Young people "are caught in a perfect storm", says the author of a report on Neets – 16 to 24-year-olds not in employment, education or training
The report comes as the number of Neets rises to more than one million, the highest it's been in 12 years, and there are fewer entry-level jobs – key takeaways
"This is more than an economic crisis, it is a moral one," says Alan Milburn, whose findings suggest Neets cost the UK an estimated £125bn a year – BBC Verify crunches the numbers
Analysis: There are several months before the second half of the report, containing recommendations, is unveiled – but there may be enough already to spark action on a problem that can cause lifelong scars
Wondering how to stand out when applying for jobs? A careers adviser shares some tips
Holly, 24, says she's been applying for more than 50 jobs a week but is lucky to "even get a rejection email", while 23-year-old Luke says it's "humiliating" to have applications rejected – tell us your experience
Edited by Jenna Moon and Rorey Bosotti
Kris Bramwell
BBC News
Savanna Cumberbatch, 20, from Banbury in Oxfordshire has been unemployed for the last two years.
She says she currently receives £316.98 a month in Universal Credit, and has applied for around 70 jobs in the last year in libraries, retail and hospitality.
“The previous jobs I've had only lasted for about a month before the managers had to let me go," she says.
“Because they were hospitality based, extremely intense and fast-paced, they felt I couldn't keep up… I knew that fast-paced environments weren't working for me due to my autism," she adds.
Savanna says she has been working with a support worker and a work coach to help her apply for retail jobs, "but most lead to dead ends".
Meanwhile, Andy Wilkins, 26, in Southend-on-Sea in Essex has been out of work since leaving his last job six months ago.
He has used up £2,000 in savings on "rising bills" and receives £400 a month through Universal Credit.
He’s applied for entry level jobs at supermarkets, retail stores and fast food chains.
Wilkins, who spent four years studying Media and Communications at the University of East London, says: "The job market simply doesn't exist for my current industry. It's demoralising but equally damaging."
Paul Seddon
Politics reporter
Much of today's report focuses on areas within the control of government – such as education, health and the welfare system.
But Milburn is at pains to point out that longer-term trends in the economy have also worsened the employment prospects for young people.
A huge proportion of youth employment, he says, is in sectors such as retail, accommodation and food services, areas that have seen a decline in jobs both due to the pandemic and the rise of online shopping.
At the same time, he says that jobs in these sectors have become harder to access, with lower-level positions having become more complex and companies more likely to require prior experience, even for entry-level roles.
Although it is not a big part of the report, Milburn says the rise of artificial intelligence and automation are only likely to create further pressure at the bottom end of the labour market.
If you're currently unemployed, out of work, education or training, you can use the resources below to find support – scroll through for details on each country's services.
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By Ben Chu, policy and analysis correspondent, and Nicholas Barrett
The Milburn report notes that the cost and regulatory burden of employing young people has risen. The minimum wage, external for 21 to 24-year-olds has increased by 65% since 2019-2020 and currently stands at £12.71.
For 18 to 20-year-olds it has increased by 76% and is now £10.85. And for under-18s it is up by 84% to £8.
Chancellor Rachel Reeves also raised employers’ National Insurance Contributions (NICs) in her 2024 Budget which added to the cost to firms of employing workers.
Some have linked these factors, external to rising rates of young people not in education, employment or training.
However, a recent study by the Institute for Fiscal Studies (IFS), external concluded there is no clear evidence that higher minimum wages have been a “major driver” of young people becoming Neets.
The IFS also pointed out that most young adults aged 18–20 are largely exempt from employer NICs, external.
It also notes that the decline in employment among young people began at the end of 2022 – two years before the NICs changes were announced – so judges it unlikely to be the “primary cause” of increasing Neet rates.
Conservative leader Kemi Badenoch
We've been hearing reaction throughout the day from politicians around Westminster about today's report.
Here's what they've had to say:
Conservative Party leader Kemi Badenoch: "Labour entered government and hiked employers national insurance, hiked the minimum wage, loaded new regulations on businesses. The result? Employers stopped hiring young people"
Former Health Secretary Wes Streeting: "Essential reading from Alan Milburn today … Opportunity for young people must be a national cause."
Reform UK's education spokesperson Suella Braverman: "Nearly a million young people not in work or education is a damning indictment of Labour policies which have crushed employers and made it easier for people to claim welfare than do a hard day’s work"
Liberal Democrat Treasury spokesperson Daisy Cooper: "An entire generation of young people are seeing their hopes and dreams ripped away, just as they enter what is meant to be the best years of their life. Labour can not claim they were not warned."
The Green Party: "A parliamentary inquiry found 93% of student loan borrowers find repayment terms unreasonable. Education shouldn't mean decades of debt. The Green Party would scrap tuition fees entirely"
Former Prime Minister Rishi Sunak: "Too many young people are finding the first rung of the jobs ladder further and further out of reach."
Green Party Leader, Zack Polanski
The report criticises the welfare system as having "badly designed incentives that deter participation and encourage benefit passivity".
This failure, it says, plays out in six ways:
Emma Tracey
Senior disability reporter
Milburn makes clear that disabled people who cannot work should be supported by the benefits system, but describes the disability Neet gap as “devastating".
He quotes recent figures showing that in 2024/2025, 29.6% of disabled young people were Neet in the UK compared with 8.7% of non-disabled peers. That’s a gap of 20.9 percentage points, which has barely changed in over a decade.
Young disabled people described to him “almost without exception, systems that were not built for them".
One autistic person shared that during an internship, they “really, really struggled with my neurodivergence there because it was not an environment that was made for people who are neurodivergent".
Responding to the report, Abdi Mohamed, head of policy, research and influencing at disability equality charity Scope, says: “This report finally exposes how young disabled people in the UK have been failed on an unforgivable scale.
“The Milburn Review now needs to develop bold recommendations with young disabled people, and the government must back them with the right support to fulfil their ambitions.”
Alan Milburn has been speaking to the BBC following his news conference, and says "these problems go back decades".
"We have got to stop saying: 'Here is the answer, here is the magic silver bullet.' It's not a silver bullet you need. It's a round of ammunition.
"If you have not had a job by the time you are 24, you are probably not going to have a job by the time you are 34," he adds. "It just gets worse and worse."
He says he's never seen an issue that resonates so strongly with the public in the decades he has spent working in politics and policy.
Rozina Sini
BBC News
Holly Jackson, 24, has been applying to over 50 jobs a week but is struggling to find work.
The 24-year-old who lives in Seaford says she was offered very little career advice when she left university in 2023 and it's been "almost impossible to find a job" since.
"I’m lucky if I even get a rejection email," she says, explaining it feels like "luck of the draw more than anything".
"Employers don’t want to train people anymore, and apprenticeship schemes are asking for three plus years experience."
She adds that it feels like "you're not a real person you're just a number".
Despite having six years of job experience Katie, 24, also describes how it has been "extremely difficult to find a job".
Katie says she has been waiting for an opportunity at two local hospitals near where she lives in Telford but she has been rejected from around 10 different NHS roles.
"I've applied for everything, from cleaning to office work, and just this morning I got a email from one application saying they aren't going to take my application further," she explains.
She says she has had one interview out of 30 job applications.
"I know six young people in my family that are actively seeking employment opportunity in my area and it's extremely upsetting knowing they have very little chance of finding employment," she adds.
Josh McLaughlin
South East
Emily Huns, head of careers and entrepreneurship at the University of Sussex, advises young people to submit "fewer high-quality, authentic applications" rather than "identical, poorly researched" ones.
"[Employers] don't want an AI-generated version of job applicants," she tells the BBC. "Human-centric skills are in demand in the workplace."
She says she has also noticed "household name employers" getting more applications than small and medium-sized ones who "struggle to find talent".
Huns says her university has created a "menu of programmes" to connect students and graduates to them.
If you're a parent, BBC Bitesize has some tips on what you can do to help your teenager find work.
They're provided by writer, educationalist and former headteacher Peter Hyman, who has co-authored a report that feeds into Milburn's wider report being published today:
Read more from BBC Bitesize on how to help your teenager find work.
By Daniel Wainwright
An estimated 61.6% of young people who are not in employment, education or training – Neets – have never had any paid work.
Data released as part of Alan Milburn’s review of the issues , externalaffecting 16 to 24-year-olds suggests this number has been growing over the past two decades. Before 2013, fewer than half of young people in this situation had never worked.
The report says how what is “often described as the decline of the Saturday job” is part of a change involving fewer flexible jobs and part-time work that young people could do while studying to gain experience and employer references they may need later on.
And it talks of jobs that disappeared because the economy changed – such as fewer young people delivering newspapers. But it also points to changes in the rules around hiring people, “which have made casual roles less attractive to offer”.
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Emily Holt
Education reporter
Young people are feeling "shut out of the opportunities that work can bring", which is impacting young people's mental health, a leading UK employment and social action charity says.
Shaw Trust says: "Unemployment is taking its toll on young people's mental health and there's a lot of evidence to back this up. We're also seeing this on the front line: young people are telling us that without work, days lack structure and meaning.
"They're feeling shut out of the opportunities that work can bring. This would influence anybody, but at this stage of life, confidence and wellbeing takes a real hit. We need to reframe the relationship between work and wellbeing.
"When young people feel shut out of the job market, the opposite is true. We need to back young people's potential. That means providing the right support to get them work-ready."
Tina McKenzie, policy chair of the Federation of Small Businesses, says that health policy should factor in “what ill-health means for a young person’s ability to work”.
She adds: "We should treat the condition and consider the knock-on effects on confidence, routine, and prospects. For many young people, work is as much a part of recovery and stability as any clinical intervention. Health policy designed with that in mind will do more good for more people."
Dan Woodland
Live reporter
Following the publication of his Neets report, former cabinet minister Alan Milburn spoke to the press to go over its contents. Here's a recap of what he said:
We'll continue to bring you live coverage and analysis, stick with us.
Following the release of Milburn's report on Neets, we've taken a look at the government's current policy for encouraging young people into work.
In the November Budget, Chancellor Rachel Reeves announced £820m of funding to support 18 to 21-year-olds into education or paid employment.
Those who have been Neet for more than 18 months were also to be given a six-month paid work placement. Anyone who refuses could risk being stripped of their benefits.
The chancellor added that the government would fund a scheme to make apprenticeship training for under-25s at small and medium businesses "completely free".
Association of Colleges head David Hughes said the money would enable colleges to support more young people so they do not end up not in education, employment or training.
But he said more money was needed for adult education funding, and to ensure "millions of adults are not left behind by the tech and green revolutions we are seeing before our eyes".
BBC Newsbeat
Niamh Heron is currently out of work.
The 21-year-old from North Yorkshire tells us she stopped working in September due to long-term poor health.
"I am currently looking for part-time work that isn’t too physical. I make crochet and cards and I sell them to a local gift shop," Niamh says.
"I sell crochet patterns on Etsy, I also am trying to get into UGC via TikTok and am interested in working in social media, just because it is so difficult to get a job."
Aaron Diangienda, currently at college studying for a level 2 sports diploma, is also out of work.
The 18-year-old from Brixton, south London has been looking for a job for a year and says he is keen to work in retail, but finding the right job has been tough.
Aaron doesn’t want to go university and while he is looking for a job in sports specifically, he would gladly take any job.
The teen is also re-taking his English and maths GCSE so he can improve his prospects.
You can listen live to Newsbeat's Neet coverage at the top of the page.BBC Newsbeat
BBC Newsbeat has been speaking to young people across the country today who are struggling with unemployment.
They've been speaking to people currently studying and applying to jobs, as well as those with degrees failing to find jobs.
You can listen live at the top of the page – as well as on Radio 1, Radio 1Xtra, Asian Network or catch up on BBC Sounds afterwards.
We've just heard from Alan Milburn following the release of his report into the number of young people who are Neet – not in employment, education or training, which he warns could rise to 1.25 million over the next five years.
Here's some of the key statistics we've pulled out from the report:
Milburn is asked how social media and smartphones have affected the issue.
He says the evidence is that "young people are living a different life today".
Milburn adds that disrupted sleep patterns, doomscrolling and being awake in the early hours seem to be having an impact.
He says distress, anxiety and depression among young people are rising and "we have to really, really look" at mental health seriously as an issue.
The news conference has now ended – we’ll bring you a recap of what we’ve just heard shortly.
The BBC asks Milburn if he is urging the government to rethink the increases in youth minimum wage and employee national insurance.
Milburn says there is "no doubt" employers are concerned about this, but many already pay more than the youth minimum wage, so the change has had a "minimal impact" on them.
He adds that things have become more difficult at the "margins".
"What we've got to do, as I say, is make sure that if we want to have more young people in work, then we've got to minimise the risks for the employer, we've got to maximise their incentives.
"But no one should pretend that the reason we've got the Neet problem today […] that somehow or other that was triggered two years ago."
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