#generational employment gap

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Society

One Million NEETs and Counting — Jobs Are Disappearing, So Why Does the UK Keep Telling Young People to Get More Training?

The UK's NEET count reached 1,012,000 in Q1 2026, breaking the one-million threshold for the first time since 2013, and the evidence points overwhelmingly to structural demand collapse in entry-level employment rather than any deficiency in young people's work ethic or qualifications. Since 2005, roughly 1.6 million low- and medium-skill jobs have disappeared from the UK economy, and from mid-2024 to early 2026, employment among workers under 35 contracted by approximately 220,000 while employment among workers over 35 grew by 110,000 — a generational divergence that supply-side training programmes are constitutionally incapable of addressing. According to the Milburn independent review, the cumulative annual cost to the country of having nearly one million NEET young people stands at £125 billion — encompassing lost economic output, reduced tax revenues, and increased welfare and healthcare expenditure — a burden that exceeds the entire UK education budget and threatens the long-term viability of the welfare state. Resolution Foundation's analysis finds that demand-side weakness explains just over half of the NEET increase since 2019, yet successive governments have persisted with training-focused supply-side prescriptions, perpetuating a fundamental mismatch between the real cause and the policy response for over a decade. Globally, the ILO reports 262 million young people aged 15–24 are in NEET status as of 2025, and a McKinsey survey found 51% of firms have already cut entry-level hiring because of generative AI, marking this crisis not as a uniquely British failure but as a structural signal that labour markets worldwide are systematically eliminating the first rung of the career ladder.

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