“Too many young people are locked out of opportunity"
Nearly one million young people in Britain are now not in education, employment or training, and the UK has one of the worst rates in Europe.
A report from the Resolution Foundation warns Britain now has the third-highest level of young people outside work or education among Europe’s richest countries, behind only Italy and Lithuania.
The thinktank says this is not a short-term issue caused by a weak economy alone.
Rising mental health problems, poor vocational education, a weak benefits system and fewer job opportunities have all pushed Britain backwards compared with countries such as Germany, Denmark and the Netherlands.
With government pressure growing and former Labour health secretary Alan Milburn leading a review into youth unemployment, attention is now on how ministers plan to reverse the trend.
Why More Young People are being Left Behind
The number of 18- to 24-year-olds classed as Neet has risen from 13% in 2019 to 15% in 2025.
That means around 900,000 young people are now outside education, employment or training, the highest figure in more than a decade.
The UK now performs worse than comparable economies, including Germany and Denmark. Its Neet rate is also more than three times higher than the Netherlands, showing the problem is not simply global economic pressure but a specific failure in Britain.
The Resolution Foundation blamed what it called a “quartet of causes”: rising ill-health, weak vocational education, a hands-off benefits system and a worsening jobs market.
A weaker labour market explains just over half of the increase since 2019.
Business leaders have criticised Chancellor Rachel Reeves after her £25 billion rise in employer national insurance contributions, alongside minimum wage increases and stronger workplace rights, arguing it has made hiring more expensive.
However, the report says youth unemployment is not unusually high compared with previous downturns, meaning tax rises and labour costs are only part of the issue.
The other major cause is worsening health, particularly mental health. More young people are reporting conditions that stop them from working or studying, creating longer periods of economic inactivity.
Why the Benefits System is Facing Criticism
The report also says Britain’s benefits system is failing young people by offering too little support and too few expectations.
Since 2019, the number of 18- to 24-year-olds receiving benefits without any requirement to engage with the Department for Work and Pensions has risen from 160,000 to 300,000.
In countries with lower Neet rates, young claimants are usually given stronger employment support and clearer routes back into work. In Britain, critics say too many are left disconnected for too long.
Lindsay Judge, research director at the Resolution Foundation, said:
“Fixing Britain’s Neet crisis starts with investment in youth mental health support and vocational education, and a serious rethink of how young people interact with the benefit system.
“That is how countries like the Netherlands keep their Neet rate a third of ours.”
Labour has promised to reform welfare and reduce economic inactivity, but ministers have been criticised for focusing too heavily on cutting costs instead of improving support.
A government spokesperson 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 £2.5 billion, 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.
“Alongside this, we are investing £3.5 billion to provide tailored employment support for sick or disabled people so everyone can get on in life.”
Britain is in the midst of a youth jobs crisis. Nearly one million young people are outside work and education, and the causes go far beyond a weak economy.
Mental health problems, poor training routes and a benefits system that often leaves young people unsupported have all deepened the problem.
Other countries show better outcomes are possible, but that requires serious reform, not short-term fixes.
If ministers want to reduce youth unemployment, they will need to do more than announce reviews. They will need to rebuild the system that helps young people move into work.
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