Prime Minister Keir Starmer has described a major new report into Britain’s growing NEET crisis as “sobering”, after fresh warnings that the country risks creating a “lost generation” of young people disconnected from work and education.

The government-commissioned review, led by former Labour minister Alan Milburn, paints a stark picture of the challenges facing 16 to 24-year-olds who are not in employment, education or training — commonly known as “NEETs”.

According to the report, the number of young people classed as NEET has now risen above one million, the highest level seen since 2013. The review warns that figure could rise to around 1.25 million within five years unless urgent action is taken.

Speaking after the findings emerged, Starmer said the report was “sobering”, acknowledging the scale of the challenge facing younger generations trying to enter the labour market.

Report Warns of Structural Problems

The Milburn review argues that the crisis is not simply about motivation or work ethic among younger people, but rather deep-rooted structural problems in the economy and public services.

Among the issues highlighted were:

  • Falling numbers of entry-level and low-skilled jobs
  • A major decline in apprenticeships over the past decade
  • Rising mental health problems among young adults
  • Reduced opportunities for part-time and “Saturday” jobs
  • Increasingly complex recruitment systems for basic roles
  • A welfare system focused more on benefits than employment support

The report states that 84% of young people currently classed as NEET say they want to work or train, challenging stereotypes that young people are simply unwilling to participate in the workforce.

It also found that nearly 60% of economically inactive young people have never had a job.

Economic Impact Could Reach £125 Billion

The review warns that the long-term economic cost of failing to address youth inactivity could be enormous.

Researchers estimate Britain risks losing up to £125 billion in economic growth every year if large numbers of young people remain disconnected from employment and education permanently.

The report also estimated that integrating more NEET young people into the workforce could potentially add £38 billion to the UK economy.

Mental health was identified as one of the fastest-growing drivers behind economic inactivity, with anxiety, depression and neurodevelopmental conditions increasingly cited by young people as barriers to work.

Calls for Urgent Action

Milburn has urged ministers to pursue major reforms across education, welfare, health and employment policy in order to prevent the situation worsening further. Final recommendations from the review are expected later this year.

The Labour government has already announced plans aimed at increasing work experience and youth employment opportunities, including proposals linked to its wider “Youth Guarantee” programme.

However, critics argue that the scale of the crisis will require far broader intervention if Britain is to reverse rising levels of youth disengagement from work and education.

What Does NEET Mean?

“NEET” stands for “Not in Education, Employment or Training” and is used in the UK to describe people aged 16 to 24 who are outside all three categories. The term has been widely used in government statistics and labour market analysis for more than two decades.