ONS November NEETs Review: 13.2% of all Young People are Currently NEETs | Sector Reaction

• Nearly 1 million (946,000) young people currently classified as NEET
• Young men hit hardest at 15.1% compared to 11.2% of women
• Significant increase from same period last year
• 18-24 age group showing concerning trend with 15.6% rate
• Over half (552,000) are economically inactive – neither working nor seeking work

Nearly 1 Million Young People Now Classified as NEET, Latest Figures Show

The latest figures released today by the Office for National Statistics (ONS) paint a concerning picture of youth unemployment in the UK, with a significant increase in the number of young people not in education, employment, or training (NEET). According to the data covering July to September 2024, an estimated 946,000 young people aged 16-24 were classified as NEET, marking a substantial rise from the same period last year.

Gender Gap Widens

The statistics reveal that 13.2% of all young people in the UK currently fall into the NEET category, with a notable gender disparity emerging in the data. Young men appear to be particularly affected by this trend, with 15.1% classified as NEET compared to 11.2% of young women. In absolute numbers, this translates to 550,000 young men and 397,000 young women, highlighting a significant gender gap in youth engagement with education and employment.

Young Adults Hit Hardest

The situation appears especially challenging for the 18-24 age group, with 869,000 individuals in this category and a NEET rate of 15.6%. This represents increases both quarter-on-quarter and year-on-year, suggesting a deteriorating situation for young adults in particular.

Breaking Down the Numbers

A deeper analysis of the figures reveals two distinct groups within the NEET population. Approximately 395,000 young people are classified as unemployed NEETs, actively seeking work but unable to find it. Of these, 260,000 are young men and 134,000 are young women. The remaining 552,000 are considered economically inactive, meaning they are neither working nor actively seeking employment, with this group comprising 289,000 young men and 262,000 young women.

Economic Inactivity: A Growing Concern

The economic inactivity figures represent a particular concern for policymakers, as they indicate a significant number of young people who have become disconnected from both the education system and the labor market. While the number of economically inactive NEETs has decreased compared to the previous year, the increase in unemployed NEETs suggests growing difficulties in finding work even among those actively seeking it.

These statistics come at a time of broader economic uncertainty, raising questions about the effectiveness of current youth employment initiatives and educational opportunities. The challenges facing young people in transitioning from education to employment appear to be growing more complex, with traditional pathways becoming less certain.

Data Quality and Context

The ONS has noted that while these figures should be treated with some caution due to sampling variations in the Labour Force Survey, they should be considered alongside other labor market indicators for a complete picture of youth employment trends. The organization recommends using these statistics in conjunction with other metrics such as Workforce Jobs (WFJ), Claimant Count data, and Pay As You Earn (PAYE) Real Time Information estimates.

Looking Ahead

Looking ahead, the next update on NEET statistics is scheduled for February 27, 2025, when authorities will be better positioned to assess whether this represents a temporary fluctuation or signals a more concerning long-term trend in youth employment and education participation. The current data, however, suggests that immediate attention may be needed to address the growing number of young people finding themselves disconnected from both educational and employment opportunities.

Broader Implications

The rise in NEET numbers poses significant challenges not only for the affected young people but also for the broader economy and society. It highlights the need for targeted interventions and policy measures to ensure that young people have access to appropriate education, training, and employment opportunities as they navigate their way into adulthood and the workforce.

Check out our live stream discussing NEET rates

Sector Reaction

Dr Andrea Barry, Principal Economist at Youth Futures Foundation, comments:

“It’s worrying to see that 13.2% of young people across the country are out of work or education, rising from 12.2% last quarter. Today’s ONS statistics reveal that the number of young people who are not in employment, education or training (NEET) is still on the rise, with 946,000 not earning or learning.

“The concerning rise in NEET rates, particularly among young men, is a serious issue that demands immediate attention, as the data reveals a stark 15.1% of young men across UK are out of work or training.

“The ongoing unemployment crisis has left hundreds of thousands of young people experiencing the scarring effects of being left out of opportunities to earn or learn at a young age, damaging their future prospects.

“If we could reach the participation rates in the Netherlands which are the best in the OECD we could add £69Bn to our GDP and see over 500,000 more young people in work”

Stephen Evans, chief executive at Learning and Work Institute (L&W), said:

“The number of young people not in education, employment or training is estimated to be at its highest level in a decade. The number of NEETs has risen by 150,000 since the pandemic, a 20% rise. Problems with the Labour Force Survey mean we should be cautious in interpreting the data, but it is clear too many young people are not in work or education. We urgently need to tackle this to prevent long-term damage to young people’s career prospects. The Government’s upcoming Youth Guarantee needs to include a step change in apprenticeships, education and help to find work.”

Richard Hamer, Education and Skills Director at BAE Systems, said:

“It’s concerning that the number of young people not in employment, education, or training (NEETs) has risen yet again. This is not just an issue for the next generation of talent but for all of the major nationwide industries facing skills shortages.

“We need to better educate young people on the different opportunities available to them. Our own research shows that awareness of alternative career routes for young people is worryingly low, with just 6% of 18-24 year-olds in the UK knowing what an apprenticeship is.

“Apprenticeships are a great way for young people to earn while they learn as they remain financially secure whilst gaining a trade crucial to national workforce requirements. Industry and government need to work together to show there is no ‘one size fits all’ pathway to a career and help us take a step in tempering the rising number of NEETs, tackling economic inactivity on a broader scale.”

Russell Hobby, CEO of Teach First, said: 

“With 13.2% of young people not in education, employment or training, we’re witnessing the erosion of their futures before our eyes. We know that the proportion of these young people from disadvantaged backgrounds remains unacceptably high, as unequal opportunities early on shut the door on future careers.  

A brilliant education is the key to cracking this – empowering young people to pursue their dreams and fuelling national growth with a highly skilled workforce. That’s why the government must weight school funding towards the pupils who need it most, providing the support and opportunities necessary to ensure every child can succeed, no matter their background.”

Stephen Greene CBE, Director of UK Year of Service, said:

“We are at a pivotal moment when it comes to the future of young people in the UK, and these figures are a visceral reminder of the work that still needs to be done. The one million young people not in employment, education, or training represent a swathe of ambition and potential that needs to be supported and nurtured, not stifled and forgotten. If we get it right, this group will play a central role in the country’s future and lead us towards more prosperous times. Doing this requires a truly collaborative effort, between government and business, to develop a diverse range of avenues that young people can choose to follow in pursuit of their goals. It needs to be the opposite of a one-size-fits all approach, one that accounts for the unique nature of an individual and what they can offer and allows the next generation to be the engine of a thriving and productive nation.”

TUC General Secretary Paul Nowak said:

“Every young person needs a good start to their working life, to set them on a path of opportunity and security. But what we are seeing today is that young people are paying the price of the Tory’s toxic economic legacy. 

“We need to act now. Extended periods of unemployment can severely affect the long-term career prospects and financial stability of young people. Young people up and down the country are facing the same cost of living crisis as everybody else. So long periods without earning have the very real potential to push more into poverty.

“We welcome Labour’s youth guarantee commitment. It is vital that these plans offer young people good qualitytraining and access to decent, paid work.”