Key facts
- UK youth unemployment (Neet figures for 16-24 year olds) fell to 981,000 in April-June.
- This is a decrease from 1,012,000 in the previous quarter.
- The annual increase in Neets was 30,000, primarily affecting young men.
- Despite the quarterly fall, the Neet rate remains at 13%, considered high in Europe.
- A significant percentage of employers have reduced entry-level job availability.
The number of young people in the UK not in education, employment, or training (Neet) has fallen below one million for the first time in the latest reporting period, according to the Office for National Statistics. Between April and June, there were an estimated 981,000 Neets, a decrease from 1,012,000 in the preceding three months.
This quarterly decline offers a potential boost to the government's efforts to address rising economic inactivity among 16 to 24-year-olds. However, on an annual basis, the Neet figure is 30,000 higher than a year ago. The proportion of young people outside of work, education, or training remains at 13%, which is noted as being among the highest rates in Europe.
Analysis indicates that employers are hesitant to hire young individuals, despite economic expansion and robust company profits. Contributing factors cited by experts include the increasing use of artificial intelligence for tasks traditionally performed by entry-level staff and a rise in mental health issues among young people, exacerbated by pandemic-related isolation and disruptions to education.
A recent report by the Work Foundation found that over a third of employers (36%) have reduced the availability of entry-level positions for individuals aged 16-24 in the past year. The quarterly drop of 30,000 Neets is expected to be welcomed by Work and Pensions Minister Pat McFadden, who has emphasized tackling youth unemployment as a "national cause."
The government has tasked former health minister Alan Milburn with conducting a comprehensive review of education, training, and employment services for young people, with recommendations anticipated in the autumn. The ONS noted that the annual increase of 30,000 Neets was predominantly among young men, with an increase of 25,000, and a smaller increase of 4,000 among young women. Of the total Neet population, 530,000 were men and 451,000 were women.
Paul Nowak, the TUC General Secretary, described the situation where nearly one million young people are out of work as a "crisis." He stressed the need for "good quality employment support, more good training places and a strong growing economy with more vacancies."