Nearly One Million Young People Out of Work and Education as Minister Criticises Benefits System

Nearly one million young people across the UK are neither earning nor learning, despite a modest quarterly fall in the number outside employment, education or training.

The Office for National Statistics estimated that 981,000 people aged 16 to 24 were not in education, employment or training, commonly described as NEET, between April and June 2026.

Work and Pensions Secretary Pat McFadden said young people should not be blamed for struggling to enter the labour market. He instead criticised a benefits system that he said can leave people 'signed off and written off'.

The Government is responding by expanding its Jobs Guarantee, which promises subsidised work to more than 90,000 young people over the next three years.

Latest Figure Falls Below One Million

The latest ONS figures, published on 27 August, estimated that 13 per cent of people aged 16 to 24 were outside work, education and training.

The total fell by approximately 30,000 compared with the previous quarter, taking it below one million. However, it remained 30,000 higher than during the same period in 2025.

Young men accounted for 530,000 of the total, compared with 451,000 young women. The annual increase was largely driven by men, whose number rose by approximately 25,000.

The NEET category does not mean that all 981,000 people are unemployed and searching for jobs.

Approximately 393,000 were classified as unemployed because they were actively seeking work and available to start. Another 588,000 were economically inactive, meaning they were not working but did not meet the official definition of unemployment.

Economic inactivity can have several causes, including illness, disability, caring responsibilities or discouragement after an unsuccessful search for work.

The ONS also warned that its Labour Force Survey figures are estimates and can be volatile, particularly when measuring smaller sections of the population. Short-term movements should be treated cautiously.

McFadden Says Young People Are Not to Blame

McFadden addressed the crisis while visiting a Boots warehouse in Nottinghamshire, where some of the first participants in the Government's Jobs Guarantee had started administrative, retail and warehouse roles.

He rejected suggestions that today's young people were inherently less prepared for employment than previous generations.

McFadden said employers had always needed to provide new workers with training, teamwork skills and experience. He also argued that difficulties entering work had persisted for several years and could not simply be blamed on young people's attitudes.

His criticism extended to Universal Credit, which he said draws an overly rigid distinction between people considered fit for work and those judged unable to work.

That approach could leave some young people without the personalised support, training or gradual route into employment they need, he said.

McFadden acknowledged that ministers had a responsibility to help young people gain skills, confidence and experience. He described work, education, training and other 'purposeful activity' as possible routes out of long-term inactivity.

How the Jobs Guarantee Works

The Jobs Guarantee is aimed at people aged 18 to 24 who have been claiming Universal Credit and looking for work for at least 18 months.

Under the scheme, the Government funds up to 25 hours of paid employment each week for six months. Participants receive at least the relevant National Minimum Wage, along with minimum workplace pension contributions where applicable.

Employers can offer additional hours or higher wages, but they must cover those extra costs themselves.

The programme also provides support intended to address barriers such as limited experience, low confidence and missing workplace skills.

More than 90,000 subsidised jobs are expected to be created by 2029. Boots and facilities management company OCS are among the major employers supporting the initiative.

The initial rollout covers Birmingham and Solihull, the East Midlands, Greater Manchester, Hertfordshire and Essex, central and eastern Scotland, and parts of south-east and south-west Wales.

The Government plans to expand the programme to all eligible claimants later in 2026.

First Participants Begin Work at Boots

The first participants have already taken positions in Boots stores, offices and warehouses.

Boots UK and Ireland managing director Anthony Hemmerdinger said retail could help young people develop experience, confidence and transferable skills.

McFadden said he had seen signs that employment was already improving participants' confidence and expectations for the future.

The Government also hopes the programme will reduce long-term benefit spending. Once participants begin earning wages, they may no longer require the same level of Universal Credit support.

However, six months of subsidised employment will not automatically provide lasting job security. The scheme's success will ultimately depend on how many participants move into permanent work, apprenticeships or further training after their placements end.

Government Faces a Longer-Term Test

The Jobs Guarantee directly targets young people who have spent at least 18 months looking for work, but it will not cover every person included in the NEET statistics.

Those who are economically inactive because of serious illness, disability or caring responsibilities may require healthcare, social care or specialised employment support before conventional work becomes possible.

Others may be affected by a shortage of entry-level vacancies, inadequate transport, limited qualifications or employers demanding experience from first-time applicants.

The latest quarterly decline offers some encouragement, but the annual increase shows that the wider problem remains unresolved.

With 981,000 young people still outside work, education and training, ministers will be judged not only on how many temporary placements they create, but on whether those opportunities lead to secure employment and lasting independence.