‘The NEET crisis is our biggest social mobility test’

A growing youth employment crisis

The recent Young People and Work: Interim Report warns that the UK is facing a growing youth employment crisis. Nearly one million 16–24-year-olds are not in education, employment or training (NEET). This equates to around one in eight young people. And the situation is worsening. The report argues this is no longer a temporary issue but a long-standing structural problem, with youth disengagement becoming more entrenched over time.

An independent review

The report was commissioned by the UK government, but it was written by Rt Hon Alan Milburn, a former cabinet minister, as an independent review. It highlights a significant shift in the nature of the NEET problem. Most young people who are NEET are now economically inactive and not even seeking work. The government believes this is often due to poor mental or physical health and wider social pressures. At the same time, many have never had a job. Entry-level opportunities are declining and young people face barriers such as lack of experience, limited careers guidance, and an education system that prioritises exams over employability.

Overall, the report concludes that young people are being failed by a system that the government claims is “not fit for purpose” despite most wanting to work and contribute. Without major reform across education, employment and health services, the government warns the UK risks creating a “lost generation”. It claims this will lead to lasting consequences for individuals and a £125 billion annual cost to the economy.

Industry insight

Sector experts broadly support the report’s central argument. They agree that youth disengagement is a serious and growing problem requiring urgent, systemic reform.

Social mobility and access to opportunity

Dani Payne, head of Education and Social Mobility at Social Market Foundation, responded to Alan Milburn’s report, saying:

“Alan Milburn is right about the risk of a ‘lost generation’ unless there is urgent action to tackle the NEETs crisis. These are often the young people facing the greatest barriers to opportunity, and if we are serious about improving social mobility, they must be the priority. We need a system that keeps options open for longer, strengthens technical and vocational routes, and gives all young people meaningful access to work experience, careers guidance and pathways into stable employment, rather than these too often being the preserve of only the most advantaged.”

Concerns on policy and employer pressures

Jamie Cater, senior policy manager – Employment and Skills at Make UK, said:

“Make UK welcomes the publication of Alan Milburn’s interim report on young people and work, as the number of NEETs surpasses one million.

“The report rightly notes that many structural barriers to young people entering the labour market are longstanding. However, the Government must recognise that recent policy decisions risk reinforcing, rather than reversing, current trends. Investment in full level 2 and 3 apprenticeships should be the top priority and must not come at the expense of management training that helps young people succeed in the workplace.

“Decisions on the National Living Wage and the Employment Rights Act must preserve sustainable employment opportunities for young people, rather than contribute to the increasingly risk-averse hiring approach already emerging. Piling further employment costs onto businesses, while other costs continue to rise, is not the solution.

“The Government has made a positive start with its Youth Guarantee, but it must go further. Our response to the report’s call for evidence highlighted the need for sustainable apprenticeship funding, proportionate increases in the NLW to maintain pay differentials based on role and experience, and an approach to ERA measures, such as the right to guaranteed hours, that does not restrict entry-level opportunities. The final report, and the Government’s response, should reflect these priorities.”

Skills, progression and future labour market demands

Jude Hillary, co-head of UK Policy and Practice at NFER, said:  

“We welcome that the report highlights the need for more joined-up support to help young people successfully transition into education and employment.

“NFER’s Skills Imperative research has consistently shown that too many young people face barriers accessing the skills, guidance and opportunities needed to thrive in the labour market. This research highlighted that most of the new jobs created in the future labour market will be in high-skilled occupations whilst jobs in most low- and mid-skilled occupations are set to decline. It is therefore essential that young people leave education with a strong base of the essential employment skills, such as communication and problem-solving, which are needed to enter these higher-skilled jobs.

“If apprenticeships and technical pathways are to play a stronger role in tackling youth inactivity, policymakers must focus not only on participation, but also on ensuring young people, particularly those facing disadvantage, are supported to complete programmes and progress into work.”

Education reform and early intervention

Paul Whiteman, general secretary at school leaders’ union NAHT, said:

“This report is right in its emphasis on the importance of the early years, tackling disadvantage and the need to better calibrate the current curriculum and assessment system in order to help young people flourish at school and beyond.

“We have welcomed the government’s moves to prioritise the early years through initiatives including free breakfast clubs and family hubs, but there remains a need for more investment in services like children’s social care and CAMHS.

“Education, and the qualifications on offer, should prepare young people for life after school, harnessing the skills and attitudes they will need to succeed in modern society. But for too long these aims have been distorted and restricted by a wide range of pressures including an over-emphasis on statutory testing, unhelpful accountability measures, and an outdated national curriculum.

“We were pleased that the government’s assessment review recognised that the curriculum is overloaded, and that content needs to be reduced – including to make space for positive additions including financial, digital and media literacy, climate change and sustainability, and speaking skills.

“It did not go far enough though in recognising that current assessment system, which favours high-stakes tests and exams throughout all key stages, is a barrier to demonstrating attainment and progress for some students, including those from disadvantaged backgrounds or who have additional needs. In doing so it can harm young people’s life chances.”