Youth Opportunity Tracker: NEET Rate Falls, Challenges Remain

The King’s Trust Youth Opportunity Tracker is a new quarterly barometer of the youth labour market. Combining key labour market data from the Office of National Statistics with analysis from The King’s Trust and the experiences of young people, it tracks changes in the labour market and explores what they mean for young people seeking work and opportunity across the UK.

NEET rate falls, but opportunities for young people remain limited

While the headline rate shows a fall in the number of young people in the UK who are not in education, employment or training (NEET), this remains higher than the same period last year. It should be considered in the context of a challenging labour market where vacancies continue to lag behind pre-pandemic levels and employer hiring intentions remain subdued.

Almost one million young people remain disconnected from work and education

Almost a million young people across the UK remain not in education, employment or training (NEET), highlighting the scale of the challenge facing this generation. While the number of NEET young people has fallen by 30,000 compared with the previous quarter, it remains around 30,000 higher than at the same point in 2025.
This may suggest some short-term improvement, but the longer-term trend remains concerning and underlines the need for sustained action to support more young people into work, education and training.

The challenge is particularly acute for those furthest from the labour market.

Around 588,000 NEET young people are economically inactive, meaning they are not available for, or actively seeking, work. Although this is an improvement on the previous quarter, it remains above the level seen a year ago. Understanding the barriers facing these young people will be critical if support is to be targeted effectively and help more young people move towards employment or learning opportunities.

Falling vacancies create a tough labour market for young people

Despite improvements in some indicators, the wider labour market remains difficult for young people trying to take their first steps into work. Vacancies continue to fall, reducing the number of entry-level opportunities available and increasing competition for jobs.

Recent employment data showed that young people are around five times more likely to be unemployed than those aged 25 to 64, demonstrating the disproportionate challenges they face in accessing work.

However, this sits alongside a more positive signal in the payroll data, with the number of 18 to 24-year-olds on payroll increasing for five consecutive months. This suggests that some young people are continuing to move into work, even as the overall recruitment market becomes more constrained.

The outlook for recruitment remains subdued

The British Chambers of Commerce Quarterly Recruitment Outlook found that fewer than a quarter (23%) of businesses expect to increase their workforce in the coming months. In retail, a sector that employs large numbers of young people, that figure falls to just 13%.

Against this backdrop, ensuring young people have access to the skills, confidence and experiences employers value will be increasingly important.

Education and training remain key to improving youth opportunity

The figures also highlight the importance of participation in education and training. Only 43% of 18 to 24-year-olds in the UK are in education, compared with an OECD average of 53%.

Evidence suggests that the UK’s comparatively high NEET rate is driven not only by employment outcomes but also by lower participation in education and vocational training. This makes changes in the proportion of young people engaged in learning particularly significant for the long-term opportunity picture.

While the labour market remains challenging, improving access to education, skills development and training pathways offers an important route to better outcomes. Supporting more young people to stay connected to learning and gain the skills needed for future employment will be essential to reducing youth unemployment and expanding opportunity across the UK.

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