Official figures published on Thursday showed that the number of British young people not in employment, education or training (NEET) fell below 1 million in the second quarter of 2026. That came after the figure hit its highest level since 2013 in the first three months of the year.
Since the COVID-19 pandemic, the share of 16 to 24-year-olds outside the job market or education has climbed to one of the highest in Europe.
The Office for National Statistics counted 981,000 people aged 16 to 24 as NEET in the April to June period. That was down from 1.011 million in the first quarter and represented 13.0% of the age group, compared with 13.5% previously.
"These latest figures underline why we are addressing youth inactivity as a priority," work and pensions minister Pat McFadden said, highlighting new work experience placements for the long-term unemployed.
The government has previously said it may limit increases to the minimum wage for 18 to 20-year-olds.
In May, a report by former minister Alan Milburn warned of the risk of a "lost generation" of NEETs who could make up one in six of the age group within five years.
Milburn's report blamed the welfare system for "exacerbating inactivity". It also highlighted a sharp drop in the number of low- and medium-skilled entry-level jobs, including part-time Saturday jobs for schoolchildren, despite a buoyant broader labour market for much of the past decade.
Thursday's data showed the number of NEETs increased by 30,000 over the past year.
A survey by Lancaster University's Work Foundation earlier this week found that almost half of medium and larger firms had fewer vacancies for young people than a year ago, partly because of broader use of artificial intelligence and automation.
The Confederation of British Industry said higher employment taxes had reduced firms' overall willingness to hire, despite exemptions for some younger workers.
Reporting by David Milliken; Editing by William Schomberg
