Why Employers Should Be Concerned About Rising NEETs

For many employers, conversations about talent shortages have become routine. Organizations across industries continue to struggle with recruitment, skills gaps, and workforce planning, while simultaneously trying to adapt to rapid technological and economic change.

At the same time, another workforce trend is quietly growing in the background, and this is the rise in young people classified as NEET: not in education, employment, or training.

And employers should be paying attention.

According to the latest Office for National Statistics data, nearly one million young people aged 16–24 in the UK were classified as NEET, representing 13.4% of that age group (the highest figure in more than a decade). That number increased by 110,000 year-over-year. And, a more recent analysis linked to a government-backed review has warned that the figure could rise to 1.25 million by 2031 if action is not taken.

It would be easy to view this solely as a social or political issue, but in reality, it is also a significant business issue.

A growing NEET population affects future talent pipelines and long-term economic growth. It also raises important questions about how accessible employers are making entry-level opportunities, particularly for younger workers navigating a labor market that increasingly demands experience before experience has been given.

Many organizations are already feeling the contradiction. Employers report ongoing skills shortages, yet younger candidates often describe difficulty accessing meaningful early-career opportunities. Apprenticeship numbers have declined in several sectors, entry-level roles are becoming more competitive, and recruitment processes can unintentionally create barriers for inexperienced applicants.

The challenge is clear: if large numbers of young people remain disconnected from education and work for prolonged periods, organizations risk shrinking future talent pools and widening skills shortages.

But there is also a major opportunity for employers willing to rethink how they engage emerging talent. Organizations that invest in accessible pathways like apprenticeships, return-to-work programs, and genuine entry-level hiring are often the ones building stronger long-term talent pipelines. They are also more likely to improve retention by developing talent internally rather than relying solely on increasingly competitive external hiring markets.

Importantly, younger workers are not looking only for jobs. They are looking for clarity, development, purpose, and support. Employers who can provide structured onboarding, mentorship, realistic career pathways, and human-centered management are often far better positioned to attract and retain early-career talent.

This is especially important as conversations around mental health and economic uncertainty continue to shape younger generations’ relationship with work. Alan Milburn’s recent review into youth inactivity warned against allowing a “lost generation” to emerge and highlighted the need for stronger collaboration between government, education, and employers.

Businesses cannot solve the issue alone, but they are an essential part of the solution. The organizations that respond proactively now are likely to benefit in the long term. Investing in young talent is not simply a corporate responsibility initiative; it is a workforce strategy. It creates resilience, strengthens succession planning, supports innovation, and helps organizations build future-ready teams.

The conversation around NEETs should not be framed as a story of disengagement or blame. For employers, it is a reminder that future talent does not develop accidentally. It develops when organizations intentionally create opportunities for people to enter, learn, contribute, and grow.

If you would like to discuss how we can help ensure that your organization is in prime position to attract and retain this new pool of potential talent, please get in touch with us today!