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ANALYSIS
20 OCT 2026
Economy · Youth jobs

Burnham pivots to youth jobs, but most NEETs are not looking for work

The prime minister says benefits should be a “backstop” for the 981,000 young people outside work and education. Three in five of them are not job-hunting, and the schemes costed so far reach thousands a year.

981,000
16–24s not in work, education or training, April–June 20261
60%
of them are economically inactive, not looking for work1
13.0%
of all 16–24s, up 0.2 points on a year earlier1
What happened

The government makes jobs, not payments, the first answer

Andy Burnham has made the near-million young people who are neither working nor studying the centrepiece of his welfare overhaul. Writing in The Times on 19 October, the prime minister called the situation “an economic catastrophe and a moral failure” and promised that “benefits will become the backstop, not the starting point”.8 The same day Stonegate, Fuller’s and Mitchells & Butlers joined a government-backed pledge of 100,000 paid hospitality jobs for 18- to 24-year-olds over three years.9

The people at issue are known as NEETs. The Office for National Statistics (ONS) counted 981,000 of them aged 16 to 24 in April to June, 13.0% of the age group and 30,000 more than a year earlier.1 The count had passed a million in January to March for the first time in over a decade, so the latest quarter is a dip from a peak.46

Exhibit 01
The NEET count passed a million in early 2026, then slipped back
Source: ONS, seasonally adjusted, UK, ages 16–24. The January–March figure is as first published; the ONS has since described April–June as 30,000 lower than that quarter. The ONS warns that survey estimates for groups this small are volatile and that short-term changes should be read with caution.146
Why it happened

Several pressures at once: weak hiring, ill health and thin vocational routes

No single cause is on the record, and the sources weigh them differently. Burnham pointed to the pandemic years, social media, a schooling system focused on the “university route” and too few opportunities.8 The Resolution Foundation, an independent think tank, names four drivers: rising ill health, weak vocational education, a hands-off benefits system and a weak labour market. It ties the recent rise to the last and to worsening mental health, and says the UK’s gap with other countries is mostly about education. Only Romania has a higher NEET rate among the EU’s 27 members.4

The government’s review by Alan Milburn, a former health secretary, reached a similar diagnosis in an interim report on 28 May. It found that six in ten NEETs have never had a job, against four in ten in 2005, that work-limiting health conditions are a growing factor, and that without action the number could reach 1.25 million within five years.567 It also found that 84% of the NEETs surveyed want a job or training, which Milburn used to rebut a “workshy” reading of the problem.7 Labour demand is weak at the entry level: vacancies across the economy fell to 702,000 in the three months to August, and youth unemployment of 16.4% is the joint-highest in more than a decade, by Indeed’s reading of ONS data.210

Who it affects

Most NEETs are outside the labour market, so a jobs offer is only half the answer

Of the 981,000, 393,000 are unemployed, meaning they are looking and available for work. The other 588,000, about 60%, are economically inactive: not looking for work, a group Milburn’s review links heavily to ill health.61 Young men account for most of the rise over the year, and for 252,000 of the unemployed.1

Exhibit 02
Women outnumber men among the inactive; men outnumber women among the unemployed
Source: ONS, April–June 2026, UK, seasonally adjusted, ages 16–24. “Unemployed” means without work but looking and available; “inactive” means not looking.1

That split matters for how far a jobs drive can reach. A wage subsidy or a placement works on someone who is searching; for the inactive majority, Milburn’s review and the Resolution Foundation both put health and the benefits system at the centre, which the plan’s mental health support and shift away from benefits are meant to address.469 The scale gap is wide. The hospitality pledge works out at about 33,000 jobs a year, roughly 3% of the NEET population, and not all will go to people who are currently NEET. The Resolution Foundation estimates the Youth Jobs Grant adds about 2,800 jobs a year and the Jobs Guarantee, which offers six months of paid work to long-term Universal Credit claimants, about 17,500.3

Where it’s contested

Employers want tax relief; the evidence favours targeted grants

Julia Lopez, the Conservatives’ shadow business secretary, called the government’s youth jobs record a “disaster” and blamed tax rises and red tape for limiting hiring.8 UKHospitality says the sector lost 100,000 jobs in two years and wants the employer National Insurance threshold for hospitality raised to £10,000 by the end of the parliament; it warns that youth hiring is at risk without help in the Budget.9 Industry bodies Make UK and the Recruitment and Employment Confederation also link youth hiring to National Insurance and wage costs.7

The Resolution Foundation tested that case and rejected it for the young. Restoring the under-25 employer National Insurance threshold to its 2024 level would add just over 7,000 jobs a year at about £137,000 each, it estimates; the grant costs about a quarter as much per job. “Cutting employer NICs is not the answer,” said its research director, Lindsay Judge.3 The same report found that holding back increases in the youth minimum wage might add about 15,000 jobs but cost young workers £379m in pay, and recommended a pause anyway.3 This is an empirical dispute, but the foundation’s figures are modelled estimates, not outcomes.

Exhibit 03
Targeted grants cost far less per extra job than a National Insurance cut
Source: Resolution Foundation, Take a chance on me, 29 June 2026; modelled estimates of net additional jobs, not observed results. The report puts the Jobs Guarantee, which it expects to add 17,500 jobs a year, at a cost per job similar to the grant, and gives no separate figure.3

The government’s position, from Work and Pensions Secretary Pat McFadden after the Milburn interim report, is that it is already acting through the Youth Jobs Grant and 500,000 opportunities.7

What we don’t know

The cost, eligibility and start date of the new schemes have not been published, so none of the Resolution Foundation’s figures can be applied to them. It is not known how many of the 100,000 hospitality jobs will go to people who are currently NEET. Milburn’s final recommendations are still to come.

Caveat. The NEET count comes from a survey, and the ONS says it is volatile. The rise on a year earlier (30,000) is small next to the quarter-to-quarter swings, and “inactive” does not mean unwilling: Milburn’s survey found 84% of NEETs want work or training.
What happens next

The Budget on 28 October is the first test of the money

Chancellor John Healey delivers his Budget on 28 October, where UKHospitality is seeking employment-cost relief and where any new money for youth schemes would be announced.9 Ministers were due to detail further youth apprenticeship and placement plans this week.8 Milburn’s full review is due in November, and Burnham has said he will take its recommendations seriously.8 The ONS updates its labour market figures today, 20 October, and its next quarterly NEET estimate, covering July to September, will show whether April–June’s dip was the start of a turn.2

Method. NEET means a person aged 16 to 24 not in education, employment or training; the ONS counts UK residents from the Labour Force Survey, seasonally adjusted. The April–June 2026 figures (981,000; 393,000 unemployed; 588,000 inactive; 530,000 men; 451,000 women) are transcribed from the ONS bulletin and the components re-added in code to equal the totals; 60% and 40% are the computed shares (59.9% and 40.1%). The January–March count (1,012,000) and the October–December count (957,000) are the figures quoted at publication by the Resolution Foundation and People Management; the ONS bulletin describes April–June as 30,000 lower than January–March, so that quarter has been revised slightly. Hospitality jobs per year (about 33,000) is 100,000 divided by three, shown against 981,000. The Milburn Review’s interim findings are taken from press coverage and the government’s publication page; the report was not read in full. The Resolution Foundation’s National Insurance cost per job (£137,000) is its corrected figure; earlier coverage gave £132,000. The 20 October ONS labour market release could not be retrieved when this was written, so labour market figures are those of 15 September. The 16.4% youth unemployment rate is Indeed Hiring Lab’s reading of ONS data. Retrieved 20 October 2026.
Sources. Numbered, highest tier first.
  1. T1Office for National Statistics, Young people not in education, employment or training (NEET), UK, 27 August 2026. Retrieved 20 October 2026.
  2. T1Office for National Statistics, Labour market overview, UK: September 2026, 15 September 2026. Retrieved 20 October 2026.
  3. T2Resolution Foundation, Take a chance on me, 29 June 2026. Retrieved 20 October 2026.
  4. T2Resolution Foundation, Press release on the NEET milestone, 28 May 2026. Retrieved 20 October 2026.
  5. T1Government publication, Young people and work: interim report (Milburn Review), 28 May 2026. Date and scope only; figures from the coverage below. Retrieved 20 October 2026.
  6. T3People Management, Milburn review warns of ‘lost generation’. For interim-report findings and ONS January–March figures. Retrieved 20 October 2026.
  7. T3FE News, Milburn interim review warns of ‘generational fault line’. For findings, the 84% survey result and named reactions. Retrieved 20 October 2026.
  8. T3Press Association, Burnham says youth employment and training crisis is a ‘moral failure’, 19 October 2026. For Burnham’s Times article, reactions and dates. Retrieved 20 October 2026.
  9. T3The Morning Advertiser, Burnham vows welfare system overhaul to help young people into work, 19 October 2026. For the hospitality pledge and UKHospitality’s position. Retrieved 20 October 2026.
  10. T3Indeed Hiring Lab, UK employment figures, September 2026, 15 September 2026. Retrieved 20 October 2026.
Production. Researched, written and checked by an AI system working to the Noodle News standards; edited and published by the Noodle News editor.
Corrections. None. Material corrections will be logged here with date.
Figures to 20 Oct 2026. Noodle News · v1.0 · burnham-youth-jobs-neet-inactive.