Youth Under-25 Job Losses Account for Nearly Half of All UK Job Cuts Since June 2024
Since June 2024, 46% of the 170,000 UK jobs lost have been among those under 25, equating to more than 150 job losses per day. November payroll data shows a decline of 77,000 under-25s on company payrolls since June, with most losses occurring among under-18s. Although there was a 37,000 increase in November compared to October, figures remain below those of June 2024.
Youth unemployment has reached 15.3%, the highest rate outside the Covid-19 period since 2015, and is more than three times the unemployment rate for those over 16. Long-term unemployment for the 18–24 age group has reached 137,000, the highest in a decade. Furthermore, the number of young people not in education, employment, or training (NEETs) is projected to exceed 1 million for the first time in ten years.
Critics attribute some of the decline in hiring to Labour's policy, which includes a £25 billion increase in employers' national insurance contributions. This tax rise is said to have dampened hiring, especially in hospitality and retail sectors, with the Bank of England warning about its effect on recruitment.
In response to the crisis, David Blunkett has warned of a "lost generation" and called for a revival of a New Deal-style program aimed at youth employment. Alan Milburn has been appointed to lead an independent review into rising youth worklessness. Additionally, Prime Minister Reeves is expected to introduce a "youth guarantee" in the upcoming budget, aiming to offer guaranteed paid work for eligible young people on universal credit for up to 18 months.
Ben Harrison from the Work Foundation stressed the need for more investment and broader support for 18–24-year-olds to make a tangible difference before the next election.
