The UK is losing an estimated £125 billion a year to young people not in education or employment, The Guardian reports.
More than 1 million people in the country fall into the so-called NEET (not in education, employment or training) category. This generation came of age during the 2008 financial crisis and the coronavirus pandemic and now faces rising prices, cuts to public services and a changing job market due to artificial intelligence.
Spending on youth services has fallen by 76%, leading to the closure of youth clubs and a reduction in social worker staff.
According to the Office for National Statistics, the overall unemployment rate in the UK was 5.2% in December 2025, the highest since January 2021. When the Labour Party came to power in July 2024, unemployment was 4.1%. Young people aged 18 to 24 are particularly vulnerable to the job shortage: unemployment in this age group is 14%.