Alan Milburn warns of ‘generational faultline’ as NEET review published

The Story

Alan Milburn’s review of young people not in education, employment or training (NEET) warns that the NEET rate could rise from one in eight to one in six within five years. Milburn said nearly six in 10 young people who are NEET today have never had a job, and that youth detachment from the labour market is becoming permanent. He called for a ‘new deal’ with government support for employers, and said the review found no evidence linking immigration to the NEET crisis.

Key Facts

• Alan Milburn’s review forecasts that the NEET rate could climb to one in six within five years if current trends continue.
• Nearly six in 10 young people who are NEET are economically inactive and have never had a job, up from four in 10 20 years ago.
• Milburn said the UK’s NEET rate has barely been below 10% in 25 years, and the problem is getting worse.
• Milburn said the problem is no longer temporary youth unemployment but “youth detachment from the labour market” that is becoming permanent.
• The review found no evidence of a link between immigration levels and higher NEET rates.
• Milburn said the UK should learn from the Netherlands, which has a third of the UK’s NEET rate due to better vocational education and integrated services.
• He said there is a backlog of two million people waiting for a reassessment of their work capability within the welfare system.
• Milburn said schools’ incentive systems should change so they are held accountable for pupils becoming NEET.
• He noted that Labour policies including the youth minimum wage and rise in national insurance contributions have had an impact, but that the structural decline in youth jobs has been occurring for decades.

Conflicting Reports

No conflicting reports identified in the source article.

Still Unclear

What specific policy changes the government will adopt in response to the review remains unclear, as Milburn said he was not making policy recommendations. Details of the proposed ‘new deal’ between employers and the government are not specified.

Misconceptions

The review addresses the misconception that immigration is a primary cause of the NEET crisis. Milburn stated the review found no evidence of a link between migration levels and NEET rates.

Key Figures

Alan Milburn – author of the NEET review. Pat McFadden – asked Milburn to conduct the review. Stephen Timms – reviewing Personal Independence Payments (PIP) for the government.

Sources

• The Guardian — Primary Source (single-source story)