Number of UK young people not in work or education drops under 1 million

LONDON, Aug 27 (Reuters) - The number of British young people not in employment, education or training (NEET) fell below 1 million in the second quarter of 2026 after hitting its highest since 2013 in the first three months of the year, official figures showed on Thursday.

Since the COVID-19 pandemic, the proportion of 16-24 year-olds outside the job market or education has risen to one of the highest in Europe.

The Office for National Statistics counted 981,000 people aged 16-24 as NEET in the April-to-June period, down from 1.011 million in the first quarter and representing 13.0% of the age group, down from 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 indicated it may limit increases to the minimum wage for 18-20 year-olds.

A report by former minister Alan Milburn warned in May 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". But 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 buoyancy in the broader labour market for much of the past decade.

Thursday's data showed the number of NEETs increased by 30,000 in the past year.

A survey by Lancaster University's Work Foundation earlier this week found almost half of medium and larger firms had fewer vacancies for young people than a year ago, partly due to 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 MillikenEditing by William Schomberg)