One in eight young people across the UK not in work or education

The UK has seen a slower improvement in cutting the number of young people not in education, employment, or training (NEET) compared to other OECD countries, according to a new report by Youth Futures Foundation, the What Works Centre for youth employment. 

Bringing together new data and research, the Youth Employment 2024 Outlook report includes an analysis of twenty years of OECD data and finds that on average, countries have reduced their NEET rates by 25 per cent since 2002, compared to 19 per cent for the UK.

This comes as the latest ONS figures show NEET rates in the UK remain high, with 872,000 16 to 24-year-olds now out of work, education or training. This is nearly a quarter of a million more young people (228,000) than three years ago when NEET rates were at their lowest at 9.5 per cent.

Young people report a more challenging labour market 

The report surveyed 2,500 young people, with three in five (62 per cent) stating they believe that it has become more difficult to find a job than ten years ago. 

Four in ten (44 per cent) say a lack of skills or training is the biggest barrier to entering the workforce, followed by nearly as many identifying low wages in entry-level jobs. 

Young people also view mental health as a major challenge both for entering and progressing within the workplace. A third of young people (31 per cent) say they have a mental health condition, and of those, nearly nine in ten (85 per cent) believe that their condition affects their ability to either find work, or to function in a professional environment.

Over two-fifths (44 per cent) of those young people already in the workplace also perceive that their mental health is a barrier to their progression.

Apprenticeships are part of the solution to address the UK’s NEET problem

The report finds that apprenticeships have broad support among young people, with nearly two thirds (65 per cent) believing that they are a good route to help them into the labour market.  

International evidence brought together by Youth Futures gives confidence that apprenticeships are an important and impactful way to support young people prepare for and access jobs, yet in the UK, apprenticeship participation has fallen significantly for young people over the last few years.

To increase the number of young people in work, education, or training, Youth Futures are calling for policy makers to address the problem on several fronts, including:    

• Increasing opportunities for young people through introducing an Apprenticeship Guarantee for those up to age 24 to ensure a Level 2 or Level 3 apprenticeship is available for every qualified candidate. This is backed by nine in ten employers surveyed by the CIPD
• Trialling more intensive support for marginalised young people in education who are at risk of becoming NEET and increasing the support that schools and colleges can access to help marginalised young people be more prepared for transitioning into employment
• Increasing support for young people to improve their mental health through further funding for school and community-based mental health services

Barry Fletcher, CEO of Youth Futures Foundation, said: “Without action to tackle persistently high NEET rates, a generation of young people will be locked out of the labour market and the scarring effect this will have will be profound.

“By understanding the major challenges that young people face, and expanding opportunities for proven interventions like apprenticeships, more young people can move into the brilliant jobs that are right for them.

“We shouldn’t pretend this issue can be tackled with an easy fix. It is stubborn, persistent, and complex. It requires work across many different parts of Government, civil society, and the business community. But the prize is great with a potential to add £69bn to the economy if we matched the lowest NEET rate in the OECD.

“Getting this right will not just improve the UK’s competitiveness and prosperity, it will help thousands of young people find the pathway in life that is right for them.”

Jayden, Future Voices group ambassador, said: “Seeing the NEET rates remain high is deeply concerning. It reflects the persistent barriers that many young people face in the job market, particularly those from marginalised backgrounds. 

“As a young person looking for work, the experience can be incredibly frustrating and disheartening. I feel as though support and opportunities are insufficient and that the odds are not in your favour as very rarely do people leave education with the necessary skills and experience to progress into work meaning your CV is very easily overlooked.”