The Briefing Room

Why is youth unemployment in the UK so high?

12 snips
Mar 26, 2026
John Burn-Murdoch, FT data reporter, gives international data context. Lindsay Judge, Resolution Foundation researcher, focuses on policy and who is most at risk. Jack Kennedy, Indeed economist, maps the graduate and entry‑level hiring slump. Xiaowei Xu, IFS economist, explains payroll versus survey trends. They discuss NEET diversity, sector and pay pressures, mental health and education pipelines, and policy gaps in short, sharp strokes.
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INSIGHT

Graduate Job Postings Fell Sharply

  • Graduate job postings on Indeed labelled 'graduate' were down about 20% year on year and at a nine-year low, reflecting weaker entry-level hiring.
  • Jack Kennedy says employers cut new hiring first during slowdowns and existing workers move less, reducing openings for graduates.
INSIGHT

Policy And Sector Shifts Reduced Entry Level Roles

  • Entry-level sectors like retail and hospitality have slowed, reducing traditional pathways for young workers to get experience.
  • Jack Kennedy links policy headwinds — higher employer NICs and larger youth minimum wage rises — to higher relative costs of hiring young people.
INSIGHT

Hidden Inactive NEETs Are Hardest To Reach

  • The inactive portion of NEETs is particularly worrying: many are low-qualified and not actively looked after by the state.
  • Lindsay Judge highlights a large group off benefits living with family and out of sight of services.
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