Neets dip below one million as Labour blamed for youth unemployment

The number of young people not in employment, education, or training (Neets) has fallen marginally below the one million mark, according to official figures released by the UK's Office for National Statistics (ONS). As of the three months ending in June 2026, the estimated count of individuals aged 16 to 24 out of work stood at approximately 981,000, down from a previous figure of 1,012,000 between January and March.

This decline in youth unemployment has raised alarm among policymakers and economists due to the perceived unhealthy state of the jobs market. The ONS has previously warned of a five-year low in vacancy levels and highlighted the significant economic costs of youth unemployment, with Alan Milburn, the Youth Unemployment Tsar, stating that it costs the UK economy around £125bn annually.

Prime Minister Andy Burnham has prioritized tackling the Neet crisis, pledging to provide companies with incentives to create apprenticeships and hire younger workers. The Labour government has expanded its 'Youth Jobs Guarantee' programme, offering companies up to £2,000 to employ young workers and guaranteeing six months of paid work for those receiving Universal Credit.

The government plans to extend this scheme to areas with high youth unemployment rates, such as Essex, Greater Manchester, and Birmingham. Work and Pensions Secretary Pat McFadden emphasized the government's determination to address the youth unemployment crisis, stating that it has been "years in the making." He added that the Jobs Guarantee is already supporting those most in need, with the first young people from the scheme now in work, and the broader £2.5bn investment is expected to create nearly a million opportunities for earning or learning.

ONS data on the youth unemployment crisis has coincided with a surge in visa applications by migrants, with the Home Office reporting about 235,000 work visas and 383,000 study visas issued over the past year. Reform UK officials have argued that high youth unemployment is linked to immigration levels, proposing to make it cheaper for employers to hire British workers rather than immigrants.

The opposition party has criticized the tax burden imposed on employers, which they claim hinders their ability to hire young people. Liberal Democrat deputy leader Helen Whately accused Labour of destroying job opportunities for young people through their "jobs tax and employment red tape," attributing the current youth unemployment levels to over a decade of stagnation and nearly one million young individuals disengaged from education, employment, or training.