A major new report has warned that young people in the UK are trapped in a 'hopeless catch-22' as employers demand experience they cannot obtain in a dire market for starter jobs. Former Health Secretary Alan Milburn, who led the investigation, described the rising number of young people not in education, employment, or training (NEET) as a 'moral crisis'.
NEET Numbers Surpass One Million
The release of Milburn's report coincided with Office for National Statistics data showing that the number of 16- to 24-year-olds classified as NEET exceeded one million in the first quarter of this year. This represents 13.5% of young people in the UK, an increase of 1% from the same period in 2025. According to forecasts in the report, the NEET rate is set to rise above 16% within five years, meaning more than 1.25 million young people could be out of work, education, and training.
Key Drivers: Health and Entry-Level Work Crises
Milburn highlighted two major drivers: a crisis in young people's health and a crisis in entry-level work. Vacancies in hospitality, where many young Brits find their first paying job, have halved in the past four years. Meanwhile, roles that were once relatively straightforward, such as customer service, have grown more demanding. 'The first rung of the career ladder has thinned. For too many young people it is simply out of reach,' Milburn said at a press conference. 'That places them in a hopeless catch-22 position where employers ask for work experience, but opportunities for young people to gain it have either narrowed or have gone.'
The report warns that this situation is likely to worsen as the nascent AI revolution begins to take full effect. Additionally, the proportion of young people saying they are NEET due to a work-limiting health condition has risen by 70%. Milburn noted, 'For the first time in perhaps two centuries, changes in health – especially mental health – are impeding economic growth and causing a contraction in the supply of labour.' He described a vicious cycle: 'Poor health reduces participation; reduced participation worsens health; worsening health makes return to work harder still. This is the vicious cycle that simply isn't being broken.'
Mental Health Crisis Not an 'Excuse'
Milburn rejected the notion that mental health issues are simply an excuse used by young people who do not want to work, stating that distress is 'real, and it is rising'. He also dismissed the idea of telling young people to 'try harder', noting that many are applying for dozens or even hundreds of jobs without hearing back. 'And it is silence that does not just dent confidence, it kills hope,' he added.
UK Worse Than European Peers
Today's report is the first of two, focusing on the 'diagnosis' of what has put the UK in its current situation, which is considerably worse than other top European nations. The second part, focusing on recommendations and possible solutions, will follow later this year.
