The number of 16- to 24-year-olds in the UK who are not in education, employment or training (Neets) has surged to nearly 1 million, marking the highest level in over a decade, according to a new report. This places Britain with the third-highest rate of youth disengagement among Europe's wealthiest nations, trailing only Italy and Lithuania.
Resolution Foundation Highlights Crisis
The Resolution Foundation thinktank has warned that the UK faces a "crisis" in youth employment, attributing the rise to a "quartet of causes": increasing 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 without work or study.
Among 22 EU members of the OECD analyzed, only Italy and Lithuania have higher rates. While some non-EU European countries like Turkey and Romania also have higher rates, Britain's rate exceeds that of Germany, Denmark, and is more than three times the Netherlands' rate.
Government Response and Criticism
The report comes as former Labour health secretary Alan Milburn conducts a government-commissioned review into rising youth unemployment, with initial findings expected next month. Meanwhile, ministers face criticism from business leaders over increased employment costs, including Chancellor Rachel Reeves's £25bn rise in employer national insurance contributions, minimum wage increases, and new workplace rights.
The Resolution Foundation noted that a weaker jobs market accounts for just over half of the rise since 2019, but youth unemployment is not unusually high compared to past downturns, suggesting other factors at play. The remaining increase is driven by rising ill-health, particularly mental health issues, and a benefits system that lacks requirements or support for young people to engage with work.
Since 2019, the number of 18- to 24-year-old benefit recipients with no work-related requirements has nearly doubled from 160,000 to 300,000, contrasting sharply with countries like the Netherlands that offer more job support and maintain lower Neet rates.
Call for Reform
Lindsay Judge, research director at the Resolution Foundation, stated: "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."
