The number of young people in the UK not in education, employment or training (Neets) has risen to nearly one million, according to official data released Thursday, intensifying concerns about the long-term health of the British economy.
The Office for National Statistics (ONS) reported 957,000 individuals aged between 16 and 24 were not working as of December, a figure up from 946,000 in the July-September period. ONS analysts cautioned that the data may be subject to “greater volatility” due to smaller sample sizes.
The increase in Neets coincides with a youth unemployment rate exceeding 16 percent, significantly higher than the overall working population’s unemployment rate of just over five percent. The figures were released as Chancellor Rachel Reeves prepares to deliver the Spring Statement next week.
Work and Pensions Secretary Pat McFadden acknowledged the high number of Neets as a “concern,” characterizing it as a “long-term challenge.” He noted the increase began before July of last year. “The number has been rising since 2022, with the majority of that increase occurring before July last year,” McFadden said.
The Labour government has highlighted its youth guarantee programme and apprenticeship initiatives, particularly those targeting small businesses, as key components of its strategy to address the crisis. However, the Conservative opposition argues that high student loan burdens and the perceived lack of value in some university degrees are disincentivizing young people from entering the workforce.
Shadow Work Secretary Helen Whately stated that nearly one million young people are “completely trapped” as a result of the government’s tax policies.
Economists at the Resolution Foundation have urged Reeves to consider the Neet crisis an “exception” to her current fiscal strategy, which prioritizes adherence to debt reduction targets and allows the Office for Budget Responsibility (OBR) to revise its forecasts annually. They suggest pausing the convergence of the minimum wage with the living wage and expanding Labour’s jobs guarantee scheme.
“Britain is perilously close to having a million young people not in education, employment or training for the first time in 13 years,” said Louise Murphy, a senior economist at the Resolution Foundation. “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. But acting sooner rather than later can support prevent these worrying trends becoming an entrenched crisis.”
The ONS data also revealed a higher increase in the number of female Neets in the last quarter, although men still constitute the majority of the total.
Chancellor Reeves is expected to present the Spring Statement next week, but the government has indicated it will primarily focus on the OBR’s revised forecasts rather than introducing new policies.