Britain’s youth unemployment crisis has spiralled to such an extent that it now outstrips even the long-troubled economies of southern Europe, in a damning indictment of the country’s faltering jobs market under Labour’s watch.
New figures from the Resolution Foundation reveal that more than 900,000 young people aged 18 to 24 were not in employment, education or training last year, the highest level recorded since 2005. The proportion classified as so-called Neets has climbed sharply to 15 per cent, up from 13 per cent in 2019.
The stark rise leaves Britain lagging behind countries once synonymous with youth joblessness, including Spain and Greece, both of which have managed to drive their rates down below the UK’s level. Among 22 comparable European economies, only Italy and Lithuania now fare worse.
The figures lay bare the scale of the challenge facing Chancellor Rachel Reeves, who is under mounting pressure to reverse a surge in worklessness among the young.
Experts point to a toxic mix of factors behind the worsening picture, including a weakening labour market, a failing vocational training system and a sharp deterioration in young people’s mental health. The report found that 21 per cent of young people now report a long-term health condition that limits their ability to work, up from 14 per cent just five years ago.
More than half of the increase in Neet numbers since 2019 has been linked to a softer jobs market, yet analysts warn this does not tell the full story. A growing proportion of young people are not simply unemployed, but economically inactive, often citing health-related barriers.
At the same time, the benefits system appears to be entrenching the problem. The number of young claimants not required to engage in work or training has nearly doubled, from 160,000 to 300,000. According to the think-tank, a staggering 94 per cent of young people claiming Universal Credit for health reasons face no obligation to prepare for employment.
Critics say Labour’s policies are making matters worse. Dame Harriett Baldwin, the shadow business minister, blamed rising employment costs and regulation for choking off opportunities.
“We warned the Government that by hiking the cost of employing a young person by £4,000 and bringing in the Employment Rights Act they’d have a devastating impact on the job opportunities of young people. It’s tragic to see these predictions coming true,” she said.
In contrast, several European nations have made significant progress. Italy and Ireland have reduced their Neet rates by 13 per cent and 16 per cent respectively over the past 15 years, while the Netherlands boasts the lowest rate overall, at just under 5 per cent. Spain’s rate has fallen below 10 per cent, with Greece just under 15 per cent.
Analysts attribute much of this success to stronger vocational education systems abroad. Julia Diniz, of the Resolution Foundation, said: “Relative to the UK, other countries are a lot better in vocational education. In the Netherlands, we have found that the perception of vocational education is a lot more accepted. It’s probably the policy area that could most have an effect on Neet rates.”
Despite the worsening crisis, Labour ministers insist they have a plan. The Government has pledged £2.5 billion for a “youth guarantee” scheme aimed at delivering one million opportunities for young people, alongside incentives for employers, including a £3,000 payment for hiring under-25s who have been on Universal Credit for more than six months.
A Department for Work and Pensions spokesman said: “Too many young people are locked out of opportunity, work and education – and we are determined to change that by shifting from a welfare state to a working state.
“Backed by £2.5bn, our Youth Guarantee will deliver a million opportunities across the country, ensuring every young person has the chance to earn or learn, whilst Alan Milburn’s review is investigating the barriers stopping young people from getting into work.”
Yet with unemployment among 16 to 24-year-olds rising to 15.3 per cent in the three months to September, overtaking the EU average, and the overall UK jobless rate climbing to 5.2 per cent, the highest since the pandemic, critics argue the situation is rapidly slipping out of control.
For many, the figures paint a bleak picture of a generation increasingly sidelined, with Labour accused of presiding over a deepening crisis that risks leaving hundreds of thousands of young people without a foothold in the world of work.
