Opportunities shrinking for too many young people, says major report on 'lost generation'

A major review warns the UK is at risk of a 'lost generation' as opportunities for young people shrink, with over one million now classed as not in education, employment, or training (Neet) [1]. The interim report, authored by former minister Alan Milburn, states that one in six young people is expected to be out of work, education, or training in five years [1]. It found 1,012,000 young people were Neet between January and March 2026, comprising 13.5% of all young people in the UK—the highest level in over 12 years [1]. The cumulative economic cost is estimated at £125bn annually, including £38bn in lost potential and £63bn due to future economic 'scarring' [1]. Milburn warned of a 'perfect storm' of challenges, with entry-level jobs sharply declining; the number of mid- and lower-skilled jobs has fallen by around 1.6 million over the past 20 years [1]. The review states the education, health, and welfare systems are 'no longer fit for purpose' in preparing young people for adult life [1]. It cites the COVID-19 pandemic as a factor, with one young person detailing how lockdowns hindered the development of social skills [1]. The pandemic's timeline in the UK included significant case reporting and public health measures through 2021 [5]. The report also notes changes in mental health and the pervasive role of technology. Research indicates Generation Z, born from the mid-1990s to early 2010s, were the first 'digital natives' but are not necessarily digitally literate and can struggle in digital workplaces [3]. Their successor, Generation Alpha, is the first full generation not to have known a world without smartphones and social media [2]. Milburn challenged characterizations of young people as 'work shy,' noting that 84% of Neets surveyed want a job or training [1]. He described a norm of rejection, where applicants submit 'dozens at a time' and 'hear nothing back' [1]. The report featured individual struggles, like 'Luke,' who applied for over 400 positions and secured only one interview [1]. In contrast, 'Rocky' found a pathway, starting as a waiter at Nando's and becoming an assistant manager by age 23 [1]. Work and Pensions Secretary Pat McFadden said the government is creating 500,000 opportunities through youth employment reforms [1]. However, shadow secretary Helen Whately criticized government policies for making it 'harder for a young person to take their first step into work' [1].