Policy papers, Research reports
Nov 2025
Youth Employment 2025 Outlook
Bringing together the latest data and evidence to inspire effective action.
Summary
Our 2025 report draws on analysis of official statistics and international data to understand the existing barriers and opportunities for young people transitioning into meaningful work, education and training.
It outlines the cost of in-action and presents recommendations for how we can sustainably engage an additional 567,000 young people in the labour market by 2050, boosting the UK economy by £86 billion.
Key insights
The current challenge
Read more about The current challengeOne in eight young people across the UK are not earning or learning. This has increased by a third since 2021.
The time spent being out of work, education or training is also growing, with one in three young people being unemployed for at least six months. This has a “scarring” effect on future health, income and participation in society.
There are stark regional disparities, and the challenge is even greater for the most marginalised young people.
The UK was one of just eight European countries – out of 32 – where the NEET rate increased between 2015 and 2023.
The data shows:
- rises in mental ill-health
- erosion of quality apprenticeship opportunities
Lessons from the Netherlands
Read more about Lessons from the NetherlandsThe Netherlands leads the OECD with less than 1 in 20 young people NEET. This demonstrates what can be achieved through:
- a coordinated regional approach
- integrated support across education and employment
- a dedicated focus on vocational and technical education
- strong employer partnerships
Recommendations
Achieving the ambitious goal to lead the OECD in youth participation by 2050 requires an evidence-based and integrated long-term national commitment.
Four priorities for immediate attention:
- Act early to identify and support young people at risk of becoming NEET
- Offer an ambitious Youth Guarantee with a wage subsidy scheme built in
- Create more high-quality opportunities for apprenticeships and skills
- Address mental health as a core barrier to participation
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