UK youth unemployment falls below 1 million, still high

The number of young people in the UK not in education, employment or training (Neet) fell below one million in the latest quarter, according to the Office for National Statistics (ONS). The estimated 981,000 Neets aged 16-24 between April and June represents a drop of 31,000 from the previous quarter, but remains 30,000 higher than a year ago Source: The Guardian. This means about one in eight young people are Neet, a proportion that remains among the highest in Europe Source: The Guardian.

Causes and concerns

Experts attribute the high Neet numbers to several factors, including employers' reluctance to hire young people, the rise of artificial intelligence in entry-level tasks, and increased mental health issues among youth following the pandemic Source: The Guardian. A report by the Work Foundation found that 36% of employers reduced entry-level jobs for 16-24 year-olds in the last year Source: The Guardian. The TUC's Paul Nowak called the situation "a crisis" Source: The Guardian.

Government response

Work and Pensions Secretary Pat McFadden has described tackling youth unemployment as a "national cause" Source: The Guardian. He visited Boots in Nottingham to meet young people hired under Labour's youth jobs guarantee scheme, which pays wages for six months. McFadden emphasized that "work is part of the answer" to the mental health crisis, saying "It's bad for your mental health to be sitting at home, isolated" Source: The Guardian. He also criticized the universal credit system's "black and white" distinction between fit and unfit for work, calling for reform Source: The Guardian.

What's next

Alan Milburn's review of youth inactivity is expected to publish recommendations in the autumn, with McFadden committing to take them forward Source: BBC. Milburn has warned that without intervention, the Neet number could reach 1.25 million by 2030 Source: The Guardian.