Youth unemployment in Britain surpassed 950,000 towards the end of 2025, according to the latest figures from the Office for National Statistics (ONS).
This latest uptick in unemployment among young people comes after the recent hikes to the National Living Wage and National Insurance contributions for employers, which were announced by Chancellor Rachel Reeves during her Budget statement in 2024.
Many business leaders have claimed the Chancellor’s tax raid has been a notable extra cost, resulting in many employers being unable to hire younger workers.
The number of young people not in employment, education, or training, otherwise known as Neets, jumped between October to December 2025.
The Chancellor’s tax decisions have came under fire
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ONS figures found that there were 957,000 Neets aged 16 to 24 over the period, a slight increase from 946,000 in the previous quarter.
David Freeman, joint head of the labour market division at the ONS, broke down why unemployment figures are on the rise.
He said: “The final quarter of 2025 saw a slight increase in the number of young people not in employment, education, and training compared to the previous quarter. This was driven by higher unemployment, with more young people actively looking for work.”
Previous ONS figures had revealed that youth unemployment is currently sitting at around 15 per cent for 16 to 24-year-olds, with overall unemployment rising to 5.2 per cent.
Rachel Reeves has made economic growth central her her agenda | GETTY
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Youth unemployment since 1992 | House of Commons Library
Economists have sounded the alarm over these figures as 900,000 graduates prepare to enter a tightening labour market in the UK.
Ben Harrison, the director of the Work Foundation at Lancaster University, said: “Today’s data is a stark reminder of the magnitude of the challenge facing young people and the Government.
“One in eight young people aged 16-24 are stuck out of education, employment, or training – with the overall number remaining stubbornly close to one million.
“Disabled young people are hit particularly hard, and there is a considerable risk that more young people will slip into long-term worklessness unless Government acts to address the causes of this rise.
Rachel Reeves announced plans to raise the National Living Wage and National Minimum Wage In her Budget on November 26 | GETTY
“Failure to do so could have damaging consequences, with previous studies suggesting that young people who fall out of work for health reasons could be more than £1million worse off over the course of their lifetime.
“The data indicates that more young people are now looking for work, with the number classified as ‘inactive’ down by 34,000 on the quarter.
“Although the number of young people in unemployment has risen by 45,000 over the same period, counterintuitively this may reflect more young people moving closer to entering employment – but only if they’re able to find work.”
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