Britain Slipping Down Global League Table for Youth Employment, Says Report
According to PwC’s annual youth employment index, the UK ranks 27th out of 38 OECD members, marking a drop of four places from the previous year. The country trails behind nations including Mexico, France, and Estonia.
Youth unemployment for ages 16–24 has risen to 15.3% from 14.8% a year earlier, reaching its highest level outside the Covid period since 2015, with long-term youth joblessness at a decade high. Nearly 1 million young people aged 16 to 24 are classified as NEET (not in education, employment, or training).
PwC estimates that the UK loses up to £26 billion annually due to regional disparities in NEET rates. Closing these gaps could add about £13 billion to GDP, while eliminating them entirely could contribute up to £26 billion. London and Scotland stand to benefit the most, where NEET rates are approximately 15% and 16%, respectively.
In response, the Labour Party has proposed a youth guarantee offering six-month paid work placements for eligible 18–21-year-olds on universal credit after 18 months of job-search, alongside 350,000 new training or work opportunities for universal credit claimants, combined with sanctions for non-engagement.
However, business leaders caution that tax increases, a higher minimum wage, and the government’s employment rights bill are driving up the cost of hiring young people and risk pricing them out of work. Bank of England deputy governor Clare Lombardelli also warned that current data points to a challenging outlook for young people in the UK.
The government was approached for comment but did not provide a quoted response.
