Number of young people not in work or education to hit 1.25 million in five years

The author of the review, former minister Alan Milburn, said “we are at risk of a lost generation” as the systems are “no longer fit for purpose” for young people.

Around one in six 16-to-24-year-olds will not be in work, education or training in the next five years. 

Official UK figures from October 2025 to December 2025 revealed there were 957,000 young people in this category, equivalent to one in eight young people. The youth unemployment figure is at its highest since 2014.

Work and Pensions secretary Pat McFadden welcomes the findings after he commissioned the report to help young people find employment.

He said action is already being taken. It was announced in March that the government will pay businesses grants to hire young people.

A £1bn package is set to help create 200,000 jobs, with around 60,000 18-to-24-year-olds who have been looking for work for six months or more to be supported.

The report also arrives a few days after Next boss Lord Simon Wolfson told the BBC there is a crisis in youth unemployment.

He said: “Youth unemployment is really a symptom of wider problems with employment in the economy, and of course, if you’ve got fewer jobs, the people who suffer most are the people with the least experience and that is the youngest.”