The number of young people in the UK who are neither working nor in education or training fell below one million in the second quarter of 2026, official figures showed on Thursday,
offering some relief after youth inactivity reached its highest level in more than a decade earlier this year.
The Office for National Statistics (ONS) estimated that 981,000 people aged between 16 and 24 were classified as NEET — not in employment, education or training — between April and June. That was down from 1.011 million in the first quarter, with the proportion of the age group affected falling from 13.5% to 13.0%.
Despite the quarterly improvement, youth inactivity remains a significant concern for policymakers. Since the coronavirus pandemic, the share of young Britons outside both employment and education has risen sharply, leaving the UK among the European countries with comparatively high levels of youth disengagement.
Work and Pensions Secretary Pat McFadden said the figures reinforced the government's focus on tackling economic inactivity among younger people.
"These latest figures underline why we are addressing youth inactivity as a priority," McFadden said, pointing to new work-experience opportunities aimed at people who have been out of work for extended periods.
The government has also considered measures to make it easier for employers to recruit younger workers, including potentially restraining future increases in the minimum wage for those aged 18 to 20.
The issue has become increasingly politically sensitive as concerns grow that a generation of young people could become detached from the labour market for prolonged periods.
A review led by former minister Alan Milburn, published in May, warned that the UK could face a "lost generation" of young people who are NEET. It projected that their share could rise to around one in six 16-to-24-year-olds within five years without significant intervention.
Milburn's report criticised the welfare system, arguing that it could contribute to prolonged inactivity. But it also identified a broader structural problem: a substantial decline in the availability of entry-level jobs for young people, particularly positions requiring low or medium levels of skills.
Traditional opportunities such as part-time and weekend work for school and college students have become less common, even during periods when the wider labour market was relatively strong.
Thursday's figures also showed that the number of NEET young people was still 30,000 higher than a year earlier, suggesting that the latest quarterly decline does not yet represent a decisive reversal of the longer-term trend.
The challenge is being compounded by changes in the way businesses recruit. Research from Lancaster University's Work Foundation, published earlier this week, found that almost half of medium-sized and large companies reported having fewer job opportunities for young people than they did a year ago.
The study pointed to the growing adoption of artificial intelligence and automation as one factor reshaping entry-level employment and reducing the number of roles traditionally used by young workers to gain their first experience.
Business groups have also warned that higher employment-related taxes are making companies more cautious about hiring. The Confederation of British Industry said increased costs had weakened employers' willingness to take on staff, despite measures providing exemptions for some younger workers.
The latest figures therefore present a mixed picture: the number of NEETs has fallen significantly from the first quarter's peak, but the total remains above last year's level and the underlying availability of entry-level jobs continues to raise concerns about young people's prospects in the UK labour market. Photo by Alexis Brown alexisrbrown, Wikimedia commons.
