Youth unemployment in the UK has climbed again, pushing the number of young people not in employment, education, or training (NEET) to 957,000 in the final quarter of 2025.
The figures, released by the Office for National Statistics (ONS), show that almost one in eight people aged 16 to 24 were outside work or study between October and December.
The increase, up from 946,000 in the previous quarter, has intensified warnings that Britain risks creating a “jobless generation”.
Economists say the rise matters not only for young people themselves, but for the wider UK economy, public finances, and long-term productivity.
What Do the Latest Youth Unemployment Figures Actually Reveal?
The ONS data shows the rise was driven mainly by higher unemployment rather than inactivity.
Youth NEET Breakdown (Oct–Dec 2025)
| Category | Number | Change from Previous Quarter |
|---|---|---|
| Total NEETs (16–24) | 957,000 | +11,000 |
| Unemployed (actively seeking work) | 411,000 | +45,000 |
| Economically inactive | 546,000 | Slight fall |
| Young men | 510,000 | — |
| Young women | 448,000 | — |
The key shift is in unemployment. An additional 45,000 young people were actively looking for work but unable to find it.
David Freeman, Joint Head of Labour Market Statistics at the ONS, said: “The final quarter of 2025 saw a slight increase in the number of young people not in employment, education, and training compared to the previous quarter.
This was driven by higher unemployment, with more young people actively looking for work.”
That detail is important. It suggests young people are not giving up; they are applying for jobs but facing tougher competition.
Why Is Youth Unemployment Rising Now?
1. Are Businesses Holding Back on Hiring?
Employers across the UK have reported slowing recruitment in late 2025. Higher wage bills, increased business costs, and ongoing economic uncertainty have made firms cautious.
Small and medium-sized businesses, which employ the majority of young workers, appear especially hesitant to expand headcount.
2. Is Post-Covid Inactivity Still a Factor?
Working-age inactivity has remained elevated since the pandemic. Some young people who left education during the Covid disruption never fully reconnected with structured training or career pathways.
Although inactivity slightly eased this quarter, it remains historically high compared with pre-2020 levels.
3. Could AI and Automation Affect Entry-Level Jobs?
Alan Milburn, former Labour cabinet minister and current government adviser reviewing rising NEET numbers, warned earlier this week that many young people risk becoming “detached” from the labour market altogether.
He suggested the problem is no longer just cyclical unemployment, but structural disengagement, especially as automation and artificial intelligence begin reshaping entry-level roles in retail, admin, and customer service.
Is the Labour Government Under Pressure Over Youth Unemployment?
The rise has triggered a strong political reaction. Shadow Business Secretary Andrew Griffith accused Prime Minister Keir Starmer of overseeing policies that discourage hiring.
What is causing the rise in youth unemployment?
At our discussion last week, our panel discussed how we can ensure more young people are able to find work.
Tomorrow we’ll get new data showing whether rising unemployment has pushed up the number of young people who are NEET. pic.twitter.com/gBIeaapHcO
— Resolution Foundation (@resfoundation) February 25, 2026
He said: “Labour’s Jobs Tax, economic uncertainty, and their red tape Employment Rights Bill are holding back hiring and creating a jobless generation.”
The criticism comes after the Prime Minister stepped back from deeper welfare reforms amid opposition from Labour MPs. Welfare spending continues to strain public finances, particularly as working-age benefit claims remain high.
However, government sources argue that global economic headwinds and post-pandemic shifts, rather than domestic policy alone, explain much of the slowdown.
How Serious Is 957,000 NEETs in Historical Context?
While today’s figure is below the peak seen during the 2008–09 financial crisis, the upward direction raises concern.
Youth unemployment tends to rise faster than overall unemployment during economic slowdowns. It is often an early warning sign of broader labour market weakness.
Long-term NEET status can have lasting effects:
- Lower lifetime earnings
- Higher risk of future unemployment
- Greater likelihood of long-term benefit reliance
- Reduced national productivity
Economists often describe youth unemployment as “scarring”, meaning early career setbacks can permanently damage income prospects.
What Does This Mean for Young People on the Ground?
For 16 to 24-year-olds across the UK, the statistics reflect daily struggles:
- Apprenticeship availability varies sharply by region
- Graduate job markets remain highly competitive
- Entry-level retail and hospitality roles have thinned in some areas
In towns already facing weaker local economies, opportunities can be limited. A young person without strong qualifications may find it particularly hard to secure stable employment.
The gender split also shows slightly more young men than women are currently NEET, 510,000 compared with 448,000, though both figures remain significant.
