Almost one million young people aged 16 to 24 were not in education, employment or training in the second quarter of 2026.
This is according to Office for National Statistics data, which found that the number of young people classified as NEET stood at 981,000 between April and June, up 30,000 on the year but down 30,000 on the previous quarter. The annual increase was largely driven by young men, whose numbers rose by 25,000, while the number of young women increased by 4,000.
A separate Department for Work and Pensions research found that 23 per cent of employers see young people’s health as a key barrier to hiring.
Among large employers, 21 per cent said they had hired young people with a mental health condition or cognitive impairment, while 15 per cent had hired young people with a physical health condition or impairment.
Standard Life Centre for the Future of Retirement director Catherine Foot says: “Today’s figures show that nearly one million young people are not in employment, education or training. The immediate impact on young people’s finances, career prospects and the wider economy is already being felt. However, the long-term repercussions for this generation’s financial security should also not be overlooked.
“Britain is facing a retirement savings crisis, with 15 million people currently under-saving for retirement*. A growing number of young people entering the workforce much later risks widening that savings gap in the future. While retirement will seem far away for most people in their early twenties, even a few years out of the workforce early on can mean thousands less in retirement.
“Standard Life analysis shows that an employee in their mid-20s earning £25,000 could lose out on over £5,000 in today’s terms at retirement age if starting work – and workplace pension contributions – just one year later. A delay of five years could mean losing out on as much as £24,715.
“Helping young people into good-quality work today is vital to protecting their financial security for decades to come.”
