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The latest figures reveal a significant increase in the number of young individuals aged 16 to 24 in the UK who are neither in education nor employment, with nearly one million classified as NEET (Not in Education, Employment, or Training). According to official data released by the Office for National Statistics (ONS), approximately 957,000 young people fell into this category between October and December 2025, equating to 12.8% of the youth demographic. This trend reflects the ongoing struggles within the job market, particularly for younger generations.
Youth Employment Landscape
The data indicates that the UK’s job market remains fragile, disproportionately affecting young people, especially following cuts in the hospitality sector and reductions in graduate training programmes. Although the number of NEET individuals has risen slightly compared to the previous quarter, it represents a marginal decline of 0.4% from the same period last year. The ONS noted an increase in the number of young people actively seeking work during the last quarter of 2025, signalling a potential shift in engagement, yet the overall NEET figures remain concerning.
The rise in NEET status has predominantly been attributed to a burgeoning number of young women who are out of work. By the end of 2025, 12.2% of young women were classified as NEET, an increase over the previous quarter. In contrast, the proportion of young men in this category saw a slight decline.
Understanding NEET
A young person is designated as NEET if they are unemployed, actively seeking employment, or economically inactive, which includes those not currently looking for work and not awaiting a start date for a job. The data shows that the number of unemployed young people rose by 12.3% from the previous quarter, while those who are economically inactive fell by 6.6%. It is important to note that individuals engaged in formal education, apprenticeships, or vocational training do not fall into the NEET category.
Pat McFadden, the Secretary of State for Work and Pensions, acknowledged the NEET issue as a long-standing challenge. He emphasised the government’s commitment to support businesses in hiring young people through various initiatives, including apprenticeships. In a prior announcement, Chancellor Rachel Reeves introduced a measure guaranteeing paid work placements for young individuals who have been unemployed or out of education for 18 months. Those who decline this opportunity may face sanctions on their benefits.
Investigating the Causes
An independent inquiry into the rising NEET figures is currently underway, led by former Labour Health Secretary Alan Milburn. The inquiry aims to approach the issue with sensitivity while identifying systemic failures in employment support, education, skills, health, and welfare systems. The findings are expected to be published in the summer.
Historically, the number of NEET individuals peaked in July to September 2011, when it surpassed one million following the 2008 financial crisis. Current estimates from the Resolution Foundation suggest that the UK is perilously close to reaching this troubling milestone once again. Senior economist Louise Murphy urged Chancellor Reeves to reconsider her ‘policy-free’ Spring Statement and to expand support to combat youth unemployment effectively. She stated, “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.”
Calls are also mounting for the government to reconsider its plans to abolish the lower minimum wage for 16 and 17-year-olds, as some employers argue that eliminating this wage will deter them from hiring young workers. While government sources indicate a willingness to delay this policy, a complete reversal seems unlikely.
The Ongoing Challenge
Ben Harrison, Director of the Work Foundation at Lancaster University, remarked on the pressing challenge faced by young people and the government. The persistent high rates of NEET status suggest a looming risk of long-term unemployment amongst this demographic unless proactive measures are implemented. The ONS has acknowledged that NEET figures can be volatile due to a smaller population base compared to broader unemployment statistics. Recent criticisms about the quality of the ONS data, particularly regarding the Labour Force Survey, have prompted the agency to announce enhancements to improve response rates.
Why it Matters
The rising number of young people classified as NEET poses significant implications for the UK’s future workforce and economic health. Addressing the barriers that prevent youth from accessing education and employment is crucial for fostering a prosperous society. If left unchecked, this trend could lead to a generation facing long-term unemployment, diminished economic prospects, and a strained welfare system. Swift action and robust policy measures are essential to reverse this trend and ensure that the potential of young people is not squandered.
