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Urgent warning over 'lost generation' as youth unemployment set to surge

A new report warns the number of 16- to 24-year-olds out of work, education or training could reach 1.25 million by 2031, fuelling fears of a 'lost generation' and deepening regional inequality.

UK

Urgent warning over 'lost generation' as youth unemployment set to surge

A stark new report has warned that the number of young people in the UK who are not in education, employment or training (Neet) could rise to 1.25 million by 2031, prompting fears of a 'lost generation'.

The analysis, published by the youth charity Impetus, paints a worrying picture of shrinking opportunities for 16- to 24-year-olds, particularly those from disadvantaged backgrounds. It comes as separate figures show that the number of Neet young people already stands at around 870,000 – a figure that has barely budged since the pandemic.

A new report warns the number of 16- to 24-year-olds out of work, education or training could reach 1.25 million by 2031, fuelling fears of a 'lost generation' and deepening regional inequality.

Researchers say the projected rise is driven by a combination of factors: the cost-of-living crisis, cuts to youth services, and a labour market that increasingly demands higher-level skills. Without urgent intervention, they argue, hundreds of thousands of young people risk being left behind, with long-term consequences for their earnings, health and social mobility.

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Andy Ratcliffe, chief executive of Impetus, said: 'Opportunities are shrinking for too many young people. We are sleepwalking towards a lost generation. The government must act now to prevent a crisis that will blight lives and cost the economy billions.'

The report calls for a 'youth guarantee' – a legal right to a job, training or education place for every 16- to 24-year-old – and for better data collection to identify those most at risk. It also highlights the success of programmes like the Youth Futures Foundation's 'supported employment' model, which helps young people with complex needs into work.

Why this matters to UK readers

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The Neet issue is not just a problem for the individuals affected. It has profound implications for the UK economy, which is already grappling with labour shortages in key sectors such as hospitality, construction and social care. If more young people are locked out of the workforce, the tax base shrinks, benefit bills rise and social cohesion frays.

There is also a stark regional divide. Young people in the North East, West Midlands and parts of London are far more likely to be Neet than those in the South East. The report warns that without action, these inequalities will deepen.

What happens next

Ministers have said they are committed to reducing the number of Neet young people, pointing to initiatives such as the 'Youth Offer' and the expansion of apprenticeships. But critics argue that current policies are too piecemeal and underfunded. The Impetus report is likely to intensify pressure on the government to adopt a more ambitious, cross-departmental strategy.

A Downing Street spokesperson said: 'We are determined to ensure every young person has the opportunity to succeed. We will study the report's recommendations carefully.'

What This Means For You

If you are a young person or a parent, this report is a reminder to explore all available options – from apprenticeships and traineeships to further education and supported employment programmes. Local councils and charities often offer free advice and mentoring. If you are an employer, consider how you can create inclusive pathways for young people, including work experience and entry-level roles. For everyone, the message is clear: the future prosperity of the UK depends on not leaving a generation behind.

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