UK’s Rising NEETs Numbers Raise Economic Concerns

Official data indicates a concerning rise in the number of young people aged 16-24 who are not in education, employment, or training (NEETs), reaching nearly 1 million as of December 2025. This increase, highlighted by the Office for National Statistics (ONS), is fueling anxieties about the long-term health of the UK economy.

Increase in NEETs and Youth Unemployment

The ONS reported 957,000 individuals aged 16-24 were not working in December, a rise from 946,000 between July and September. Analysts at the ONS caution that data may be subject to greater volatility due to smaller sample sizes. Youth unemployment within this age group has exceeded 16%, significantly higher than the general working population’s unemployment rate of just over 5% .

Government and Opposition Responses

Work and Pensions Secretary Pat McFadden acknowledged the high number of NEETs as a “concern” and a “long-term challenge.” He noted the increase began before July 2025 . The Labour government is promoting its youth guarantee program and apprenticeship opportunities for small businesses as solutions.

The Conservative opposition argues that high student loan burdens and the value of university degrees are disincentivizing young people from entering the workforce. Shadow Work Secretary Helen Whately stated that nearly 1 million young people are “completely trapped” due to government tax decisions.

Spring Statement Focus and Economic Forecasts

Chancellor Rachel Reeves is facing pressure to address the issue in the upcoming Spring Statement next week. Despite the government’s intention to focus on revised forecasts from the Office for Budget Responsibility (OBR), economists are urging her to consider exceptions. The Resolution Foundation suggests that NEETs should be an exception to her current strategy .

Economic Context and Potential Solutions

Economists at the Resolution Foundation propose pausing the convergence of the minimum wage with the living wage and expanding Labour’s jobs guarantee. Louise Murphy, a senior economist at the Resolution Foundation, warned that the UK is “perilously close to having a million young people not in education, employment or training for the first time in 13 years” . She emphasized the need for swift action to prevent these trends from becoming entrenched.