03 May 2026
NEET rates driven by lack of jobs and poor health
A new report by the Resolution Foundation examines the drivers of the rise in NEET rates since 2019 and finds it is fairly evenly split between the impact of a weaker labour market and worsening health and incapacity.
The rate of 18-to-24-year-olds not in education, employment or training (NEET) declined throughout the 2010s but has risen from 13% in 2019 to 15% in 2025. While the increase in the past six years has raised concerns, the report finds that the starting rate in 2019 was already high by international standards.
The report aims to assess the key drivers of the increase since 2019 and identifies that just over half the rise is down to a weaker labour market, reducing the availability of work for young people.
The rest is mostly related to the growing number of young people who are unable to work due to poor mental or physical health, or a disability. While the number of young people receiving incapacity benefits has risen from 130,000 in 2019 to 200,000 in 2025, it is the rise in those requiring the highest level of support – with no requirement to work – that has jumped most. The report also shows that over half of young people who are NEET have multiple barriers to returning to education or entering work.
The report recommends investment in better health support in schools and colleges, especially for mental health issues. It also supports engaging young people in education for longer, through vocational pathways, ring-fencing at least two-thirds of the Growth and Skills Levy for under 25s, and reforming the employment support system for young people.
Read more about the Lost in Transition report.
The rate of 18-to-24-year-olds not in education, employment or training (NEET) declined throughout the 2010s but has risen from 13% in 2019 to 15% in 2025. While the increase in the past six years has raised concerns, the report finds that the starting rate in 2019 was already high by international standards.
The report aims to assess the key drivers of the increase since 2019 and identifies that just over half the rise is down to a weaker labour market, reducing the availability of work for young people.
The rest is mostly related to the growing number of young people who are unable to work due to poor mental or physical health, or a disability. While the number of young people receiving incapacity benefits has risen from 130,000 in 2019 to 200,000 in 2025, it is the rise in those requiring the highest level of support – with no requirement to work – that has jumped most. The report also shows that over half of young people who are NEET have multiple barriers to returning to education or entering work.
The report recommends investment in better health support in schools and colleges, especially for mental health issues. It also supports engaging young people in education for longer, through vocational pathways, ring-fencing at least two-thirds of the Growth and Skills Levy for under 25s, and reforming the employment support system for young people.
Read more about the Lost in Transition report.
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