18th February 2026
Yes there is a strong signal that young people in the UK are struggling more in the labour market than usual.
According to the latest figures, the youth unemployment rate (among 16 to 24-year-olds) has climbed sharply and recently hit around 16.1%, its highest level outside the COVID-19 period in more than a decade.
That means about one in six young people actively seeking work couldn't find it at the end of 2025 — a much higher rate than the overall jobless rate.
This extended weakness is widely reported as part of a worsening jobs situation for young people, with youth unemployment now higher than the average in the European Union — a notable shift.
Broad Indicators of Weak Youth Labour Market Outcomes
Beyond headline unemployment, other measures suggest the problem goes deeper:
Almost one million young people aged 16-24 are classified as NEET (Not in Education, Employment or Training), a level that has risen to the highest in about a decade. Long-term NEET status is often linked with poorer long-run job prospects and higher risk of inactivity.
Independent analyses (e.g., by PwC) suggest that youth employment rates fell relative to other advanced economies in recent years, and that the UK's labour market performance for young people has worsened compared with peers.
Many young people report poor experiences entering the labour market — including difficulty finding entry-level jobs, stiff competition, and lack of support in securing training or apprenticeships. Polls show a majority of young workers feel there isn’t enough support to transition into decent jobs.
Structural and Economic Factors
Several economic and structural issues are contributing to the challenge:
Entry-level job creation has lagged relative to the number of young jobseekers, particularly in sectors like retail, hospitality, and leisure — traditional starting points for many young workers.
Employer cost pressures, including higher national insurance costs and increases in the minimum wage, may have discouraged hiring at the lower end of the pay scale.
The broader jobs market has cooled, with overall unemployment rising to multi-year highs and wage growth slowing. In such conditions, young people — often with less experience and fewer networks — are usually hit hardest.
Long-Term Implications
Economists and social policy experts warn that prolonged youth joblessness can have lasting "scarring" effects:
Periods of early labour market inactivity are associated with lower future wages and reduced employment prospects over a young person’s career.
High NEET rates and unemployment among young people can drag on national economic output — with some studies estimating potential GDP losses in the tens of billions each year if youth labour market engagement doesn’t improve.
Not Just a Short-Term Blip
While some cyclical components (weaker overall economy, rate expectations) play a role, many indicators point to structural weaknesses that precede short-term economic cycles. The combination of weak entry-level opportunities, rising inactivity, and sustained high NEET figures suggests that this is more than a fleeting downturn in youth hiring.
Policy Response and Debate
There’s increasing pressure from business groups, charities and politicians for targeted action. Proposals include:
Enhanced youth employment support schemes, including guaranteed work placements and training opportunities.
Re-evaluation of minimum wage policies and incentives for employers to hire and train young workers.
Parliamentary inquiries and cross-party efforts to understand and address barriers to youth employment.
So yes there is strong evidence that the UK is experiencing a youth jobs crisis.
Young people are losing ground in the labour market relative to older workers, NEET rates are high, and unemployment among 16-24-year-olds is near decade-high levels.
This pattern reflects a combination of cyclical weakness (slowing economy) and structural challenges (entry-level job shortages, skilling gaps, employer costs).
The effects are not just short-term but have the potential to affect career trajectories and economic growth unless addressed through targeted policy and labour market reforms.