More than 1m young people not in work or education - ONS

(Sharecast News) - The number of young people not in education, employment or training (Neets) has risen to more than 1 million, according to figures released on Thursday by the Office for National Statistics.

There were an estimated 1.01m young people between the ages of 16 and 24 who were Neet in January to March 2026, the ONS said. This is up by 89,000 from the same period a year earlier, and by 55,000 on October to December 2025.

"This increase was largely among young men, with an increase of 55,000 on the year, as well as an increase among young women of 34,000 on the year," the ONS said. "Of the total number of young people who were Neet, 553,000 were young men and 459,000 were women."

The data also showed there were an estimated 613,000 economically inactive young people who were Neet during the period, up 44,000 on the year from January to March 2025, and by 66,000 on the quarter from October to December 2025.

The ONS defines economically inactive people as not in employment, but also not meeting the internationally accepted definition of unemployment because they have not been seeking work within the last four weeks and/or they are unable to start work in the next two weeks.

ONS head of labour market output Elise Rohan said: "The number of young people not in employment, education or training rose above one million in the first quarter of 2026, to its highest level in more than 12 years.

"This was driven by greater numbers of young people no longer looking for work."

Danni Hewson, head of financial analysis at AJ Bell, said: "Sadly there were no real surprises in today's NEET data, or in the review carried out by Labour peer Alan Milburn looking at the factors which have created what has been dubbed a 'lost generation' of workers.

"A record 613,000 of the more than one million 16 to 24-year-olds not in employment, education or training were also classed as economically inactive. Many of them are simply stuck and disillusioned by their experience of trying to climb the first step of the employment ladder.

"Trying to find first jobs has become increasingly difficult, with both the retail and hospitality sectors bearing the brunt of changes to employer National Insurance (NI) in April 2025. Those entry level roles, such as a Saturday job washing dishes, a paper round or shelf stacking at the local convenience store, help develop the soft skills and work readiness that employers are looking for.

"It's a catch 22 situation for many young people. They are told they need experience to find a job but can't get that experience without first getting a job.

"The increased cost of labour, the disproportionately large jump in the national minimum wage for under 18s, the lowering of the NI threshold and changes to employment law have all given employers pause for thought. If those measures hadn't come in at a time households and businesses were still trying to recover from the impact of the first cost of living crisis, the result might not be as severe.

"Businesses have cut back on their labour force, in some cases assisted by AI advances which deliver productivity gains today. That could prevent tomorrow's workforce from being given the opportunity to develop the skills that will be needed when older workers retire, particularly in the retail and hospitality sectors.

"The cost isn't just something to be counted in the future. Not only are these young people not contributing to the public purse through the tax system, but they are also being supported by it in growing numbers.

"Whilst the government has said it is supporting more young people to get into work, there's a danger that by the time any meaningful change is made, many of the million youngsters struggling today will have been left behind."