NEW figures showing one in eight young people not in work or education shows “the pipeline into work is broken” for many and small businesses are struggling to afford to hire, experts warn.
The latest Labour Force Survey (LFS) estimates for England show a total of 839,900 16 to 24-year-olds were not in education, employment or training (NEET) between October and December 2025. That is 13.3%, over one in eight young people in that age range.
The latest estimate shows an annual decrease in the NEET rate of 0.3%.
It should be noted that of those NEET, 2.2% were unemployed for more than 6 months – the highest rate since 2014 and an annual increase.
England estimates show that young men are more likely than young women to be NEET, 14% of all male 16 to 24-year-olds were estimated to be NEET, compared with 12.7% of females.
The male NEET rate has fallen since last year by 0.6%, and the female NEET rate has remained fairly stable – but is now the highest since 2014.
The pipeline into work is broken
Dariusz Karpowicz, Director at Doncaster-based Albion Financial Advice, said businesses are not hiring young people because costs have spiralled.
He added: “The problem is what’s hiding behind it: a growing share of young people with sky-high expectations and very little to back them up. When entry-level roles cost nearly the same as hiring someone experienced, why would any business take the risk?
“Add day-one employment rights and rising minimum wages for under-25s, and you’ve made the youngest workers the most expensive gamble on the payroll.
“That 2.2% stuck unemployed for over six months, the worst since 2014, tells you the pipeline into work is broken. We don’t need more degrees. We need more plumbers, sparks, and a serious rethink of what “career” means at 18.”
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said better routes into work need to be created for young people.
She added: “These figures show an economy that is still not working properly for a big chunk of young people, even when the headline picture tries to look more stable. If more than one in eight young people are NEET, and long-term unemployment is rising, that tells you this is not just about motivation, it is about access, confidence, opportunity and whether the jobs on offer are actually realistic, stable and worth staying in.
“For young people, getting a job is one challenge, keeping it is another, especially when many entry-level roles are insecure, low paid or offer very little progression. What worries me most is that the gap can become self-feeding. The longer someone is out, the harder it becomes to get back in.
“What needs to change is not just more jobs, but better routes into work, more practical training, stronger employer support, and a system that stops treating young people like a problem and starts treating them like future economic assets.”
It raises serious questions about the future workforce
Ken James, Director at London-based Contractor Mortgage Services, said the issue is complex.
He added: “With the statistic that around one in eight young people in the UK are not in work, education, or training, it raises serious questions about the future workforce. Is this generation becoming dependent on the ‘Bank of Mum and Dad’, or are they genuinely struggling to find a place in today’s economy?
“While some might suggest it points to motivation, the reality could be more complex. This generation of young people face record housing costs, fewer entry-level opportunities, and a rapidly changing labour market. Many simply lack a clear path into stable work.
“I wonder if bringing back national service through the British Armed Forces might be an option or a pathway, this will not only bolster a dwindling armed forces which will also strengthen defence, but could give young people structure, skills, and purpose. The bigger longer-term issue is economic. A generation disconnected from work means lower productivity, fewer taxpayers, and slower growth. This is not a great future.”
Steven Greenall, Advisor at Rayleigh-based Protect & Lend, said employing young people has become “too risky”.
He added: “I talk to a number of business owners who all say the same thing. Why take on a young inexperienced person when for very nearly the same cost now they can employ someone with experience.
“As well-intentioned Government polices may be, increasing the minimum wage for young people and day one employment rights makes employing the 16-24 demographic too risky for most businesses.
“There is a need to get young people interested in trades such as plumbing or electrics as there is a real need for these skills, but also provide the necessary policies to encourage recruitment.”
Photo by Igor Omilaev on Unsplash.
