Official statistics released today by the Office for National Statistics (ONS) show 1,012,000 young people in the UK are now not in education, employment, or training (NEET), a 2.8% percentage-point increase since before the pandemic.
New analysis from education and youth employment charity Impetus reveals this post-pandemic surge is now costing the UK economy £27bn in lost GDP every year.
Beyond the economic cost, high NEET levels have a long-term scarring impact on young people, with some groups disproportionately impacted:
- Spending time unemployed under the age of 23 has been linked to lower wages even two decades later.
- Those who are NEET at 18–19 are 20% more likely to be unemployed 10 years on.
- Young people from disadvantaged backgrounds are twice as likely to be NEET than their better-off peers, with qualifications only accounting for half the difference.
Certain demographic factors compound this risk. Previous Impetus research found that a young person from a disadvantaged background with low qualifications and special educational needs and disabilities is nearly three times more likely to be NEET.
However, strong educational qualifications are protective: every step up the qualifications ladder halves a young person’s chance of being NEET. For those furthest from the labour market, wraparound support, including access to mentoring and career coaching, is also essential.
Susannah Hardyman MBE, CEO of Impetus, said:
“Reaching more than one million young people who are neither earning nor learning is a national tragedy, and one that was not inevitable. Unless drastic action is taken, we are at risk of a whole generation being scarred by a lack of employment and education opportunities. For those young people who are furthest away from the world of work, and who are facing additional obstacles in the form of socioeconomic disadvantage, low qualifications and special educational needs, support needs to be offered at the earliest opportunity, starting in school.
"The Interim Milburn Review Report today will reveal not just the scale of the problem but the deeply troubling fact that a whole section of society is losing hope. We agree with his analysis that a multi-faceted approach is needed to ensure education, employment and training options work so every young person can succeed. With £27bn lost in GDP annually, and the NEET numbers only going in one direction, the Government has an imperative to act.”
Susannah Hardyman MBE, CEO, Impetus
For general media enquiries, please contact Nicola Robbins and Emily Dalton at press@impetus.org.uk or call 07774 437 701.
About the data:
The increase in NEET rate compared to before the pandemic is 2.8% pts. This is based on the NEET rate for Apr-Jun 2025 (15%) and the NEET rate for Oct-Dec 2019 (10.7%). Both figures are based on today’s NEET statistics release.
PWC’s Youth Employment Index 2022, has a GDP multiplier of 0.34 for every % point difference in NEET rates (page 95). Based on a UK GDP of £2,884bn (also ONS) this gives a cost of 0.34 x 2.6% x £2,884bn = £27bn
About the Youth Jobs Gap series:
Impetus’ Youth Jobs Gap series is a groundbreaking collection of reports investigating the link between education and employment outcomes. The latest Youth Jobs Gap report, published in May 2025, reveals how layers of disadvantage affect young people’s chances of not being in employment, education, or training (NEET).
Working with The National Institute of Economic and Social Research (NIESR), Impetus analysed the government’s Longitudinal Educational Outcomes dataset to explore how combinations of characteristics impact NEET rates compared to the average. For the first time it shows the links between socioeconomic background, level of qualification, identity characteristics and employment outcomes, giving us the clearest picture to date of the factors associated with employment outcomes for different groups of young people.
