Back to Headlines
Economy
Jun 12, 2026
Analyzed by GPT OSS 120B

Record Number of Young People Fear Long‑Term Unemployment in England

AI Summary
A new IPPR report shows a historic rise in anxiety about long‑term unemployment among England’s 16‑21 year‑olds, with confidence in future success plummeting. The findings highlight a surge in NEETs and prompt a £2.5 bn government response aimed at reversing a potential “lost generation.”

Record Youth Unemployment Anxiety Hits England

Young people in England are losing faith in their futures, with a record proportion now fearing long‑term unemployment, according to a new Institute for Public Policy Research (IPPR) report.

IPPR Report Shows Confidence Plunge Among 16‑21 Year‑Olds

The IPPR analysis of Office for National Statistics data finds that 16‑ to 21‑year‑olds are significantly less confident about future success than a decade ago. Ellie Harris, head of children and young people at IPPR, says the “deal no longer adds up” for many.

Numbers Reveal Tripling of Long‑Term Unemployment Fears

  • Only 2% of 16‑21‑year‑olds rated their chance of success at 20% or less in 2015‑17, rising to 6% in 2023‑25.
  • Those who believed they faced an 80%+ chance of long‑term unemployment grew from 2% to 7% over the same period.
  • NEETs (16‑24 not in education, employment or training) exceeded 1 million for the first time in a decade.
  • Projected NEET count could reach 1.25 million by 2030 – a 25% rise.

Economic and Social Ripple Effects of a “Lost Generation”

The report warns that falling confidence could dampen study, work effort, and savings, harming economic productivity. Mental‑health strain is evident, with up to 40% of women and 30% of men aged 16‑24 reporting poor mental health.

Policymakers, including former Labour minister Alan Milburn, are reviewing interventions, and the government has pledged a £2.5 bn youth employment support package and expansion of youth hubs.

Policy Paths and Outlook for 2027‑2030

Upcoming measures may include stricter social‑media rules for under‑16s and targeted benefits reforms. If effective, the trajectory could reverse the confidence decline; if not, the “lost generation” risk intensifies, potentially widening the skills gap and slowing economic growth.