UK faces risk of 'lost generation' as youth joblessness tops 1 million

The number of 16- to 24-year-olds not in employment, education or training — so-called "NEETs" — topped one million in the first quarter of the year for the first time since 2013, according to official data cited by AFP. Without action, that figure could rise to 1.25 million, or one in six young people, within five years, a report warned.

"We are at risk of a lost generation," said Alan Milburn, a former Labour cabinet minister who led the review and is due to propose solutions later this year. "It's a warning that far too many young people are reaching adulthood only to find the door to opportunity closed," he told a press conference.

Calling the report "sobering" but vowing he would not allow a generation to be lost, Prime Minister Keir Starmer pledged to work with Milburn "on what more needs to be done." About a decade ago, Britain had a similar NEET rate to the European Union average. By last year, only Romania recorded a higher rate.

The report found rising mental health problems played a key role in the increase in NEETs in Britain. "For the first time in perhaps two centuries, changes in health, especially in mental health, are impeding economic growth and causing a contraction in the supply of labour," Milburn said.

The economic cost of the youth unemployment crisis was estimated at around £125 billion ($168 billion) per year, taking into account lost tax revenue and higher health and welfare spending. "Behind the statistics are real young people facing real and often multiple barriers," said Sarah Yong, deputy chief executive at Youth Futures Foundation. The British Chambers of Commerce said the issues identified have "long been reported by businesses." According to Mehr News, the report highlights the urgent need for action to prevent a lost generation of young people in the UK.