Nearly a million young people in the UK are neither working nor in education or training, with youth unemployment far higher than among other age groups. The government is considering tightening access to some sickness and disability benefits for under-25s to fund expanded employment support, but the proposals could trigger a backlash within the ruling Labour Party.
Reuters reported that 981,000 people aged 16 to 24 in the UK were not in employment, education or training in the second quarter of this year, accounting for 13% of that age group. Last year, the UK had the second-highest proportion in Europe.
The UK's youth unemployment rate stands at 15.6%, far above the 3.4% rate among older workers. By comparison, youth unemployment rates elsewhere in Europe are typically only slightly more than twice those of older age groups.
Former minister Alan Milburn, who is studying youth employment, warned that the UK risked creating a "lost generation". He is expected to submit a report next week recommending that under-25s be barred from receiving sickness-related payments under general unemployment benefits, and that eligibility for the main disability benefit be tightened.
Milburn said the reforms could mean less financial support for some people. But he argued that the government should rebalance the current 25-to-one ratio of welfare spending to employment support spending, directing more resources towards helping young people return to work.
However, benefit cuts are expected to face opposition from some Labour MPs. Former prime minister Keir Starmer's earlier attempt to cut benefits was blocked by MPs from his own party.
The UK head of employment charity Generation said training courses must match employers' actual recruitment needs. About 70% of the charity's trainees find work within a year of completing their courses, twice the average for similar programmes.
Faisa Omar, 27, had applied for more than 500 jobs without success. After taking a 10-week training course for the green energy sector in 2023, she found work within a month.
Meanwhile, artificial intelligence (AI) is also making it harder for young people to find work. An executive at IT consultancy FDM Group said that as AI takes on more white-collar tasks, companies' demand for entry-level staff is falling, creating a "silent hiring freeze".
Experts say the UK should learn from the Netherlands by not only providing vocational training but also actively reaching out to unemployed young people and helping them overcome barriers such as childcare needs and mental health problems.
Many students in the Netherlands begin long-term work placements at 17. About two-thirds of 16- and 17-year-olds have part-time jobs, compared with fewer than one in five in the UK. However, the proportion of young people in the Netherlands who are not in employment, education or training has also begun to rise in recent years.
