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Recent research highlights a concerning trend among young workers in the UK, revealing that those employed in low-paid, insecure jobs are increasingly leaving the workforce due to health issues. The analysis, conducted by consultancy Timewise for the Trades Union Congress (TUC), underscores the pressing need to address job quality, particularly in sectors predominantly staffed by younger individuals.

Health Risks Associated with Job Insecurity

The research points to a direct correlation between the type of employment young people engage in—particularly in hospitality, retail, and care—and the likelihood of leaving work for health-related reasons. The study indicates that these sectors are notorious for high levels of job insecurity, with over 40% of employees in the accommodation and food services industry working under precarious conditions, including zero-hours contracts and agency roles.

Clare McNeil, Chief Executive of Timewise, stated, “Insecure and poor quality jobs are contributing to a rising epidemic of inactivity among the young, who have the most precarious, low-mobility jobs of all.” The findings suggest that expecting young people to thrive in such roles, especially when facing disabilities or mental health challenges, is unrealistic.

Job Sectors at Risk

The analysis reveals that the sectors with the highest rates of young workers transitioning into economic inactivity due to ill health are wholesale and retail, food and accommodation, and health and social care. Notably, occupations such as hospital porters, road transport drivers, kitchen staff, and leisure attendants are among those most vulnerable to long-term sickness.

The report calls for a renewed focus on job quality in the forthcoming government-commissioned review of youth inactivity, led by former Labour cabinet minister Alan Milburn. As Milburn prepares to address rising youth unemployment, the study’s authors emphasize the need for policies that improve the quality of employment rather than merely increasing job numbers.

Current Youth Unemployment Landscape

The latest official statistics indicate that 957,000 individuals aged 16 to 24 were classified as not in employment, education, or training (NEET) during the final quarter of 2025, representing 13% of that age group. Alarmingly, nearly half of those in this category report having ill health or disabilities.

In an effort to combat this trend, the work and pensions secretary, Pat McFadden, has announced a £1 billion initiative to incentivise employers to hire young people who have been out of work for six months or longer. This programme will provide employers with £3,000 for each young person they hire, aiming to stimulate job creation in a challenging economic environment.

The Social Contract at Risk

Milburn has voiced concerns that contemporary parents worry their children will have a poorer economic future than they did. “There’s a broader fear that parents and grandparents have, that their kids … are not going to do as well as we’ve done,” he remarked, highlighting a significant shift in the social contract that traditionally saw each generation improve upon the last.

Paul Nowak, TUC Secretary General, reiterated the critical link between job quality and economic inactivity, urging the government to prioritise the implementation of the Employment Rights Act. He stated, “Young people need good secure jobs with decent prospects, including notice of their shifts and sick pay when they’re ill.” He stressed that too many are trapped in low-paid, insecure roles, increasing their risk of exiting the workforce due to health issues.

Industry Perspectives on Employment Quality

Industry leaders are also weighing in on the implications of job quality. Kate Nicholls, Chair of UKHospitality, noted that the sector could provide fulfilling career pathways for young people, but the rising costs of employment are stifling entry-level opportunities.

Similarly, Helen Dickinson, Chief Executive of the British Retail Consortium, cautioned that if provisions within the Employment Rights Act, such as guaranteed hours, are interpreted as threats to flexibility, employers may become more hesitant to offer crucial entry-level roles. This could further exacerbate the challenges faced by young job seekers across the UK.

Why it Matters

The findings presented in this research illustrate a critical intersection between employment quality and the economic stability of young people in the UK. With a significant portion of the youth population struggling to find secure and healthy work environments, the implications for future generations are profound. Addressing these issues not only supports the well-being of young individuals but is essential for fostering a robust economy capable of sustaining its workforce. As policymakers prepare to implement changes, the focus must shift towards creating supportive and resilient job markets that empower young people to thrive.

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James Reilly is a business correspondent specializing in corporate affairs, mergers and acquisitions, and industry trends. With an MBA from Warwick Business School and previous experience at Bloomberg, he combines financial acumen with investigative instincts. His breaking stories on corporate misconduct have led to boardroom shake-ups and regulatory action.
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