A lost generation? How we can support young people into work

Supporting young people to find pathways to work is a different challenge from helping those already experienced in the labour market. In this blog, Ross Murray looks at the shifting policy landscape and what local areas must consider to help young people succeed.

Nearly one million young people in the UK are locked out of the economy. The latest Office for National Statistics data reveals that almost 950,000 16-24 year olds are not in education, employment, or training (NEET), which represents 12.7% of their entire age group. They face underlying challenges that are distinct from those facing older individuals trying to access the job market.

Why is more support needed?

Research consistently shows that prolonged NEET status harms young people’s future prospects, increasing the likelihood of long-term unemployment, low wages, and poor  health. Early workplace experiences build crucial skills like motivation, resilience, and confidence.

There has been a significant rise in young people becoming economically inactive due to long-term sickness, particularly resulting from mental health issues. This problem requires a joined-up approach between health and employment services, not just simple job-matching. Additionally, young people are entering a labour market being reshaped by AI and technological change, making it difficult to navigate career choices without guidance. Without support to build skills, confidence, and resilience, a growing number of young people risk being left behind.

Navigating the shifting national policy landscape

In 2024, the government launched the Get Britain Working White Paper, which included plans to boost youth employment and tackle economic inactivity. Central to this plan is a recognition that existing systems have "too often written off young people before their careers have begun”.

Key elements of this plan include an expansion of the Youth Guarantee Trailblazers.  This flagship initiative pledges that all 18 to 21-year-old NEET young people will be offered a place in education, training, apprenticeship, or employment within 12 months. Eight ‘Trailblazer’ pilot areas have received £45 million to develop innovative local delivery models.  These "trailblazer" areas plan to test innovative methods to coordinate existing support, engage young people, and overcome barriers like health challenges and lack of access to opportunities.

As well as intensified support for economically inactive people. The plan promised increased collaboration between Jobcentres, health providers, and local services. It aims to improve referral processes to tailored employment support programmes, especially for those with mental health issues.

Areas to focus on

While the barriers young people face are complex and multifaceted, there are three areas worth focusing on:

1. Intervening early and working across systems

Echoing the government’s second principle of public service reform, prevention is key. Where young people face barriers to work, spotting and supporting them early is crucial. A more joined-up approach is needed between schools, GPs, mental health services, and youth groups to identify and support those who are struggling before they disengage completely. These services can identify if a young person is struggling early and help signpost towards employment and education support alongside clinical care.  The Youth Engagement and Progression Framework in Wales provides a replicable example of an effective multi-agency model. It proactively supports young people at risk of disengagement and homelessness by enabling early identification of those in need and providing targeted interventions to improve their pathway into education, employment, or training.

The evidence also shows that particular groups of young people – for example, those who are care-experienced – benefit from tailored support to help prepare them for the world of work.

2. Engage and build partnerships with employers

Beyond government programmes, local authorities must actively engage employers, particularly small and medium-sized enterprises (SMEs). Employment services should work with businesses to demystify the process of hiring young people. Research undertaken in the East Midlands shows that employers are often hesitant, citing concerns that young people are not “job-ready” or confident that they can support their needs. Trailblazer projects in the West Midlands are tackling this by working with employers such as the NHS to increase the number of paid work placements, through subsidised work experience and intern opportunities. In Solihull, a small grants programme targets SMEs with placement support and a small amount of financial aid.

Employment support services need to engage more with employers to enable them to see the benefits of providing opportunities to young people.

3. Supporting parents as well as young people

   
   

Many young people who are NEET are "hidden" from official statistics, as they don't claim benefits and live in their family home. Parents can be a vital part of the solution. They provide the stable home environment, financial assistance, and emotional backing that can prevent a young person from falling into a crisis.

But parents often feel too overwhelmed or ill-equipped to support their children through the transition to work and the issues they may face around mental health. By engaging parents directly through providing information, access to support networks, and professional guidance, services can find a unique way to reach and re-engage young people on the way to success.

The rising number of young people not in education, employment or training is a complex, multifaceted challenge.  By intervening early, building employer partnerships, supporting families, and integrating services, local areas can transform young people’s futures and strengthen the local economy. Meeting this challenge requires not only practical solutions but also compassion and belief in the potential of every young person.

To learn more about MV’s work on work, health and skills please contact Ross Murray ross.murray@mutualventures.co.uk.