Key facts
- A report by the Institute for Public Policy Research (IPPR) indicates a record number of young people in England fear long-term unemployment.
- The study found that younger individuals are less confident about future success and less convinced that hard work is rewarded compared to older generations.
- The number of individuals aged 16-24 not in education, employment, or training (Neets) has surpassed 1 million for the first time in a decade.
- A government spokesperson announced a £2.5 billion youth employment support package aimed at assisting nearly 1 million young people.
- The IPPR suggests that falling confidence among young people could have detrimental economic impacts.
Young people in England are increasingly fearful of long-term unemployment, with record numbers losing faith in their futures, according to a report by the Institute for Public Policy Research (IPPR).
The analysis of survey data, including from the Office for National Statistics, indicates that individuals aged 16 to 21 are less confident about their future success compared to a decade ago. They are also less likely than older generations to believe that hard work will be rewarded.
Just one in four individuals aged 16 to 29 agreed that everyone has a fair chance to succeed based on talent and hard work, a stark contrast to 35% of those aged 50 to 69 and over 40% of those over 70.
Policymakers are increasingly concerned about the challenges facing young people, with the number of individuals aged 16 to 24 not in education, employment, or training (Neets) recently exceeding 1 million for the first time in a decade. Alan Milburn, a former Labour minister, is conducting a government review into this trend and warned of a potential 'lost generation' if action is not taken.
The IPPR argues that declining confidence in future opportunities can negatively impact the economy by discouraging young people from studying, working hard, and saving. Ellie Harris, IPPR’s head of children and young people, stated that the promise of hard work leading to security and opportunity is no longer credible for many.
Data from the Understanding Society survey shows a significant increase in pessimism: the proportion of 16- to 21-year-olds rating their chances of future success at 20% or less tripled to 6% between 2015-17 and 2023-25. Similarly, the share believing they had an 80%-plus chance of suffering long-term unemployment more than tripled to 7% over the same period.
The IPPR identifies several contributing factors, including the intensifying effects of austerity, the influence of personalized algorithms in the online information environment, and a decline in young people's mental health. Rising youth unemployment and high housing costs are also cited as reasonable conclusions drawn from current conditions.
Separately, Keir Starmer is expected to announce restrictions on social media for under-16s due to concerns about mental health impacts. A government spokesperson acknowledged the challenges and highlighted a £2.5 billion youth employment support package designed to help nearly 1 million young people with earning or learning opportunities, alongside the expansion of youth hubs across Great Britain.
The IPPR's research is part of the State of a Generation project, sponsored by the Youth Futures Foundation, Big Change, and McDonald's.