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Stuart Gentle Publisher at Onrec

Youth Futures Foundation comments on the latest ONS labour market statistics

Labour market statistics

Abigail Coxon, Senior Economist at Youth Futures Foundation, comments:

"Today's labour market data from the ONS reveals that around 1 in 5 young people not in full-time education are economically inactive. An estimated 820,000 16-24-year-olds not in full-time education are neither in work nor actively seeking it; equivalent to an alarmingly high rate of 20.1%. This marks a sharp rise since 2021 as the UK emerged from the pandemic, when the rate stood at 15.7%, meaning around 250,000 more young people are now inactive. 

“Unlike after the 2008 financial crisis – when the majority of young people not in education or work were actively looking for jobs – the recent rise in NEET levels since 2021 is driven in part by growing rates of economic inactivity. Over the past three years, long-term sickness has been the primary driver of the increase in youth economic inactivity, with mental health conditions the most common cause related to ill health. 

“This week we launched our latest research report to understand the root causes of young people’s worsening mental health in England. This first-of-its-kind research, carried out by the University of Manchester and University College London, evaluates multiple potential drivers of worsening youth mental health, assessing the strength of evidence supporting each one and highlighting where important gaps remain. 

“We know that being out of work and education can have a scarring effect on young people even decades later, impacting their future prospects and wellbeing. The research further reinforces the need for mental health to be prioritised and for preventative solutions that bring together health services, education, employers, civil society and other stakeholders.”