Economy February 26, 2026

Britain’s NEET population nears 1 million as youth labour market strains persist

Official data shows 957,000 16-24 year olds were not in employment, education or training at end-2025, keeping levels near a decade high

By Nina Shah
Britain’s NEET population nears 1 million as youth labour market strains persist

Official figures released Thursday show 957,000 young people aged 16-24 were classified as not in employment, education or training (NEET) in the final quarter of 2025, an increase from the previous quarter and close to the peak recorded a year earlier. The NEET rate rose to 12.8% while broader unemployment measures also remain elevated. Bank of England Chief Economist Huw Pill attributed part of the challenge to a rise in the minimum wage and higher employer social security charges.

Key Points

  • 957,000 young people aged 16-24 were NEET in the final quarter of 2025, up from 946,000 the previous quarter and just below the 971,000 recorded a year earlier.
  • The NEET rate rose to 12.8% from 12.7% quarter-on-quarter and remains below the 10-year high of 13.2% recorded a year earlier; the unemployment rate for 16-64 year olds was 16.1%.
  • Bank of England Chief Economist Huw Pill attributed part of the hiring difficulty for young people to a higher minimum wage and greater employer social security charges, which can affect employers and the labour market.

New government figures published Thursday reveal that 957,000 young Britons aged 16-24 were not in employment, education or training at the end of 2025. That count, known by the acronym NEET, edged up from 946,000 in the quarter immediately before and remains only slightly below the 971,000 recorded in the final quarter of 2024, which was the highest level since 2014.

The NEET rate for the 16-24 cohort stood at 12.8% in the final quarter of 2025, up from 12.7% in the previous quarter. While this marks a quarterly increase, the rate is still under the 10-year high of 13.2% seen a year earlier.

Broader labour market indicators also show strain. The unemployment rate for 16-64 year olds was reported at 16.1% in the latest data release. Observers often treat the NEET metric as a more direct gauge of difficulties facing younger people trying to enter work or education than the headline youth unemployment rate. The latter reached its highest level in 10 years in the final quarter of 2025.

Commenting on labour market frictions earlier this week, Bank of England Chief Economist Huw Pill told a parliament committee that a rise in the minimum wage and increased employer social security charges had contributed to the difficulty young people face in getting a foothold in the job market. His remarks point to changes in labour costs that may be affecting hiring decisions for roles typically occupied by younger workers.

The latest NEET tally and related rates underline persistent challenges for the 16-24 age group in securing employment or training places. The data shows a marginal quarterly deterioration, and it remains close to the peak recorded in the prior year. Analysts and policymakers will likely continue to monitor these measures as indicators of the health of youth labour market participation and the early-career prospects of that cohort.

Risks

  • A rising NEET population signals persistent disconnection of young people from work and training, posing risks to labour force participation and skills pipeline, which impacts the labour market and education sectors.
  • Increases in labour costs cited by the Bank of England, including a higher minimum wage and employer social security charges, may constrain hiring for entry-level roles and affect businesses that employ young workers.
  • Differences between NEET and headline youth unemployment measures create uncertainty about the precise scale and nature of youth labour market difficulties, complicating policy responses and market assessments.

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