Milburn warns Neet rate could hit one in six within five years

The Story

Alan Milburn presented a review warning that Britain faces a “generational faultline” as the number of young people not in education, employment or training (Neet) could rise from one in eight to one in six within five years. Milburn stated that nearly six in 10 Neets have never had a job, up from four in 10 two decades ago, and described the problem as “youth detachment from the labour market” becoming permanent.

Key Facts

• The Neet rate in the UK has barely been below 10% in 25 years.
• Nearly six in 10 young people who are Neet are economically inactive, meaning they are not looking for a job.
• Six in 10 Neets have never had a job; 20 years ago that figure was closer to four in 10.
• The review forecasts that if the current trajectory continues, the Neet rate will climb to one in six within five years.
• The cumulative cost of almost one million young people outside education and work is estimated at £125bn a year.
• For Neets who spend the whole period from 18 to 24 outside education and work, the lifetime loss can approach £300,000.
• Milburn said Labour policies such as the youth minimum wage and the rise in national insurance contributions have had an impact, but the structural change predates recent policies.
• Milburn stated that entry-level jobs for young people have declined: 1.6 million fewer low- and medium-skilled jobs in the economy, a halving of hospitality vacancies in four years, and a 35% fall in apprenticeship starts among young people over the last decade.
• Milburn said he was not interested in a “blame game” and stressed the need for a “systems-wide view.”

Conflicting Reports

No conflicting reports identified in the source article.

Still Unclear

No open questions identified in the source article.

Misconceptions

No widespread misconceptions addressed in the source article.

Key Figures

• Alan Milburn – author of the Neet review, former Labour MP.
• Pat McFadden – referred to as having asked Milburn to undertake the review.

Sources

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