JUST under one million young people not in education, employment or training (NEET) is “a national failure” with “severe” economic cost, experts have warned.
The latest data from the Office for National Statistics (ONS) estimates that 981,000 people aged between 16 and 24 were NEET between April and June this year, equivalent to 13% of all young people in that age group.
The figure has fallen from the previous quarter, when an estimated 1.01 million young people, or 13.5%, were not in education, employment or training.
But the number remains higher than a year ago. Between April and June 2025, an estimated 951,000 young people were NEET, representing 12.8% of 16 to 24-year-olds.
Lukas Kaminskis, CEO of Turing College, said we risk creating a “lost generation”.
He added: “Britain cannot afford to let nearly a million young people become cut off from work and education. The small fall since the start of the year is encouraging, but the number has still risen by 30,000 in 12 months. Unless we help more of them find a route back in, fears of a ‘lost generation’ will only grow.
“Young people need simple and practical ways to learn how to use AI, data and other digital tools. A short course followed by a real project can give someone useful skills and something they can show an employer.
“Being out of work or education now does not decide someone’s future. Start with one useful skill, put it into practice and build from there. The government, educators and employers must make those opportunities easier to find before a temporary setback becomes much harder to overcome.”
Lost generation
Nick Connor, CEO of the Institute of the Motor Industry, said there are “too many financial and administrative barriers to taking on young people”.
He added: “The transition from education into work is fragmented and poorly supported, leaving too many young people to navigate a complex jobs and training landscape alone. Those facing additional barriers are particularly at risk of falling through the gaps. This is not a failure of ambition; it is a structural failure.
“Automotive has traditionally provided a vital route into skilled work through apprenticeships, yet starts remain 20-25% below pre-pandemic levels despite strong demand for technicians. Small medium enterprises (SMEs) make up over 95% of the sector but face too many financial and administrative barriers to taking on young people.
“We need front-loaded financial support for SMEs, a simpler apprenticeship system, earlier careers guidance and better links between education and employment. Making it easier for employers to give young people that crucial first step into work must be a priority.”
Kelly Smallcombe, Fractional Chief People Officer at Meliorem HR Consultancy, said graduates are finding there aren’t enough job vacancies.
She added: “Nearly a million young people locked out of work isn’t a mystery, it’s the entry-level rung being kicked away. AI is hollowing out the exact tasks people used to cut their teeth on, while the Employment Rights Bill’s day-one protections make employers more cautious about taking a chance on someone unproven.
“The cost compounds yearly: lost tax, lost skills, lost momentum. My advice to NEETs: stop chasing ‘entry-level’ roles demanding two years’ experience, that market’s broken. Look at apprenticeships in sectors like defence and manufacturing that are desperate to train people, not hire them ready-made, and build your own network, exposure to work can come through people, not job boards.”
Sam Alsop-Hall, Chief Strategy Officer & Co-Founder at Birmingham-based Clive Henry Group, said this young generation is being left behind.
He added: “One million young people out of work is a national failure, not a statistic. It’s a generation we know exactly where to find, and for some groups, including care leavers, the picture is far worse than the headline suggests. The economic cost is severe and self-inflicted.
“A year NEET at 18 scars earnings and health well into your 30. Multiply that by a million and it’s a structural drag on productivity, not a social policy footnote. The root cause is how we tax employers. National Insurance makes a first-chance hire most expensive at precisely the point where the risk is highest.
“We penalise the employer who takes a chance on a young person and reward the one who plays safe. That’s backwards. We should be paying employers to take that risk, not charging them for it. Fix the incentive and the numbers move. To any young person out of work: the system is broken, not you.”
Scars
Clive Bonny, MD at Strategic Management Partners, said student internships are valuable.
He added: “I’m one of four million small enterprises working from home and each year since 2014 I’ve employed a student during summer months to support my work. They join me in all meetings inside and outside and undertake market research for new services. Each week they create a learning log.
“After 10 weeks they can show their learning log to potential employers and quickly win a full time job. If the government offered a small internship subsidy to our four million small enterprises we could accelerate employment for one million student NEETs.”
Justin Brandon, Director at Bournemouth-based Scape Interiors West, said young people need to be more confident.
He added: “I run a small business and recently qualified as a Level 5 coach. We took on a neurodivergent team member who’d been out of education, training and work for three years, and used coaching to help rebuild his confidence. We’ve been impressed by his willingness to try and his work ethic, and we’ve even used vibe coding to build a coaching app to support the process with structured sessions.
“A few things worth naming, for NEETs and small business owners alike: Confidence is often the barrier before skill is. Three years out erodes self-belief far more than actual ability. Coaching that rebuilds belief first often unlocks capability that was there all along. Structured entry points matter more than ‘getting a job’.
“Clear expectations, patience, and adapted communication can succeed where a fast-paced conventional workplace fails. Small businesses can move faster than institutions. We need judgment, patience, and a coaching toolkit. That’s replicable by employers our size.”
Caroline Cavanagh, Anxiety Expert at Salisbury-based Caroline Cavanagh Ltd, said Gen Z have different needs.
She added: “Today’s figures should encourage employers to look beyond recruitment and ask how are they retaining Gen Z staff? After 14 years of working with anxious teenagers, I see a generation entering work with very different experiences, expectations and communication styles to the Gen X leaders who manage them. This isn’t about Gen Z being ‘snowflakes.’
“It’s about recognising that they need a different style of leadership to help them make the contribution they are capable of. Too often, Gen Z are recruited and expected to adapt immediately to a workplace designed by previous generations and not supportive of their skills and experiences.
“The result is anxiety, presenteeism and ultimately resignation. This is a costly cycle of recruiting, training and losing young employees within their first few years. The solution isn’t to lower expectations but to better equip both young employees and their managers to work effectively together. To solve youth employment, retention has to be considered.”
