Finance
Number of UK young people not in work or education nears 1 million
Published by Global Banking & Finance Review®
Posted on February 26, 2026
3 min readLast updated: February 26, 2026
Quick Summary
Nearly 1m Britons aged 16–24 were NEET in Q4 2025 (957,000; 12.8%), the second-highest in over a decade. Economists cite wage and tax changes and urge wider work placements to ease youth labour strains.
Nearly 1 Million UK Youth Are Out of Work, Education or Training
UK NEET Surge and Labour Market Signals
LONDON, Feb 26 (Reuters) - Nearly 1 million Britons aged 16-24 were not in employment, education or training at the end of last year, the second-highest level in more than a decade, according to official data released on Thursday.
What NEET Means
The rate of young people not in employment, education or training (NEET) is sometimes seen as a better guide to labour market difficulties than the headline youth unemployment rate, which was the highest in 10 years in the last quarter of 2025.
Latest NEET Numbers and Rate
Thursday's data showed that the number of NEETs aged 16-24 rose to 957,000 in the last quarter of 2025 from 946,000 the quarter before - just short of 971,000 in the final quarter of 2024 which was the highest since 2014.
Quarterly and Yearly Comparisons
The latest NEET rate is equivalent 12.8% of the workforce, up from 12.7% in the last quarter but below a 10-year high of 13.2% a year earlier and compares to an unemployment rate of 16.1% for 16-64 year olds.
Minimum Wage and Employer Costs
Economists’ Take on Causes
Earlier this week, Bank of England Chief Economist Huw Pill told a parliament committee that a rise in the minimum wage and employer social security charges had contributed to the difficulty young people face in getting a foothold in the job market.
Academic Poll Findings
This view is shared by many academic economists: 15 out of 19 in a poll by Britain's National Institute of Economic and Social Research and the London School of Economics' Centre for Macroeconomics judged that government policy had a were a "very" or "moderately important" driver of youth unemployment.
Reis on Policy Effects
LSE economics professor Ricardo Reis said "government policy changes are the most likely proximate cause for such large movements in young joblessness", though he added that there was not conclusive evidence, and others pointed to broader economic weakness and artificial intelligence as factors.
Widening Work Placements
Policy Options and Next Steps
Louise Murphy, a senior economist at the Resolution Foundation think tank, said finance minister Rachel Reeves should use a fiscal statement next week to widen eligibility for work placements and to pause plans to narrow the gap between the minimum wage rates for 18-20 year olds and older workers.
(Reporting by David Milliken, editing by Andy Bruce)
Key Takeaways
- •NEETs rose to 957,000 (12.8%) in Oct–Dec 2025, up from 946,000 in Q3, and just below 971,000 in Q4 2024.
- •Youth unemployment reached about 16.1% in late 2025, the highest in a decade.
- •BoE’s Huw Pill linked higher minimum wages and employer NICs to tougher youth hiring conditions.
- •A NIESR/LSE CFM poll found most economists view government policy as an important driver of youth joblessness.
- •Resolution Foundation urged Chancellor Rachel Reeves to widen work-placement eligibility and pause narrowing the 18–20 vs adult wage gap.
Frequently Asked Questions about Number of UK young people not in work or education nears 1 million
1What is the main topic?
The article reports a rise in UK young people aged 16–24 who are not in employment, education or training (NEET), nearing one million in Q4 2025, and explores why this is happening.
2How many young people were NEET and what is the rate?
Official data show 957,000 young people were NEET in Q4 2025, equivalent to a 12.8% NEET rate among 16–24 year olds.
3What policy responses are suggested?
Experts urge widening eligibility for work placements and pausing plans to narrow the wage gap between 18–20 year olds and older workers to support youth employment.
