Nearly one million young people out of work or education as Neet rate edges higher

"Official figures from the Office for National Statistics (ONS) show that an estimated 957,000 people aged 16 to 24 were classified as Neet between October and December 2025. That represents 12.8 per cent of the age group, a slight rise on the previous quarter and perilously close to the one-million mark last seen in the aftermath of the global financial crisis."

"The ONS said the latest uptick was driven primarily by a rise in the number of young women classified as Neet. At the end of 2025, 12.2 per cent of young women were not in work, education or training, up on the previous quarter. By contrast, the number of young men in the same category fell slightly."

"The UK jobs market remains subdued, with vacancies recently falling to their lowest levels in five years. Youth unemployment has been disproportionately affected by employers cutting entry-level hiring in response to rising wage costs and increased national insurance contributions."

The number of young people classified as Neet (not in education, employment or training) has risen to 957,000, representing 12.8 per cent of those aged 16 to 24 in the final quarter of 2025. This marks a concerning trend approaching the one-million threshold last recorded during the global financial crisis aftermath. The increase is primarily driven by rising numbers of young women in this category, while young men's figures declined slightly. The labour market weakness reflects contracting hiring in hospitality, retail, and graduate schemes. Unemployed Neets increased 12.3 per cent quarter-on-quarter, indicating more young people actively seeking work but unable to secure employment. Employers have reduced entry-level hiring due to rising wage costs and increased national insurance contributions, disproportionately affecting youth employment opportunities.

Read at Business Matters