Overview

• Nearly one million 16-24-year-olds in the UK are not in employment, education, or training (NEET), with official data showing 595,000 economically inactive and 392,000 unemployed but seeking work.
• Anecdotal claims presented to the House of Lords suggest some young people refuse jobs paying under £40,000, raising concerns over shifting attitudes toward work.
• Experts link the surge in youth economic inactivity to post-Covid mental health struggles, with additional factors including welfare and tax disincentives discouraging low-paid work.
• Labour has proposed a 'youth guarantee' to connect young people with work or training opportunities, alongside stricter benefits conditions for those who refuse such options.
• PwC and other analysts warn of long-term economic risks, including a potential generation permanently exiting the labor market if inactivity trends persist.