Why more than one million young people are out of work, education or training

Last week, the number of young people out of work or training hit over a million for the first time in over ten years. 

On the same day the new figures were released, the government published a landmark review by Alan Milburn into why so many young people are NEET (not in employment, education or training). 

Its findings were a damning indictment of over a decade of inaction by the previous government. The TUC submission to the Milburn review showed -  the NEET crisis has been years in the making. Young people do not lack of ambition – most who are NEET want to work. But they are being held back by a lack of entry level roles, regional and local labour market inequalities, the rise of insecure work, and cuts to education, health and social security. Together they have created a perfect storm, making it harder for this generation to get in to work and progress in it. 

What is causing the UK's NEET crisis?

• Weak labour demand for entry level work. Vacancies have fallen sharply, particularly in roles suitable for young people, while unemployment has risen faster for 18–24-year-olds than for older workers.
• Regional and local labour market inequalities. Young people living in areas of high deprivation and lower employment rates are far more likely to be NEET, and the places hit hardest –like Blackpool and Middlesbrough – are communities that have spent decades paying the price of deindustrialisation and neglect.
• Poor quality and insecure work. Young people are far more likely to be trapped in insecure, low-quality work that damages their health and pushes them in and out of employment. 
• Inadequate education and skills pathways. Disruption to education and employment during the pandemic meant many young people are less job ready, alongside a significant decline in apprenticeship start and completion rates.
• Rising ill health. A growing share of NEET young people are disabled, attributed to a growth in mental ill-health. Cuts to mental health and youth services, insecure work and the cost of living are all drivers, as well as the fact that too many disabled people do not get access to reasonable adjustments to help them in and stay in employment.
• Inequalities and discrimination. Disabled young people, young carers, and some ethnic minority groups are more likely to be NEET. Discrimination, inaccessible transport, lack of flexible working and harassment in the workplace are all barriers to accessing quality work for young people with protected characteristics. 

Some have used this moment as a cynical attempt to turn workers’ rights and decent pay into a scapegoat, but the reality is most measures in the Employment Rights Act haven’t even come into force yet, and raising the minimum wage has not harmed employment.

How can we tackle the NEET crisis?

We need real solutions to the deep and long running NEETs crisis.

• Expand the jobs guarantee for young people. Real experience of decent, paid work is the best way to turn the tide on rising rates of worklessness. The Government have made a good start, introducing a jobs guarantee, but it should be bigger, faster and more ambitious 
• Drive up the quality of work. Given the evidence that poor quality jobs can drive economic inactivity, the government should ensure full and rapid implementation of the Employment Rights Act and the government’s Make Work Pay agenda, in particular measures that will support job security.
• Ensure young people’s opportunities are a cross-government priority. Government convening and spending power should be used to create opportunities for young people in areas with the highest NEET rates.
• Reform apprenticeships. Reversing the decline in apprenticeships for young people requires improving quality, expanding provision and ensuring apprentices are financially supported to complete their training. The industrial strategy is a golden opportunity to create sustainable, quality apprenticeships. 
• Reform funding for education. Both further and higher education are facing a financial crisis. The government should work with unions on a sustainable workforce strategy and ensure colleges and universities have the capacity needed to deliver apprenticeships and wider learning opportunities.
• Reform funding for health. Given the high rates of young disabled people who are NEET, fully funded comprehensive rehabilitative services as part of NHS care is a fundamental step in supporting young disabled workers and individuals with ill health to return to and stay in employment. 
• Ensures a supportive social security system. Currently there is no intervention for those who might be able to move towards employment or education with the right support in place. Any reforms should focus on ensuring there are genuine opportunities to move into work or education and a support package for young people to move into them – not on unfairly reducing entitlements. 

Change is possible

One million young people should be a watershed moment, that galvanises the Government to create the quality, paid work and apprenticeship opportunities, alongside sustained investment in skills, education, health and social security that we know will give young people with so much potential the chance to succeed.