Britain is facing a growing youth unemployment challenge, with new figures showing the country now has a higher proportion of young people out of work or education than Spain and Greece.
Analysis by the Resolution Foundation found that more than 900,000 people aged 18 to 24 were not in employment, education or training last year. This represents around 15 per cent of that age group and the highest level since 2005.
The figures place the UK among the worst-performing comparable European economies. Of 22 countries analysed, only Italy and Lithuania recorded higher rates, while nations such as Germany, Denmark and the Netherlands reported significantly lower levels.
Spain’s rate has fallen below 10 per cent and Greece’s is just under 15 per cent, both now lower than the UK. The Netherlands has the lowest rate overall, at under 5 per cent.
Researchers say the increase reflects a combination of factors, including a weaker labour market, rising levels of ill health among young people, particularly mental health conditions, and longstanding gaps in vocational education and training.
The report found that 21 per cent of young people now report a long-term health condition that limits their activity, up from 14 per cent in 2019. It also highlighted a rise in the number of young people who are economically inactive rather than actively seeking work.
In addition, the number of young benefit claimants not required to take part in work-related activity has increased significantly, rising from around 160,000 to 300,000.
Julia Diniz, senior economist at the Resolution Foundation, said:
“Relative to the UK, other countries are a lot better in vocational education. In the Netherlands, we have found that the perception of vocational education is a lot more accepted. It’s probably the policy area that could most have an effect on Neet rates.”
The findings present a challenge for Chancellor Rachel Reeves, as the Government looks to improve opportunities for young people.
Ministers have announced a £2.5 billion “youth guarantee” scheme aimed at expanding access to jobs, training and education, alongside plans to offer employers £3,000 to hire under-25s who have been on Universal Credit for more than six months.
A Department for Work and Pensions spokesman said:
“Too many young people are locked out of opportunity, work and education, and we are determined to change that by shifting from a welfare state to a working state.
“Backed by £2.5bn, our Youth Guarantee will deliver a million opportunities across the country, ensuring every young person has the chance to earn or learn, whilst Alan Milburn’s review is investigating the barriers stopping young people from getting into work.”
However, analysts say reversing the trend will require sustained action across education, health and employment systems, rather than short-term measures.
Separate data shows unemployment among 16 to 24-year-olds rose to 15.3 per cent in the three months to September, slightly above the EU average. The overall UK unemployment rate also increased to 5.2 per cent at the end of last year, up from 4.4 per cent a year earlier.
