NEETs explained: why almost a million young people are not in work or education

Almost one in eight young people in the UK is not working, not studying and not training. This is a major economic and social issue, and a perfect A-Level Economics topic. Here are the numbers, causes, costs and policies, and how to use them in an exam.

What does NEET mean?

NEET stands for "Not in Education, Employment or Training". The Office for National Statistics (ONS), which publishes official UK data, counts young people aged 16 to 24. A student at school, college or university is not NEET. Someone with a part-time job is not NEET. A young person is NEET only if they are doing none of these things.

The latest figures

The most recent ONS estimate covers April to June 2026. It found:

• 981,000 young people aged 16–24 were NEET, which is 13.0% of the age group [1].
• This was 30,000 more than a year earlier, but 30,000 fewer than in the previous three months [1].
• In January to March 2026, the number had passed one million (1,012,000, or 13.5%) [2], reported as the highest level in about 12 years [5].
• More young men (530,000) than young women (451,000) were NEET [1].

For comparison, the figure peaked at around 1.25 million (16.9%) in July to September 2011, after the financial crisis [3]. So today's level is not a record, but it has risen again after years of improvement. The overall UK unemployment rate is 4.7% [11].

One warning: these numbers come from a survey. The ONS says the estimates for small groups are volatile, so you should not read too much into one quarter's change [1]. The next release is due on 26 November 2026 [1].

Unemployed or economically inactive?

So about 6 in 10 NEETs are inactive, not unemployed [1]. This matters because the official unemployment rate does not count them. A policy that only helps job seekers will miss most NEET young people.

What causes it?

In 2025 the government asked Alan Milburn, a former health secretary, to lead an independent review called Young People and Work. Its interim report (May 2026) is the key recent source of evidence [4]. Its main findings:

• Health, especially mental health. In 2025, 44% of NEET young people said a health condition limited their ability to work, up from 26% in 2015. Among disabled NEET young people, the share whose main condition is mental health rose from 24.3% in 2011 to 42.6% in 2025 [4].
• Fewer entry-level jobs. The review says first jobs have become "less plentiful and more demanding", and that apprenticeship starts for young people have fallen by over 40% [4].
• No work experience. About 6 in 10 NEET young people have never had a job, compared with about 4 in 10 twenty years ago [4].
• Not only low qualifications. Many NEETs have few qualifications, but the review found that 15% have a degree [4].

Economists group these causes into supply-side factors (health, skills, experience) and demand-side factors (how many jobs employers offer young people). The review says both matter [4].

The costs: to people and to the economy

For the individual: "scarring"

Time out of work when young can cause harm that lasts for years. Economists call this scarring. The review found that 65% of NEETs who have been out for less than a year return to education or work the next year, but only 25% of those out for more than a year do [4]. It estimates that a young person can lose up to £300,000 in lifetime earnings, even if they later find work [4].

For the economy

• Lost output: fewer workers means the economy produces less than it could.
• Government finances: less income tax is collected, and more is spent on benefits. The review found £8.1 billion is spent on key benefits for 16–24 year olds [4].
• Total cost: the review estimates the cumulative cost of almost one million NEET young people at £125 billion a year, more than the UK spends on education [4].

The interim report warned that youth inactivity could exceed 1.25 million within five years without action [5].

What is the government doing?

• Youth Guarantee. Since 29 June 2026, every jobcentre offers extra support to 16–24 year olds who make a new claim for Universal Credit (the main UK benefit for people on low incomes). Those still not earning or learning by week 13 get an in-depth meeting with a work coach [6].
• Youth Jobs Grant. From 30 June 2026, employers can receive £3,000 for hiring an eligible 18–24 year old who has been on Universal Credit and looking for work for six months [6].
• Jobs Guarantee. Young people who have been on Universal Credit and looking for work for 18 months are offered a six-month paid job of up to 25 hours a week at the minimum wage, fully funded by the government. Pilots began in April 2026 in six areas for 18–21 year olds [7]. A national version for 18–24 year olds starts in November 2026 across 25 areas, aiming to support over 90,000 young people over three years [8].
• Budget, 28 October 2026. The Budget confirmed the Jobs Guarantee extension to 22–24 year olds, the Youth Jobs Grant, and a £2,000 payment for smaller employers that take on young apprentices. The government said it will respond to Milburn's final report before the end of 2026, with a White Paper (a document setting out plans for new laws) expected early in 2027 [9]. Minimum wages will rise by 3.9% from April 2027, to £11.27 an hour for 18–20 year olds and £8.31 for 16–17 year olds and apprentices [9][10].

Using this in an Economics exam

Imagine a question: "Evaluate the likely impact of a rise in the number of young people who are NEET on the UK economy." Here is a short model chain of reasoning.

Notice the structure: each step links to the next with "so" or "because", the answer uses real data, and the evaluation explains what it depends on, not just "it depends".