‘Hidden’ young people lean on Bank of Mum and Dad amid jobs crisis

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Almost one million 16 to 24-year-olds are classed as Neets - not in education, employment or training.

But around 300,000 are not claiming benefits, creating a group described as “hidden” because they are neither seeking state support nor help finding work.

The Institute for Fiscal Studies found 80% of hidden Neets live with their parents - underlining the growing divide between young people with a financial safety net and those without one.

Many are aged 22 or 23 and are looking for work, volunteering or taking a temporary break after university.

Read more: The number of young people not in education, employment or training falls by almost 30,000

Read more: When it comes to AI and the UK’s NEET crisis digital skills are now a social mobility issue

More than half have a degree, compared with 12% of Neets claiming benefits.

It comes as graduates face the toughest job market on record, with fresh data showing the number of entry-level positions almost halved in a year.

Just 8,383 graduate-level vacancies were listed in July according to job website Adzuna, down from 15,397 at the same time last year.

It is the lowest number ever recorded since the company started tracking the data in 2016.

The figures come as a record-breaking 262,820 people prepare to start university this month.

Former Labour health secretary Alan Milburn, who is reviewing the youth unemployment crisis, has called hidden Neets one of the most troubling findings of his research.

However, IFS economist Jed Michael said the group may be less vulnerable than those claiming benefits, with stronger job prospects and lower levels of poor health or disability - saying they were "much more likely to have good job prospects".

Hidden Neets are typically entitled to at least £4,000 a year in benefits - but are not claiming it.