Youth Jobs Losses Account for Nearly Half of All UK Job Cuts Since June 2024
Since June 2024, the UK has seen a loss of 170,000 payroll jobs, of which 46% (about 78,000 roles) have been among under-25s, averaging roughly 150 job losses per day. Youth unemployment now stands at 15.3%, up from 14.8% a year earlier, marking the highest rate outside of the Covid pandemic period since 2015 and over three times the unemployment rate for those over 16. Under-25 workers constitute around 10% of the UK workforce, with November payroll data indicating 77,000 fewer under-25s employed compared to June 2024, particularly affecting those under 18. Although there was a partial recovery in November with around 37,000 more under-25s employed than in October, the total remains below the level in June.
The number of young people classified as NEET (not in education, employment or training) is expected to exceed 1 million for the first time in a decade, with an official update forthcoming. Long-term youth unemployment is also on the rise, with 137,000 18–24-year-olds unemployed for more than 12 months — the highest figure in ten years.
This worsening youth employment situation has been linked to the government’s £25 billion rise in employers’ National Insurance contributions, which has reportedly slowed hiring, especially in sectors like hospitality and retail. The Bank of England has also warned that this tax increase has dampened recruitment efforts. Critics have urged a reversal of this tax rise, citing its negative impact on hiring among young people.
In response, Alan Milburn has been appointed to lead an independent review addressing rising youth worklessness. Additionally, plans announced by Reeves include funding a 'youth guarantee' that will offer paid work opportunities to eligible Universal Credit claimants after 18 months without earnings or education. Labour has pledged to abolish long-term youth unemployment altogether and to expand Youth Hubs to provide more support to young people.
