Nearly one million young Britons are not in education, employment or training (Neet), while the number of under-25 migrant workers in the UK has surged more than fourfold since 2020, according to new research by the Centre for Social Justice (CSJ).
The report, published this week, found that 948,000 Britons aged 16 to 24 are now classified as Neets, almost 200,000 more than before the pandemic.
Over the same period, the number of UK nationals under 25 on company payrolls fell by 49,000.
In contrast, employment among non-EU migrants under 25 rose by 315 per cent between January 2020 and December 2023, with an additional 258,200 young foreign workers joining sectors such as retail and hospitality. Early data suggests that the figures for 2024–25 are likely to be proportionally higher.
‘Squeezed out’ of jobs
The CSJ argues that British youngsters are being “squeezed out” of the labour market by a combination of mass migration, rising payroll taxes, and growing reliance on benefits.
The think tank noted that one in eight young people is now a Neet, with over 250,000 of them economically inactive due to health issues. Claims for conditions such as anxiety and depression have risen sharply, with 128,000 young people citing these illnesses in 2023, an increase of 36,000 since the pandemic.
The report also highlighted a “hidden” group of Neets who are not in work or training but do not claim welfare, often relying instead on support from low-income parents.
Call for reform
To tackle the trend, the CSJ has proposed a new “future workforce credit,” a wage subsidy that would cover 30 per cent of a Neet’s salary for six months. The scheme, backed by former Labour home secretary Lord Blunkett and former Conservative chancellor Sir Jeremy Hunt, is projected to help 120,000 young people into work while generating £765 million in welfare savings and tax revenue.
Writing in The Telegraph, Lord Blunkett said the scale of today’s challenge is “incomparable” to the 250,000 Neets he faced as education secretary under Tony Blair in 1997. He warned that failing to act would leave “hundreds of thousands of young people exposed to the vagaries of ill-health, isolation and long-term unemployment.”
Sir Jeremy Hunt echoed those concerns, warning of “a lost generation of wasted potential” unless urgent steps are taken.
Migration and the labour market
The CSJ emphasised that the increase in young migrant workers was concentrated in low-skilled roles, suggesting that employers were not filling shortages of highly qualified staff but instead preferring overseas recruits for jobs typically taken by British school-leavers.
The report urged the Government to ensure companies “look first to the domestic workforce” before sponsoring visa applications and to limit access to certain welfare benefits for young adults with less severe mental health conditions.
It also recommended delaying eligibility for Universal Credit until age 22, alongside reforms to sickness and disability benefits.
Political pressure
The findings come as Prime Minister Sir Keir Starmer faces mounting pressure over youth unemployment and the cost of welfare. The Treasury has warned that sickness benefit claims, with around 3,000 new claimants being added each day, could cost £100 billion annually by 2030 if left unchecked.
Lord Blunkett said ministers must seize the opportunity: “Nearly one million Neets is a daunting challenge. But it is also a profound opportunity. With the right support, they are a workforce waiting in the wings.”
