One million. That’s the figure driving leaders to take action across multiple sectors following the release of the Young People and Work Interim Report in June 2026.
That equates to around 1 in 8 young people aged 16-24 in the UK right now who are not in education, employment, or training (NEET).
A NEET rate of 13.5% is the highest level we’ve seen since 2014. Equally as concerning is that nearly 60% of young people who are NEET are economically inactive, with 6 in 10 having never had a job (an increase from 4 in 10 back in 2005).
With a higher youth NEET rate than the EU and OECD average, there’s still a way to go in meeting the needs of our young people when it comes to employability in the labour market.
From youth challenge to workforce reality
We know that young people who have experienced being NEET can lose up to an estimated £300,000 in earnings over the course of their lifetime. The impact extends far beyond finances, with psychological and social consequences that can come from feeling ‘othered’ by society and remaining stuck in a cycle of rejection.
It’s not a simple matter of improving motivation or ‘trying harder’. With 84% of NEET young people reporting that they do want a job or training, it’s fundamentally an issue of access and support.
The longer that disengagement continues, the harder it is to reverse – costing the UK economy an estimated £125 billion each year. Mental Health UK warns that without intervention, NEET levels could rise from 1 in 8 to 1 in 6 young people in the next five years, impacting around 1.25 million young people.
As the UK's leading awarding organisation for adult funded enrolments, we see first-hand that employability challenges do not begin or end at a particular age. It’s clear that barriers faced by young people – including confidence, skills gaps, changing job requirements, and negative experiences of education – can reappear and follow individuals into later life.
What is often described as a “youth” issue quickly becomes a wider workforce issue. Without systemic change, these challenges persist.
Barriers to employability
Representing the voices of more than 8,000 young people, Youth Employment UK’s Youth Voice Census highlights a critical disconnect between opportunity and talent, describing it as “the defining challenge of our time.”
One key barrier is the ‘Catch 22’ situation, whereby entry-level roles require experience that many young people simply don’t yet have. Without the right support and ample opportunity to gain that experience, doors remain closed to many when applying for work.
Structural inequalities also play a role, including geographical, financial circumstances, ethnicity, and prior attainment. With around 61% of young people who are NEET being economically inactive, health – particularly mental health – is another key factor.
While these challenges are complex, skills gaps remain a critical and practical area for intervention.
The digital skills gap
Alongside access, equipping people with the ‘right’ skills – those that align with employer needs and real job opportunities – is essential. Digital skills are a clear and growing example of this.
Despite technology being central to modern life, FutureDotNow reports that 59% of the UK workforce cannot complete all essential digital tasks required for work, and that over 20 million working-age adults lack the digital skills needed in today's workplace.
The impact is significant, with the digital skills gap estimated to cost the UK economy £63 billion each year. It also risks widening social inequality, as digital exclusion can limit access not only to employment, but to everyday tasks such as communication and banking.
It's often assumed that young people, who have grown up with technology, will naturally bridge this gap. But we also know that being confident on social media or using digital devices isn't the same as work readiness. Our No One Left Offline report (2025) found that more than 50% of respondents aged 18 and under did not have the essential digital skills required to navigate modern life.
Digital skills require structured development and support, and this is increasingly true as AI becomes embedded in everyday work. Employers expect AI capability to grow in importance, with a focus on adaptability and understanding rather than deep expertise, to become core employability skills – not specialist ones.
Is policy change enough to shift the system?
Recent investment and policy activity – including consultations and funding announcements – show positive intent, but the pace of change can be challenging for providers to navigate. Keeping up with reforms is often described as a job in itself.
This raises an important question: are we addressing root causes or reacting to outcomes?
The ERSA highlighted in May 2026 that for every £1 spent on employment support, £25 is spent on benefits. Does this mean that current approaches are too reactive rather than preventative? Most young people who are NEET say they want to work or train, pointing to a need for better access to opportunities and support.
In response, the Youth Guarantee – launched in 2024 and expanded through 2025/2026 – aims to support all 16–24-year-olds into employment, education or training. Backed by over £1.5 billion, it includes new training and work opportunities, expanded Youth Hubs, additional support through Universal Credit, and a six-month Jobs Guarantee for eligible young people.
Joined up thinking
Employability is not just about finding someone an open vacancy or coaching them in preparation for a job interview; it’s about creating sustainable pathways into and through work.
This requires a joined-up approach, connecting skills development, education, employer needs and progression opportunities. Initiatives like Youth Hubs demonstrate the value of bringing support services, including careers, housing and financial advice, skills and wellbeing support, and employer engagement, under one roof.
Young people face multiple, often overlapping barriers that can be difficult to overcome. Encouragingly, the conversation is shifting – from questioning young people’s choices, to recognising the complexity of these challenges and asking what systems, employers and policymakers can do differently.
The barriers identified in the Milburn Review – including health (particularly mental health), inequality, geography, work experience, and skills gaps – are deeply rooted and unlikely to be solved through a single policy change. However, focusing on prevention and early support is more effective than trying to address issues once they have intensified.
Policy that connects wellbeing, skills, and employability is far more powerful than viewing employment outcomes in isolation. By taking a more joined-up approach, we have a real opportunity to support young people today while building a more confident, skilled and resilient workforce for the future.
Explore our range of preparing for work and employability qualifications to discover how we're equipping individuals to develop their essential skills.
