One in eight young people still out of work or education ahead of major review

Just under one million young people in the United Kingdom are neither in education, employment, nor training, a group known as not in education, employment, or training (Neet), according to data released ahead of a major report addressing a lost generation. The Office for National Statistics (ONS) reported that 981,000 people aged 16 to 24 were Neet between April and June, representing approximately one in eight individuals in this age range.

The final portion of a comprehensive report by former minister Alan Milburn is anticipated to propose recommendations for addressing this issue in the coming weeks.

Work and Pensions Secretary Pat McFadden indicated that ministers would implement these recommendations. Competition for degree apprenticeships has quadrupled as university costs rise. The latest data indicates a decrease in the number of Neet individuals compared to the first three months of the year, when the figure surpassed one million, or 13.5% of the population aged 16 to 24. However, the number has increased by 3% compared to the same period last year, when it was 951,000 young people.

The estimates are derived from a sample of households. The ONS notes that examining a smaller subset, such as Neets, results in greater variability, which can explain small fluctuations from quarter to quarter. This suggests that focusing on short-term changes may not provide a comprehensive understanding of the situation. Asia Mason, a 22-year-old from London, faced a lengthy job search after leaving college with a health and social care qualification.

Despite applying for over 30 positions, she was consistently told she lacked experience. Mason ultimately found employment in the NHS after enrolling in a social care program run by The King's Trust charity, which provided her with practical experience and confidence.

McFadden expressed optimism about the UK labour market's condition but acknowledged a persistent challenge for young individuals. He eagerly anticipated the Milburn report's proposals, which could include legislation if necessary. McFadden announced that the government plans to support 90,000 young people through the Jobs Guarantee scheme over the next three years, offering 25 hours of paid work weekly for six months.

Additionally, the government intends to provide 300,000 more work experience placements and 50,000 additional youth apprenticeship commencements. The Labour government has also introduced £3,000 hiring incentives for employers who hire young individuals who have been unemployed for six months. However, the shadow work and pensions secretary, Helen Whately, criticized the government's policies, asserting that Labour had diminished job opportunities for young people through increased taxes, such as employer National Insurance contributions.

The Liberal Democrats, led by Munira Wilson, highlighted the issue as a "generational betrayal" and called for the government to make apprenticeships more appealing by boosting the number of degree apprenticeships and reversing Labour's detrimental job tax.

The rise in the Neet rate between April and June compared to the same time last year was primarily attributable to an increase among men, with an additional 25,000 men estimated to be Neet, as opposed to 4,000 more young women. In May, the first part of Milburn's report, commissioned by the government, identified complex reasons for the rise in Neet rates among men, including health concerns, the disappearance of traditional employment routes, and a widening educational achievement gap.

The report emphasized that the Neet problem is rooted in social disadvantage and pointed out higher rates among specific groups, such as young people with special educational needs or disabilities (SEND). Milburn warned that without intervention, one in six young people could remain unemployed within five years, stating: "We are at risk of a lost generation."