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Far too many young people in the UK are currently not in employment, education or training (NEET): an estimated 900,000 young people aged 16-24, equivalent to one in eight (12.6%) of all young people. This is the highest rate since 2015.
The new government should make addressing this challenge a high priority, because missing out on employment, education or training at a young age can result in serious adverse consequences. Research has shown that it harms young people’s skill levels and physical and mental health in the short term, and has a long-term negative impact on people’s earnings, employment prospects, job satisfaction and health over 20 years later.
It also has a serious economic impact: research by PwC and Youth Futures Foundation has shown that UK GDP would increase by £38 billion if the UK reduced the proportion of young people who are NEET to match Germany.
There are indications that the new government recognises the importance of this issue. At a Demos event earlier this year, Liz Kendall, then Shadow Secretary of State for Work and Pensions, spoke about Labour’s plans to reduce the proportion of young people who are NEET, saying that “being unemployed or lacking basic qualifications when you’re young can harm your job prospects and wages for the rest of your life – this isn’t good enough for young people or for our country.” In their manifesto, Labour included the following commitment: “Drawing together existing funding and entitlements, Labour will establish a youth guarantee of access to training, an apprenticeship, or support to find work for all 18- to 21-year-olds, to bring down the number of young people who are not learning or earning.”
In this research and policy project, we have explored the existing Youth Employment Hubs programme, which is run by the Department for Work and Pensions, in partnerships with Local Authorities, charities, training providers and other local organisations. Since 2020, it has been providing employment support, alongside other support services, to young people.
In what is the first major research report to be published on Youth Employment Hubs, we explore what young people and staff think about the Hubs, how well the initiative has gone so far, and how the Hubs could be further improved in the future.We argue that these Hubs should be a central element of Labour’s plan to deliver the Youth Guarantee in order to reduce the number of young people who are NEET.