The number of 16- to 24-year-olds in the UK who are not in education, employment or training (NEET) has surged to nearly 1 million, marking the highest level in over a decade, according to a new report from the Resolution Foundation. This alarming trend places Britain as having the third-highest rate of young adults not in work or study among Europe's wealthiest nations.
Rising Ill-Health and Failing Support Systems
The thinktank attributes what it calls a 'crisis' in youth employment to a 'quartet of causes': a rise in ill-health among young people, weak vocational education, a hands-off benefits system, and a deteriorating jobs market. The NEET rate for 18- to 24-year-olds has jumped from 13% in 2019 to 15% in 2025, leaving 900,000 young people disconnected from work or education.
Only Italy and Lithuania have higher rates among 22 EU members of the OECD analysed. While countries like Turkey and Romania have higher rates, Britain's rate exceeds that of Germany, Denmark, and is more than three times that of the Netherlands.
Government Response and Criticism
The report comes as former Labour health secretary Alan Milburn explores options to tackle youth unemployment in a government-commissioned review. Meanwhile, ministers face criticism from business leaders over rising employment costs, including chancellor Rachel Reeves's £25bn increase in employer national insurance contributions, minimum wage hikes, and new workplace rights.
The Resolution Foundation notes that a weaker jobs market accounts for just over half of the rise in NEET rates since 2019, but youth unemployment is not unusually high compared to previous downturns, suggesting other factors are at play.
Benefits System Under Scrutiny
The thinktank highlights a sharp increase in 18- to 24-year-old benefit recipients with no work-related requirements, from 160,000 to 300,000 since 2019. This contrasts with countries with lower NEET rates, where claimants receive more job support. Lindsay Judge, research director at the Resolution Foundation, said: 'Fixing Britain's Neet crisis starts with investment in youth mental health support and vocational education, and a serious rethink of how young people interact with the benefit system.'
A government spokesperson responded: 'Too many young people are locked out of opportunity, work and education – and we are determined to change that. Backed by £2.5bn, our youth guarantee will deliver a million opportunities across the country, whilst Alan Milburn's review is investigating the barriers stopping young people from getting into work.'
