Why are more young people NEET?

In this blog, Chris Goulden, Deputy CEO, analyses three key factors behind the stubbornly high NEET levels, before setting out what the government needs to do to meaningfully address the challenge.

The NEET challenge 

The latest Office for National Statistics (ONS) figures underline the growing scale of the challenge. Between April and June 2026, the number of young people not in education, employment or training (NEET) remained stubbornly high at nearly one million. More than one in eight 16–24-year-olds are now neither earning nor learning. The problem is also unevenly distributed, with some places and communities far more affected than others. While short-term movements can be volatile, the broader trend is clear and is reflected in other data sources. 

Alan Milburn’s interim report on Young People and Work reinforces both the scale and complexity of the challenge. As Youth Futures argued in response, we need to act decisively and at pace, while significantly raising our level of ambition for young people. 

Why are numbers rising? 

Why are NEET numbers increasing without the kind of recession that typically drives large rises in unemployment? 

The answer is that labour markets can weaken without headline joblessness surging, and young people often feel the impact first. 

Several factors are at play.

1. Hiring has slowed

Across the economy, recruitment has weakened. That matters disproportionately for young people, whose entry into work depends on vacancies becoming available. 

When hiring slows, fewer young people make the transition into employment, even if unemployment does not rise dramatically. Rather than widespread redundancies, the labour market appears increasingly static, with lower recruitment and fewer job moves.  

Work Foundation analysis shows that entry-level vacancies – including roles requiring no experience, apprenticeships, graduate roles and internships – have fallen more sharply than total vacancies in the last year. That particularly disadvantages new entrants, who rely on openings being created to take their first steps into work.

2. The UK’s model leaves little room for error

Historically, the UK has combined relatively high youth employment with comparatively low participation in education among 18–24-year-olds. That model works when employers are recruiting. When recruitment weakens, however, fewer young people are absorbed into work and too few can move into education or training instead. 

At the same time, some of the traditional routes into employment, particularly apprenticeships for younger entrants, have grown less quickly than in other nations. As a result, the system provides less protection when labour market conditions deteriorate.

3. More young people are becoming stuck

The NEET rate depends not only on how many young people enter NEET status, but also on how quickly they leave it. 

Increasingly, the rise is being driven not by unemployment alone but by economic inactivity, often linked to physical and mental health or wider wellbeing challenges. The longer a young person remains inactive, the harder it can be to reconnect with work or learning. 

As more young people spend longer periods outside education and employment, a growing share become less likely to exit quickly, reinforcing the upward trend. Poor-quality or insecure work can compound the problem, with some young people cycling between unstable jobs, unemployment and inactivity. 

These factors reinforce one another. A weaker hiring market makes it harder to take first steps into work. A limited education and training buffer leaves fewer alternatives. Rising inactivity makes disengagement more persistent. And for young people facing additional barriers, including poor health, SEND, care experience, weak local labour markets or limited networks, the risk of becoming stuck outside both work and learning is even greater. 

What needs to happen? 

Addressing this challenge will require more than marginal adjustments. 

We need earlier intervention in schools and colleges, stronger pathways into employment, and many more apprenticeship and other vocational training opportunities. Young people facing the greatest barriers, including those with SEND and care experience, need personalised support that reflects their circumstances. Employment and health support should be better integrated, and we need more effective ways of identifying and engaging so-called ‘hidden’ NEET young people who sit outside many government systems. Trusted adults and sustained one-to-one support will often be critical. 

The issue is not a lack of aspiration among young people. Too often, it is a lack of the right opportunities, support and relationships at the moments they matter most. 

Understanding the drivers behind rising NEET rates matters because it shows that change is possible. If we can create stronger transitions into work and learning, the prize is substantial: better outcomes for young people and significant social and economic gains for the country as a whole.