Youth Unemployment in the UK

The youth unemployment landscape in the UK remains a growing problem for employers, educators, policy makers and young people.

• Youth unemployment has been an escalating problem in the UK since 2005, with the most recent rises directly attributable to health issues or other responsibilities such as education or caring
• In the last 4 years, youth employment has become more complex than ever, with the impact of the pandemic, disruption to education and rising cost of living
• Being unemployed while young is linked to long-term reductions in wages and increased chances of subsequent periods of unemployment, also known as long-term scarring
• High levels of youth unemployment and economic inactivity have long-term economic and social costs. Learning and Work Institute calculations estimate the economic and fiscal cost of high youth unemployment will be £31 billion from 2021-2025.
• In the Youth Voice Census 2023, young people stated their biggest barriers to employment are lack of work experience and skills, and mental health and anxiety.

Current UK unemployment rates

According to the latest ONS labour market overview, the current unemployment rate for all ages in the UK is 4.4%.

The current youth unemployment rate for 16-24 year olds is 14.8%.

Of the 872,000 16-24 year olds not in full time education or employment (NEET) in August 2024, 540,000 are economically inactive and 332,000 are unemployed.

What causes youth unemployment?

Youth unemployment has been growing since 2005, so the recession and economy bear only some of the blame for high youth unemployment levels in the UK. Causes of youth unemployment include:

• A lack of quality jobs locally
• A lack in skills needed for work, with employers choosing more experienced candidates
• Gaps between education and employment
• A lack of quality vocational pathways
• A rise in retirement age due to employment legislation, preventing the need to fill these roles with new employees
• A lack of appropriate qualifications for jobs, impacted by a lack of accurate and engaging careers information
• Employers incorrect perceptions of young people during recruitment

Why is tackling youth unemployment important?

Experiencing unemployment in youth can lead to mental health issues and emotional problems, and reduce a person’s life-long earning/career potential. It creates further inequalities, particularly between communities and the financial costs of supporting unemployed people.

Applicants with little to no work experience or without the required qualifications will cost businesses and the prosperity of the UK. To compete in the ever changing world economy we need to have a bright, educated and skilled workforce.

With nearly 1 million young people unemployed, approximately 1 in 5 young people, it is likely that we will all know someone who will be affected by this problem, not least those still in education yet to try to gain employment.

What are the solutions to youth unemployment?

There are thousands of brilliant youth engagement activities and initiatives happening across the UK. 1 in 4 employers are already engaged in these youth activities, from talking in schools through to employing apprentices and graduates. However, there is more to be done.

To reduce youth unemployment, we need to:

• Increase support for employers, which Youth Employment UK strive to provide through its membership
• Reduce employment legislation that creates barriers for employers creating opportunities
• Help employers to recognise the value of skills and behaviours, not just qualifications
• Ensure education prioritises employability skills and careers learning for young people
• Improve the quality and relevance of vocational pathways
• Ensure Careers Education, Information and Guidance (CEIAG) is aligned with the needs of the economy and local labour market information
• Help young people to value work of all entry levels
• Create a welfare system that supports young people to find employment or training opportunities
• Improve the coordination of all youth engagement activities so that young people will benefit from collaboration/improved signposting

Youth unemployment reports and research

Further reports and research documents around youth unemployment:

• Youth Voice Census annual reports
• APPG for Youth Employment reports
• Pathways For All: Commission on Post-16 Education and Training
• The recent evolution of apprenticeships
• Class of Covid report 2022

If you would like to talk to our team, please email info@youthemployment.org.uk