IPPR report reveals record youth unemployment fears as Neets exceed one million
New data from the Institute for Public Policy Research highlights a crisis of confidence in England’s younger demographic, with the number of young people not in education, employment, or training reaching a decade high.
A report by the Institute for Public Policy Research (IPPR) indicates that confidence among 16- to 21-year-olds in England has fallen sharply, with record numbers fearing long-term unemployment. The analysis reveals that young people are increasingly doubting that hard work will be rewarded, with only one in four aged 16 to 29 agreeing that everyone has a fair chance to succeed based on talent and effort. This contrasts with older demographics, where belief in meritocracy remains higher.
The proportion of 16- to 21-year-olds rating their chances of future success at 20% or less tripled from 2% in 2015-17 to 6% by 2023-25. Concurrently, the share of young people believing they had an 80% or greater chance of suffering long-term unemployment in their lifetime more than tripled to 7% over the same period. The IPPR attributes this shift to factors including austerity, rising housing costs, deteriorating mental health, and the influence of social media algorithms.
Concurrently, the number of young people not in education, employment, or training (Neets) has exceeded 1 million for the first time in a decade. Former Labour minister Alan Milburn is conducting a government review on reversing the rise in Neets, warning of a potential 25% rise to 1.25 million by 2030 if action is not taken. In an interim report, Milburn suggested that benefits changes may need to be part of the solution to prevent a potential lost generation.
The thinktank estimates that four in 10 women and three in 10 men aged 16 to 24 have poor mental health. Among those affected, only 24% believe they have a good chance of succeeding, compared with 48% of their peers. The IPPR argues that falling confidence is not just socially problematic but can have a detrimental impact on the economy by disincentivising young people from studying, working hard, and building savings.
In response to the crisis, the UK government has announced a £2.5bn youth employment support package and is expanding youth hubs across Great Britain. Prime Minister Keir Starmer is expected to announce restrictions on social media for under-16s in the coming days, amid concerns regarding the impact on children’s mental health. A government spokesperson stated the package aims to help almost 1 million young people either earn or learn.