London, November 20, 2025
Nearly one million young people aged 16-24 in the UK and over 289 million globally are currently not in employment, education, or training, highlighting a worsening youth employment crisis driven by skill mismatches, economic pressures, and systemic barriers.
Scale of the Problem
In the UK, 987,000 young people are classified as NEET (Not in Employment, Education, or Training), with 600,000 disconnected for over a year and 300,000 for more than two years. Globally, approximately 21% of young people aged 15-24—about 289 million individuals—face similar challenges. Youth unemployment rates remain alarmingly high in several countries, including 17% in India, 16.5% in China, and a staggering 36% in Morocco. In the United States, youth unemployment peaked at 10.8% in July 2025, significantly outpacing overall jobless figures.
Economic and Social Consequences
Young people not engaged in work or education are more than 2.5 times as likely to experience poverty compared to their peers involved in employment or study. This risk escalates for those living independently, with poverty rates exceeding 60%. A primary driver is the skills gap: four in ten youths lack the necessary qualifications or experience for workforce entry, especially in digital competencies where only 44% receive comprehensive training. Educational attainment strongly influences employment prospects—40% of 22-24-year-olds without qualifications have never worked versus 5% of degree holders.
Structural and Systemic Challenges
The youth labor market suffers from what experts term a “broken marketplace.” Surveys indicate that 43% of young Americans perceive the education system as ineffective, and 45% find employment resources inadequate. Nearly half express concern about their preparedness for jobs transformed by artificial intelligence technology. The UK faces fierce competition, exemplified by 1.2 million graduates vying for fewer than 17,000 entry-level roles in 2024, intensifying barriers to meaningful employment.
Global Contributing Factors
Underlying this crisis are intertwined issues dubbed the “four Cs”: ongoing effects of the COVID-19 pandemic, geopolitical conflicts, climate change, and the rising cost of living. Additionally, three in ten young people confront severe limitations due to poor socioeconomic environments, while another three in ten lack access to sufficient support services for workforce integration. These factors deepen both economic hardship and psychological stress among youth worldwide.
Promising Developments and Policy Implications
Despite these challenges, there are signs of stabilization. The OECD’s average youth NEET rate in 2024 held steady around 14%, mirroring pre-pandemic levels of 2019. Italy notably reduced its NEET rate by eight percentage points since 2022, a success attributed in part to targeted interventions such as the NEET Working Plan. These examples underscore the potential impact of coordinated policies that align education with labor market demands and actively bridge skills gaps.
Ongoing youth unemployment remains a critical issue demanding urgent and collaborative responses from governments, educators, and businesses. Addressing structural mismatches and providing comprehensive support can foster pathways into sustainable employment, reducing poverty risk and improving long-term social outcomes for future generations.