A major review has issued a stark warning: one in six young people will find themselves outside of education, employment, or training in just five years unless urgent measures are taken. This alarming prediction comes from former minister Alan Milburn, who argues that our current education, health, and welfare systems are “no longer fit for purpose” in preparing young folks for the challenges of adult life. “We are at risk of a lost generation,” he emphasized, pointing out that the number of 16 to 24-year-olds who are out of work, education, or training could soar to a staggering 1.25 million by 2031.
Milburn is set to address the issue, stating that the “first rung of the career ladder has thinned,” making it unreachable for too many young people. He describes a frustrating catch-22 situation where employers demand work experience, yet the avenues for young people to gain that experience have dwindled or disappeared.
The concern over youth unemployment is palpable. The latest figures reveal an unemployment rate of 16.2% for those aged 16 to 24, marking the highest rate since 2014 and more than three times the general unemployment rate of 5%. Milburn’s investigation into why so many young people fall under the “NEET” (Not in Education, Employment, or Training) category has unveiled some shocking statistics. From October to December 2025, there were approximately 957,000 young people classified as NEET, which amounts to one in eight individuals in that age group. Alarmingly, more than half of these young people were not actively seeking employment.
If immediate action isn’t taken, this number could balloon to 1.25 million, translating to one in six young people without a clear path forward. Work and Pensions Secretary Pat McFadden has expressed his commitment to addressing this pressing issue, noting that he commissioned the report to prevent a generation from falling into unemployment. He highlighted the government’s initiatives, including financial incentives for companies to hire young talent and efforts to create more apprenticeship opportunities.
McFadden also mentioned a focus on early intervention strategies, such as improving support for special educational needs and removing the two-child cap on benefits. However, he acknowledged, “But we know there is more to do.” Milburn’s findings have been widely discussed, especially his claim that the government spends 25 times more on benefits for young people than on helping them transition into work.
Contrary to the narrative that young people are apathetic about work, Milburn’s report reveals that a significant 84% of surveyed NEETs expressed a desire for jobs or training, emphasizing that the youth unemployment crisis is not their fault but rather a failure of an outdated system. “This is not a failure of young people. It is a failure of a system stuck in the past,” he is expected to assert in his upcoming speech.
Let’s put a face to these statistics. For instance, Zaynah, a 24-year-old, has been grappling with health issues and hasn’t been able to find work since finishing college. Despite applying for more than 200 jobs in the past year, she hasn’t received a single response. “Getting a job is very hard because with my issues, I haven’t got much experience, I’ve never worked before,” she lamented. To combat this, she’s considering volunteering to bolster her CV.
Then there’s Luke, a 23-year-old who graduated from the prestigious Central St Martin’s University with a degree in product design. Despite his qualifications, he’s found job hunting to be an uphill battle. Having applied for over 400 positions, he’s had only one interview for a cleaning role, which he didn’t land. “It’s humiliating,” he shared. “You think, ‘Okay, I’ve got all the knowledge, I’ve got the skills, all I’m waiting for is a job to put it in practice.’ It makes you depressed, especially the amount of rejections.” He’s now relying on benefits to get by.
On a more positive note, we have Rocky, who was out of work for a year before joining Nando’s as a waiter. Fast forward three years, and he’s now an assistant manager. “I’m 23 years old and I’m a manager at Nando’s,” he beams. “I feel happy with myself. I can look back and tell my doubters that I made it.” Rocky attributes his success to the mentoring he received from a manager at Nando’s and the ongoing support from the youth charity Spear.
The review reveals a troubling statistic: in the 2024/25 period, for every £1 spent on employment support for young people, around £25 was allocated for benefits. Furthermore, it noted that the number of low- and medium-skilled jobs in the UK has dropped by 1.6 million over the past two decades, while higher-skilled positions have surged by 6.3 million.
The high street and hospitality sectors, typically the first stop for young people’s work experience, have seen a significant decline in job vacancies, halving in the past four years. The boss of Next, Lord Simon Wolfson, noted that just two years ago, there were about 10 applications for every shop vacancy; now that number has shot up to 19. Rain Newton-Smith, the chief executive of the Confederation of British Industry, stated that the report highlights “a tragic waste of potential” and identifies key issues that need addressing.
Some employers argue that hiring young people has become increasingly challenging due to higher minimum wages and increased taxes, including employer National Insurance contributions. The government has defended its tax hikes on businesses and the rise in the national minimum wage.
As the political landscape unfolds, Prime Minister Sir Keir Starmer recently reversed proposed welfare spending reforms aimed at saving £5 billion a year by 2030, which faced backlash from his own Labour MPs. While this review doesn’t offer immediate solutions, those will be presented in a future report.
The Conservative Party claims Labour is too wrapped up in internal leadership turmoil to tackle the “generational crisis” highlighted by Milburn. Shadow Work and Pensions Secretary Helen Whately criticized Labour’s policies, arguing that decisions like the jobs tax and limiting apprenticeship funding have only made it harder for young people to step into the workforce.
“Every policy choice Labour has made… has made it harder for a young person to take their first step into work,” she stated. With calls for reforming the welfare system to address the high numbers of young people not engaged in work or education, the spotlight remains on Alan Milburn’s findings.
As we look at the education system, John Boumphrey pointed out it “isn’t necessarily producing young people who are ready for work.” A recruiter mentioned that each graduate role now attracts about 140 applications, making the competition fierce.
And while the UK faces its own challenges, globally, a staggering three in four people in Afghanistan cannot meet their basic needs today. Meanwhile, the number of job vacancies in the UK has plummeted to its lowest level in five years, as the impacts of the Iran war begin to ripple through businesses.
Kaynak: Orijinal Haber
