Challenges and Responses to Youth Unemployment and Education Gaps in 2025
Between July and September 2025, 946,000 young people aged 16-24 in the UK were neither working, in education, nor training, constituting more than one in ten of this age group. Young men are disproportionately affected by this issue, particularly in the North East and East of England. Over half of these young people have a health condition, with about 20% facing mental health challenges. Various factors drive this situation, including rising education costs, a stagnating economy, aftereffects of the pandemic, and increased employer costs due to tax changes and minimum wage hikes. Additionally, 16-24-year-olds are nearly six times more likely to be on zero-hours contracts compared to other demographic groups.
Polling conducted in autumn by More in Common reveals that among young people without degrees, the Reform party is most popular among young men, while the Greens top preferences for young women. Labour maintains around 30% support among those under 30. Policy initiatives addressing these challenges include a Youth Guarantee promising paid employment following 18 months of unemployment or non-participation in education or training. Alan Milburn is set to publish a review on the matter next year. Meanwhile, Liz Kendall’s right-to-try policy exists, and Pat McFadden plans to disclose more details soon.
Health Secretary Wes Streeting advocates for a formal review into potential over-diagnosis of mental health issues that may impede young people’s employment prospects. Mental health concerns are widely regarded as a barrier to work. Ministers acknowledge the severity of the problem, debating whether current welfare policies are sufficiently radical. While some view policy reforms on youth unemployment as a political risk, there is also recognition of the opportunity for those willing to address this pressing issue comprehensively.
