High Youth Inactivity Rates and Challenges in the UK Labour Market
Between July and September 2025, approximately 946,000 16-24-year-olds in the UK were not engaged in work or study, representing over 10% of this age group. This inactivity is notably higher among young men and is more pronounced in the North East and East of England. More than half of those not in education, employment, or training (NEETs) have a health condition, with about one in five experiencing mental health issues.
Several factors contribute to this economic inactivity, including rising education costs, a stagnant economy, the ongoing effects of the pandemic, and increased hiring expenses due to tax changes and the minimum wage. Young people aged 16-24 are also nearly six times more likely than other groups to be employed on zero-hours contracts.
Polling by More in Common reveals political preferences among the youth: the Green Party is most popular with young women, while Greens and Reform tie at 20% among young men. Labour leads with 30% support from under-30s, and Reform is the leading choice among young men without degrees.
In response to these challenges, the government plans to introduce a Youth Guarantee, promising paid work to young people not in employment or education for 18 months, with details to be announced by Pat McFadden. Additionally, Alan Milburn will publish a review next year to examine the realities of youth unemployment.
A cabinet minister has acknowledged the tough circumstances facing young people and the centrality of unemployment as an issue across generations, though concerns remain that government efforts may be insufficient. Wes Streeting has called for a formal review to determine whether mental health problems among youth are being over-diagnosed, given the rising numbers claiming health-related inactivity.
