NEET Stats: Govt must "scrap the unfair jobs tax" to save a generation of young people from unemployment.
The Liberal Democrats have called on the Government to urgently "scrap the unfair jobs tax" following new figures showing that over one million young people in the UK are now classified as NEET (not in education, employment, or training).
The demand follows a dual blow of grim economic data: an official report from the Office for National Statistics (ONS) and a major independent review on youth unemployment spearheaded by Alan Milburn. According to the ONS, between January and March 2026, the number of NEET young people hit 1,012,000—representing a staggering 13.5% of all 16 to 24-year-olds in the UK.
“Today's shocking figures confirm what we already knew: that an entire generation of young people are seeing their hopes and dreams ripped away, just as they enter what is meant to be the best years of their life," Daisy Cooper MP, Lib Dem Treasury Spokesperson.
The Liberal Democrats pointed the finger directly at recent fiscal decisions made by the Labour administration, arguing that current tax policies are actively suffocating the entry-level job market.
"Labour cannot claim they were not warned," "We Liberal Democrats repeatedly warned that Labour’s jobs tax would hammer job opportunities for young people and that their business rates hikes would kill off high street job opportunities too which give so many people young people their first job.” Daisy Cooper MP
The data highlights a shifting, harsher landscape for young jobseekers. Entry-level opportunities have eroded significantly, with mid and lower-skilled roles across the economy plummeting by roughly 1.6 million over the last two decades. The hospitality sector, traditionally a vital gateway for first-time workers, has been hit particularly hard, with vacancies halving in just the last four years.
Consequently, the Milburn report notes a stark generational shift: six in 10 NEET individuals today have never held a job, compared to four in 10 in 2005. Crucially, the report dispels the myth of widespread voluntary economic inactivity, revealing that 84% of the NEET young people surveyed actively want a job or training.
Of the current million-strong total, the ONS estimates that roughly 400,000 are actively seeking work but remain unemployed, while 613,000 are classified as "economically inactive" due to being unavailable or not currently looking for work.
Beyond the human toll, the crisis carries a massive fiscal burden. The review estimates that leaving nearly a million young people out of work costs the UK economy a cumulative £125 billion per year. This includes £38 billion in lost immediate economic potential and a massive £63 billion hit from long-term economic "scarring", a phenomenon where early-career joblessness leaves individuals less likely to secure stable employment in the future. The remaining billions are lost to diminished tax revenues and inflated health and benefits spending.
To reverse this trajectory, the Liberal Democrats are urging the Government to pivot its economic strategy toward youth support and sector relief.
“The Government must urgently take action to unlock the skills and opportunities young people need to build a future they can actually believe in," "This starts with a proper plan to get our economy growing again, scrapping the unfair jobs hike, throwing hospitality a lifeline and supercharging skills training and apprenticeships.” Daisy Cooper MP
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