Unemployment hits four-year high as insecure work locks a generation of young people out of stable jobs

Though still low by historical standards, UK unemployment is the highest it’s been in four years. But this headline figure hides a troubling picture for young people who are increasingly facing insecure work and weak prospects.

Nearly one in eight people aged 16–24 are now not in employment, education or training - the so called ‘NEETs’ – costing the UK economy an estimated £26 billion.

This is an increasing trend, as in the last three years the number of young people unemployed for more than six months increased by 124%.

Even those in work are facing increasingly insecure conditions. Previous ONS data shows younger workers tend to be concentrated in hospitality, retail and care - sectors characterised by low pay, variable hours and limited progression.

A zero-hours contract or a handful of weekly shifts counts as ‘employment’ in the statistics, but it doesn’t provide a stable income or a route to financial independence.

Benefits data reinforces this picture. Personal Independence Payment (PIP) claims among teenagers and young adults have risen sharply, largely driven by mental health conditions.

This April, 16.5% of claimants were aged 16-19, up from 14.6% in April 2019.

There has long been recognition that job insecurity is strongly associated with higher rates of anxiety and depression – with the current labour market a catalyst for poor mental health.

Compounding this problem, the latest statistics shows a contracting labour market. The UK used to have more jobs than jobseekers.

Now the ONS reports 2.5 unemployed people for every vacancy, and vacancies are down year-on-year. Rising competition means those without experience are less likely to be shortlisted for roles, again impacting young people looking for entry-level positions.

The recent Young Futures Foundations report highlights that – compared with other countries - this rate of unemployment in young people is by no means inevitable: 24 of 32 countries in Europe reduced their NEET rates between 2015-2023, with the UK one of a handful of European countries that saw them rise.

As the Keep Britain Working review recently highlighted, if policymakers want to support young people effectively, the focus needs to shift from job quantity to job quality.

What does job quality look like? It involves providing young people with predictable hours and progression pathways, yes, but combined with earlier occupational health support, reasonable adjustments, and incentives that reward keeping them well and in work.

It will take health providers, employers, government and training providers working together to pull it off.

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Dr Melissa Carr is a director of EDI at Henley Business School’s World of Work Institute, who researches precarious employment, gender and new organisational forms

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