Youth unemployment in the United Kingdom

Main article: Unemployment in the United Kingdom

Youth unemployment in the United Kingdom is the level of unemployment among young people, typically defined as those aged 16–24. A related concept is graduate unemployment which is the level of unemployment among university graduates. Statistics for March to May 2025 show that there are 628,000 young people from the ages 16-25 who are unemployed which equates to an unemployment rate of 14.2% among young people.[2] This is up from 31,000 (13.8%) the year before.

Statistics

In September 2025, The Trade Union Congress stated that the level of 16-24 year olds not in employment, education or training (NEET) was at 948,000[3] (12.7% of people 16-24[4]), the largest number of "NEETs" since 2011 - with the 2011 number being primarily driven by the 2008 financial crash[4]. However, as a whole there are 2.86 million people aged 16-24 who are economically inactive[5]. In 2021 it was reported by the Commission on Race and Ethnic Disparities that Black African ethnic groups faced the highest levels of youth unemployment at 26%.[6] Between 2014 and 2022, the area with the worst youth unemployment was the Outer London region with 21.2% of 16 to 24 year olds being unemployed compared to the 2022 average of 11%[7].

Graduates

Of those who graduated in 2022, 61% of university graduates were able to gain full-time work within 15 months of graduating[8]. In 2024 67.9% of graduates in England were in "high-skilled" work[9].

Causes

There is debate as to the causes of youth unemployment. Some of the causes of youth unemployment in the United Kingdom are not specific to young people.[10] Widely cited causes of youth unemployment in the United Kingdom include these:

  • Financial Crisis: Graduate recruiters recruited less because of the 2008 financial crisis.
  • Public sector cuts: The cuts to the public sector have also affected young people.[11]
  • Lack of qualifications: A report by Centre links youth unemployment and poor results in GCSE English and Maths.[12]
  • Lack of experience: Recruiters becoming more risk averse and looking to recruit more experienced older staff.
  • Covid-19: 46% of jobs lost in the first year of the pandemic were young people[13], with nearly two thirds of jobs lost through out the pandemic being those belonging to young people[14].

Some alternative theories exist as well, for example Tim Worstall of the free-market Adam Smith Institute has argued that the introduction of minimum wage legislation in the United Kingdom has contributed to youth unemployment by increasing the wage bill for firms,.[15]

Effects

Youth unemployment increases the chance of a worker experiencing unemployment in adulthood.[16] Some have linked the London riots of 2011 with the high level of youth unemployment.[17]

Economic

Those under 25 years old are entitled to £56.25 a week in Job Seeker's Allowance (a lower amount than for 25s and over). In economic terms, youth unemployment equates to £10m a day in lost productivity[18] and the total direct cost of youth unemployment is £4.7bn a year.[19] Unemployment for over six months while a teenager also increases the chances of an individual being unemployed in adulthood.[20]

Underemployment

Many young people are underemployed.[21] In July 2012 The Telegraph reported that Scottish Job Centres were advising graduates to take survival jobs in areas such as cleaning and to omit their degrees because they may deter future employers.[22] The Graduate Fog website reports that one in five graduates want to work more hours than their employer can offer.[23] According to the Trade Union Congress 13% of young women and 10% of young men are underemployed, something they call "alarming" and a "critical waste of talent".[23]

Mental health

A 2010 report by The Prince's Trust[24] highlighted that youth unemployment can have a negative impact on the mental health of young people and that it is a risk factor in suicide and attempted suicide.[25] According to the report that was carried out by interviewing 2,170 young people aged 16 to 25[26] 48% of individuals suffered insomnia, depression and panic attacks due to being unemployed[24] and individuals were twice as likely to self-harm or suffer panic attacks if they had been unemployed for over a year.[26] In 2010 it was reported that a graduate committed suicide after a two-year search for work.[27] The impact has also been expected to extend into future employment opportunities, as many youth become extremely risk-averse to future opportunities.

Emigration

A survey by Student Currency Exchange found that half of young people aged 18–25 they surveyed were 'seriously considering' emigrating in order to find work.[28][29]

Response

The Conservative-Liberal Democrat coalition government have abolished the Labour Party's Future Jobs Fund and replaced it with an apprenticeship scheme.[30] The Recruitment and Employment Confederation have proposed an overhaul of school's career guidance and a drive to increase apprenticeships.[19]

Dominic Raab called for the National Minimum Wage to be scrapped for 16- to 21-year-olds in order to boost youth employment,[31] though doubts were raised as to whether or not this is an effective measure.[32]

The Labour Party have called for a tax on bankers' bonuses in order to help fund a job scheme for the young unemployed.[33]

Workfare

Main article: Workfare in the United Kingdom
Further information: Caitlin Reilly and Jamieson Wilson v Secretary of State for Work and Pensions

The Coalition government have also implemented workfare programmes for the long term unemployed. In 2012 a University graduate Cait Reilly took the Department for Work and Pensions to Court arguing that the scheme whereby she had to work "for free" in Poundland in order to keep her benefits was a breach of the European Court of Human Right's prohibition on slavery.[34] The Department for Work and Pensions won the case.

In London that same year, then Conservative Party Mayor of London Boris Johnson had launched a workfare scheme for those who had less than six months of national insurance contributions. 6,000 individuals aged 16–24 had to undertake 13 weeks of unpaid work in order to claim their £56-per-week Job Seekers' Allowance.[35]

Youth contract

A government scheme has been introduced in the United Kingdom that is aimed at tackling youth unemployment.[36] The scheme has been criticised as ineffective. Lottie Dexter of the campaign group Million Jobs has compared the scheme to "fighting a forest fire with a water pistol".[37]

See also

References

  1. ^ "Jump in the jobless: Unemployment on the rise again with 21.1% of young people now out of work". Daily Mirror. 20 March 2013.
  2. ^ Francis-Devine, Brigid (2025-07-22). "Youth unemployment statistics". {{cite journal}}: Cite journal requires |journal= (help)
  3. ^ Arkwright, Alice; Klair, Anjum (10 September 2025). "An ambitious plan for young people". Trades Union Congress: TUC.
  4. ^ a b "What is a Neet and what causes a young person to become one?". BBC News. 2025-11-19. Retrieved 2025-11-20.
  5. ^ Francis-Devine, Brigid; Brooks, Campbell; Powell, Andrew B. (2025-11-20). "Youth unemployment statistics". {{cite journal}}: Cite journal requires |journal= (help)
  6. ^ "Employment, fairness at work, and enterprise". GOV.UK. Retrieved 2025-11-20.
  7. ^ "Youth unemployment - Social Mobility Commission State of the Nation - GOV.UK". social-mobility.data.gov.uk. Retrieved 2025-11-20.
  8. ^ Otte, Jedidajah (2024-08-29). "'Like throwing myself at a wall': UK graduates struggle in 'insane' job market". The Guardian. ISSN 0261-3077. Retrieved 2025-11-20.
  9. ^ "Graduate labour market statistics, Calendar year 2024". explore-education-statistics.service.gov.uk. Retrieved 2025-11-20.
  10. ^ Pettinger, Tejvan (2019-10-18). "Reasons for Youth Unemployment". Economicshelp.org. Retrieved 2020-03-15.
  11. ^ O'grady, Sean (2010-07-07). "Young workers to be hardest hit as public sector cuts back". The Independent. London. Archived from the original on November 8, 2012. Retrieved 2010-07-13.
  12. ^ Reasons for Youth Unemployment | Economics Blog
  13. ^ Williams, J (20 October 2021). "A Better Future: Transforming jobs and skills for young people post-pandemic" (PDF). Institute for Economic Studies: 9.
  14. ^ Bawden, Anna (2021-03-23). "Almost two-thirds of people who lost jobs in UK pandemic are under 25". The Guardian. ISSN 0261-3077. Retrieved 2025-11-22.
  15. ^ Worstall, Tim (2012-06-19). "Message to the TUC: the minimum wage causes youth unemployment – Telegraph Blogs". London: Blogs.telegraph.co.uk. Archived from the original on 2012-06-19. Retrieved 2012-11-07.
  16. ^ "Youth unemployment 'a national crisis' - Channel 4 News". Channel4.com. 2010-02-17. Retrieved 2010-07-13.
  17. ^ London Riots 2011: Youth Unemployment at Heart of Problem – International Business Times
  18. ^ "Don't consign a generation of young men to the scrapheap | The big issue | From the Observer | The Observer". London: Guardian. 2010-07-11. Retrieved 2010-07-13.
  19. ^ a b Monaghan, Angela (2010-07-03). "UK must avoid a 'lost generation' of jobless". Telegraph. London. Retrieved 2010-07-13.
  20. ^ "David Miliband: youth unemployment problems started under Labour". Telegraph. London. 2011-11-16. Retrieved 2012-11-07.
  21. ^ Cassidy, Sarah (2010-06-12). "Recent graduates employ new tactics to tackle the job market". The Independent. London. Archived from the original on 2022-05-07. Retrieved 2010-07-13.
  22. ^ Johnson, Simon (2012-07-27). "Scottish graduates being forced to take 'survival jobs'". Telegraph. London. Retrieved 2012-11-07.
  23. ^ a b "Want more work than you can find? You're one of the new 'under-employed'". Graduate Fog. 6 September 2012. Retrieved 2012-11-07.
  24. ^ a b "BBC News – Report links joblessness to poor mental health in young". Bbc.co.uk. 2010-12-29. Retrieved 2012-11-07.
  25. ^ Bannister, Guy (2010-01-05). "Young unemployed recession victims also suffer from mental health issues". The Guardian. London.
  26. ^ a b "BBC News – Prince's Trust: Young unemployed 'face mental problems'". Bbc.co.uk. 2010-12-29. Retrieved 2012-11-07.
  27. ^ Jobseeker, 21, commits suicide after two year search for work | Graduate Fog
  28. ^ "Young jobseekers look to move abroad". Totaljobs.com. Retrieved 2012-11-07.
  29. ^ "Is Britain on the Brink of its Worst Brain Drain Ever?". Shelteroffshore.com. Retrieved 2012-11-07.
  30. ^ "Coalition is cavalier on unemployment | Chuka Umunna | Comment is free | guardian.co.uk". London: Guardian. 2010-06-30. Retrieved 2010-07-13.
  31. ^ Dominic Raab MP: Red-tape in business is socially unjust, as well as being economically uncompetitive Comment
  32. ^ "Young adults and the minimum wage: The case for lowering age eligibility" (PDF). Unison. New Policy Institute. June 2017. Retrieved 26 April 2020.
  33. ^ "Ed Balls calls for new bankers' bonus to help young unemployed on visit to University Academy Keighley (From Bradford Telegraph and Argus)". Thetelegraphandargus.co.uk. 2012-04-27. Retrieved 2012-11-07.
  34. ^ Bingham, John (2012-08-06). "Judge rejects 'slave labour' claim over Poundland work experience scheme". The Daily Telegraph. London.
  35. ^ Malik, Shiv (2012-08-28). "Boris Johnson launches unpaid work scheme for young Londoners". The Guardian. Retrieved 2012-11-07.
  36. ^ "Helping young people into work". 15 December 2011.
  37. ^ "The Independent View: Government must do more on youth unemployment". Archived from the original on 2014-02-22.
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