Thank you for subscribing!

The Labour Government has promised to tackle youth unemployment with the launch of its Job Guarantee scheme

The number of young people not in education, employment or training has fallen back below one million, according to figures published by the Office for National Statistics this morning.

An estimated 981,000 16 to 24-year-olds in the UK were classed as NEET between April and June, down 30,000 on the previous quarter, when the total topped one million for the first time since 2013.

That puts the NEET rate at 13.0 per cent of the age group, a drop of 0.5 percentage points on the quarter.

However, the ONS noted that the underlying trend is still upwardsas the total is 30,000 higher than the same period last year, and the rate is up 0.2 percentage points on April to June 2025.

The ONS also cautioned that its Labour Force Survey estimates remain volatile for smaller breakdowns such as NEET figures, meaning the quarterly fall should be treated with care.

Earlier this year, a Government-commissioned report conducted by former Labour minister Alan Milburn warned that NEETs figures were "more than an economic crisis; it is a moral one".

Mr Milburn' final report is expected to be published in the coming weeks with the Government doubling down on its Jobs Guarantee scheme to support young people into work.

Some 90,000 fully funded jobs are expected be created by 2029 through the Jobs Guarantee, a crucial component of the Government’s £2.5billion drive to tackle youth unemployment.

Work and Pensions Secretary Pat McFadden said: "We are determined to turn the tide on the youth unemployment crisis, which has been years in the making, with the number of young people not in education, employment or training rising by 248,000 between 2021 and 2024.

"These latest figures underline why we are addressing youth inactivity as a priority.

“The Jobs Guarantee is already supporting those most in need with the first young people to be supported by the scheme now in work, and our wider £2.5billion investment will help create almost a million opportunities to earn or learn."

Recent analysis conducted by youth employment charity Impetus found that each young person who becomes NEET costs the state an average of £244,000 over their lifetime.

With close to one million young people currently NEET, the current lifetime cost to the public purse runs into roughly £240billion.

Susannah Hardyman MBE, CEO of Impetus, said: "As the number of young people neither earning nor learning continue to rise, the costs to the public purse will only grow unless the Government acts.

"The consequences are not just devastating for young people themselves; they carry a huge and growing cost for the taxpayer.

"We estimate that each young person who becomes NEET costs the state an average of £244,000 over their lifetime, through lost tax revenues and higher welfare, NHS and criminal justice costs."

Henry Parkes, principal economist at IPPR, said: "These figures confirm that too many young people are still struggling to get a first foothold in work.

"The answer isn’t simply to tell young people to try harder. Where you live can make a huge difference to your chances, and in too many parts of the country there simply aren’t enough suitable first jobs to go around.

"The Milburn Review should match support with opportunity: creating thousands of paid first jobs where they are needed most, opening up more apprenticeships and giving young people proper, personalised support."