A Lost Generation: The Growing Crisis Facing Young People

A major new report has warned that the UK is facing a "lost generation" as job and career opportunities for young people continue to shrink. According to a review by former minister Alan Milburn, over one million young people are currently not in education, employment, or training—a group often referred to by the acronym NEET. This figure represents the highest level seen in more than 12 years, sparking serious concerns about the future of young adults in the country.

Milburn’s report argues that the education, health, and welfare systems are no longer working effectively to prepare young people for adult life. He describes the current situation as a "perfect storm" of challenges. While some have suggested that young people are simply not trying hard enough, the report strongly rejects this idea. Instead, it notes that many young people are submitting dozens or even hundreds of job applications, only to be met with silence or rejection. Milburn emphasized that the old social contract—where hard work leads to a reward and each generation does better than the last—has been broken for today's young people.

The statistics paint a difficult picture. According to the Office for National Statistics (ONS), there were over one million NEETs in the UK between January and March 2026, making up 13.5% of the youth population. Perhaps most concerning is that six in ten of these young people have never held a job, compared to four in ten in 2005. Furthermore, the report estimates that the total cost of this crisis to the UK economy is approximately £125 billion per year. This includes lost tax revenue, increased spending on health and benefits, and the long-term economic damage caused when young people are unable to gain early work experience.

For many young people, the reality is a cycle of frustration. Luke, a 23-year-old university graduate, shared his experience of applying for more than 400 roles. He explained that he is often rejected from basic jobs for being "overskilled" while simultaneously lacking the specific experience required for more advanced positions. This "Catch-22" situation—a difficult situation where the solution is blocked by the problem itself—leaves many feeling hopeless. Another young person, Zaynah, noted that her lack of experience and initial shyness made it nearly impossible to secure a retail role, despite her strong desire to work.

The report also highlights that this crisis is deeply connected to inequality. Where a person lives, their background, and their health play a major role in their chances of success. For example, in some areas, the proportion of young people not in work or education is significantly higher than in others. Geography is a key factor; better public transport in places like London helps young people reach more opportunities, while those in the north or the Midlands often face more barriers. Additionally, health issues, particularly anxiety and depression, have become a central reason why many young people become and remain NEET.

The current welfare system is also under fire. The report suggests that the government spends far more on benefits than it does on helping young people find work. It criticizes the current "fit note" system—a document from a doctor that says someone is not healthy enough to work—as a failure that labels young people as unable to work rather than providing the support they need to return to the workforce. According to The Guardian, about seven in ten young people who start claiming health or disability benefits between the ages of 16 and 24 are still doing so a decade later.

Prime Minister Keir Starmer has described the report as "sobering" and promised to work with Milburn to address these issues. While the current report does not provide a list of solutions, a final report is expected to follow with recommendations. For now, the findings serve as a wake-up call for a country where many young people feel trapped in a system that offers them few paths forward. As the report concludes, this is not just an economic issue, but a moral crisis that requires urgent attention to ensure that the next generation is not left behind.