Young people not in education or employment exceeds one million

The number of young people aged 16 to 24 who are not in education, employment or training (NEET) has risen sharply over the past two years and is set to exceed one million for the first time since 2012, according to new analysis from the Resolution Foundation.

The think tank’s False Starts report, which was published today (21 October) with support from the Health Foundation, found that the NEET population has grown by 195,000 since 2023 to reach 940,000. The increase is being driven largely by a rise in young people inactive due to disability or ill-health, rather than by unemployment alone.

The study confirmed trends seen in the Labour Force Survey, showing that over one in four young people who are NEET are now inactive due to long-term sickness or disability – 29% of men and 26% of women – more than double the share recorded in 2005.

It also found that the demographic profile of NEETs has shifted in recent years. In 2005, half of young women in this group were out of work due to caring responsibilities, compared with one in five today. Unemployment is now the main reason for being NEET among both men and women, affecting 47% and 32% respectively.

The report noted that young men are now marginally more likely to be NEET (13%) than young women (12%), reversing the pattern seen two decades ago. It warned that those who are NEET are becoming increasingly detached from the labour market, with 60% having never worked, compared with 42% in 2005.

Common assumptions about NEETs were also challenged. The Foundation said that nearly half (44%) of NEETs do not claim benefits, and that the group is dominated by those with lower qualifications. Young adults aged 22 to 24 with only GCSE-level education or below are three times more likely to be NEET than graduates.

The findings suggest that raising the compulsory participation age in education in 2013 has failed to reduce the number of 16- to 17-year-olds who are NEET.

Louise Murphy, senior economist at the Resolution Foundation, said: “The number of young people who are neither earning nor learning has risen sharply in recent years and is now nearing one million. The biggest factor driving this increase is workless young people reporting a disability or ill-health. This has doubled over the past twenty years and now affects over one-in-four young people not in education, employment or training.

“The government should redouble efforts to reduce the number of NEETs by making it easier for young people to return to education if they drop out, or to get their first experience of work. Otherwise, we risk a cohort of young people slipping through the cracks into a lifetime of lower living standards.”

The Foundation urged ministers to create a national “front door” service to help young people re-engage with education and training, expand the Youth Guarantee to cover 22- to 24-year-olds, and improve the quality of Work Capability Assessments for those on health-related benefits.

It also warned that the government should proceed cautiously with plans to abolish youth rates of the minimum wage, arguing that higher rates could make it harder for young people to enter work in the current economic climate.