Unlocking Opportunity: Why More Support For Young People Isn’t Enough To Solve The Crisis

The rising number of young people not in education, employment or training (NEET) is one of the most urgent social and economic challenges facing the UK, and we welcomed the opportunity to contribute to the review being led by Alan Milburn.

But while improving support for young people is crucial, it will not be enough to reverse current trends. In many sectors, the jobs that once provided a vital first step into the labour market have declined or disappeared. Unless support is matched by a strategy to expand opportunities, the NEET challenge risks deepening rather than diminishing.

Understanding the Barriers: A dual challenge for young people and employers

Young people today face a labour market very different from that encountered by previous generations. Economic pressures, technological change and a shrinking pool of entry level roles make it harder to find a foothold.

One major barrier is information. Too often, young people simply don’t know what jobs exist, what they involve or how to access them. This is especially true in technical and vocational sectors, from engineering to food production to utilities, where limited visibility suppresses attraction. Even in well-known areas such as health, young people are familiar with frontline roles but far less aware of the diverse entry level jobs that offer strong progression routes.

Meanwhile, employers, especially SMEs, face growing challenges in recruiting young people. Rising employment costs make it harder to take risks on inexperienced recruits, and many smaller businesses lack HR capacity to support young employees. Regulatory and insurance constraints can create further barriers, particularly in safety critical sectors.

Complexity across the skills system compounds these issues. Entry requirements, administrative burdens and changes to apprenticeship assessment risk reducing accessibility for young people and deterring employer engagement.

What will make a difference?

To tackle the NEET challenge effectively, policy must focus on three areas: improving young people’s readiness for work, supporting employers with recruitment, and increasing the availability of good quality entry level roles. We propose the following options.

Strengthen alternative pathways for 14–19 year olds

High quality technical and practical provision is essential for young people at risk of disengagement. Skills Federation members are at the forefront of developments, for example, Enginuity’s investment in training spaces that give young people a strong first step towards a career in welding and fabrication and illustrate the value of hands on learning.

Expand sector specific entry programmes

Programmes developed with sector skills bodies can offer clear routes into priority industries. Energy & Utility Skills, the sector skills body for the energy, water and waste industries, is working with DWP to deliver structured, sector designed pathways that help young people enter growth sectors. Participants will complete accredited safety training and employer-specific training, with guaranteed interviews at the end of the programme. These approaches should be scaled regionally and nationally.

Improve visibility through targeted attraction campaigns

Government should invest in national and sector specific campaigns across sectors including engineering, construction, logistics, digital, health and food and drink to transform awareness and challenge outdated perceptions. There are many examples to build on including ‘Not just labcoats’ led by Cogent Skills. Campaigns must sit alongside a new careers strategy with adequate funding at both national and regional levels.

Increase opportunities by reducing barriers for employers

If young people are to access work, employers must be able to offer it. Government should review regulation and insurance requirements that unintentionally restrict access. Government should also assess options to price young people back into the labour market. This could include reviewing the youth minimum wage, exploring further national insurance exemptions or providing wage subsidies or other financial incentives linked to training.

Provide greater support for HR for SMEs

Capacity to recruit and support young people effectively can be a challenge. More practical tools and resources provided by Strategic Authorities as part of their Youth Guarantee plans could support this as can toolkits provided by other organisations including the NHS.

A Moment of Opportunity

The NEET challenge is not inevitable. Solving it requires coordinated action: increasing opportunities within the labour market, removing barriers for employers and ensuring young people are equipped for the roles available. With the right strategy, the UK can revitalise its entry level labour market and ensure every young person has the chance to get in, get on and build a rewarding career.

By Alison Morris, Director of Policy, Skills Federation