Youth unemployment hits 16.2 percent under Labour

The news

UK youth unemployment for ages 16-24 reached 16.2 percent in April-June 2026, up from 14.3 percent the prior year, with 739,000 young people unemployed. The Starmer government had argued the increase in young people who are NEET is driven by increases in youth unemployment and a longer-term increase in the proportion of young people who are economically inactive. In response the government commissioned an independent review led by former Labour health secretary Alan Milburn to investigate the rise in youth inactivity. The interim report, published in July 2026, found that rising youth unemployment was not only about weakened demand but also a reduced ability of the labour market to support young people into work.

What's at stake

The number of NEET young people now exceeds one million. Studies have shown that time spent NEET can have a detrimental effect on physical and mental health and increase the likelihood of unemployment, low wages or low quality of work later in life. The latest ONS labour market data indicates that vacancies have fallen to their lowest level in normal times in more than a decade. The Milburn review found it was not necessarily a lack in basic skills preventing young people from entering the jobs market. Instead employers reported a mismatch between the skills, experience and workplace readiness that young people possess and those expected in entry-level roles. The traditional mechanisms that helped young people secure their first jobs have become less effective over time.

The case for

Labour policies such as minimum wage rises have made young workers less attractive to employers. This has driven up youth joblessness since the party took office in 2024. With vacancies at their lowest level in more than a decade according to the latest ONS labour market data, employers are less willing to take on younger staff facing higher wage costs. The result is a steady rise in the unemployment rate for 16-24 year olds that now stands at 16.2 percent. Comparable wage interventions elsewhere have shown similar effects on entry-level hiring when not paired with sufficient support for first jobs.

The case against

The rise in youth unemployment began before Labour took office in 2024 and stems from long-term skills gaps, post-pandemic effects and fewer starter jobs. The Milburn review published in July 2026 found that rising youth unemployment was not only about weakened demand but also a reduced ability of the labour market to support young people into work. It argued the traditional mechanisms that helped young people secure their first jobs has become less effective over time, with employers reporting a mismatch between the skills, experience and workplace readiness that young people possess and those expected in entry-level roles. The Starmer government had argued the increase in young people who are NEET is driven by increases in youth unemployment and a longer-term increase in the proportion of young people who are economically inactive. NEET numbers now exceed one million and vacancies have fallen to their lowest level in normal times in more than a decade according to the latest ONS labour market data.

Why it matters now

If the referendum finds Labour responsible, pressure will grow for immediate changes to wage and employment policies before the next fiscal event. A finding that the rise is rooted in pre-2024 trends would allow the government to focus on the Milburn review recommendations around workplace readiness. The independent review's interim report in July 2026 has already set the timetable for further policy responses on youth inactivity. Either outcome will shape how the government addresses the fact that the UK rate is now among the highest in Europe.

Further reading

UK Parliament · lancaster.ac.uk

Have your say

This is a live referendum on refnation. Cast your vote →

Want to follow more questions like this? Sign in or create an account.