UK risks £125bn hit a year from youth unemployment, landmark report says
Summary
A government-backed report warns that over 1 million young people in the UK are not in work, education, or training, risking a £125 billion annual cost to the economy. The report highlights that this situation harms the country’s finances and the future prospects of young people, urging policy changes to address the issue.Key Facts
- More than 1 million young people aged 16-24 in the UK are not in education, employment, or training (known as "Neet").
- This is the first time since 2013 that the number of Neet young people has risen above 1 million.
- The report estimates the annual cost of youth worklessness to the UK economy and public finances at £125 billion.
- Being Neet causes long-term harm to young people’s confidence, health, and future income, with an average lifetime earnings loss of £52,000.
- If all Neet young people aged 18-24 had jobs, the UK economy would gain £38 billion in gross domestic product.
- The government spends about £8.1 billion a year on benefits for young people, with £4.4 billion going to those who are Neet.
- The longer young people stay without work or education, the harder and more costly it is to help them re-enter the workforce.
- The report recommends changes in policies for schools, health services, welfare, and employment support to reduce youth disengagement.
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