GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Number of UK young people not in work or education drops under 1 million - Finance news and analysis from Global Banking & Finance Review
Finance

Number of UK young people not in work or education drops under 1 million

Published by Global Banking & Finance Review

Posted on August 27, 2026

2 min read

· Last updated: August 27, 2026

Add as preferred source on Google

UK Young People Not in Work or Education Drops Below 1 Million in Q2 2026

Trends and Factors Affecting NEET Rates Among British Youth

Recent NEET Statistics and Trends

LONDON, Aug 27 (Reuters) - The number of British young people not in employment, education or training (NEET) fell below 1 million in the second quarter of 2026 after hitting its highest since 2013 in the first three months of the year, official figures showed on Thursday.

Since the COVID-19 pandemic, the proportion of 16-24 year-olds outside the job market or education has risen to one of the highest in Europe.

The Office for National Statistics counted 981,000 people aged 16-24 as NEET in the April-to-June period, down from 1.011 million in the first quarter and representing 13.0% of the age group, down from 13.5% previously.

Government Response and Initiatives

"These latest figures underline why we are addressing youth inactivity as a priority," work and pensions minister Pat McFadden said, highlighting new work experience placements for the long-term unemployed.

The government has previously indicated it may limit increases to the minimum wage for 18-20 year-olds.

Concerns Over a "Lost Generation"

A report by former minister Alan Milburn warned in May of the risk of a "lost generation" of NEETs who could make up one in six of the age group within five years.

Milburn's report blamed the welfare system for "exacerbating inactivity". But it also highlighted a sharp drop in the number of low- and medium-skilled entry-level jobs — including part-time Saturday jobs for schoolchildren — despite buoyancy in the broader labour market for much of the past decade.

Labour Market Challenges and Employer Perspectives

Thursday's data showed the number of NEETs increased by 30,000 in the past year.

A survey by Lancaster University's Work Foundation earlier this week found almost half of medium and larger firms had fewer vacancies for young people than a year ago, partly due to broader use of artificial intelligence and automation.

The Confederation of British Industry said higher employment taxes had reduced firms' overall willingness to hire, despite exemptions for some younger workers.

Reporting Credits

(Reporting by David MillikenEditing by William Schomberg)

Key Takeaways

  • NEET count dipped below 1 million in April–June 2026, a reduction from early 2026 highs—981,000 young people, or 13.0% of 16–24‑year‑olds (ons.gov.uk)
  • Alan Milburn’s May 2026 interim review warned of a potential rise to 1.25 million NEETs (one‑in‑six) by 2031, citing structural issues like poor health, a fragmented welfare system, and fewer entry‑level jobs (independent.co.uk)
  • Government is deploying £2.5 billion youth and jobs reforms—including council support tools, apprenticeships incentives, and autumn‑2026 expansion of the Jobs Guarantee—to pre‑empt a ‘lost generation’ scenario (gov.uk)

References

Frequently Asked Questions

What does NEET stand for in UK statistics?
NEET refers to young people Not in Employment, Education or Training.
How many young people in the UK were NEET in Q2 2026?
There were 981,000 young people aged 16-24 classified as NEET in Q2 2026.
How did the NEET numbers change compared to the previous quarter?
NEET numbers fell from 1.011 million in Q1 2026 to 981,000 in Q2 2026.
What factors are affecting youth employment in the UK?
Key factors include AI and automation, reduced entry-level jobs, and higher employment taxes.
What percentage of young people in the UK were NEET in Q2 2026?
13.0% of UK young people were NEET in the second quarter of 2026.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category