LONDON, June 8 (Xinhua) -- More than 1 million young people aged 16 to 24 in Britain were not in education, employment or training (NEET) in the first quarter of this year, highlighting growing concerns about a generation becoming detached from the labor market.
Data released by the Office for National Statistics showed that more than 1.01 million young people were classified as NEET in the January-March period, accounting for 13.5 percent of the age group. The figure was up by 89,000 from a year earlier.
Among them, 613,000 were economically inactive, meaning they were neither working nor actively seeking employment, while about 400,000 were unemployed and looking for work.
The figures underscore concerns raised in an interim report led by former British health secretary Alan Milburn. Commissioned by the government and published in late May, the report described youth disengagement as a "generational fault line" and warned that young people were being caught in a "perfect storm."
The report suggested that the issue extends beyond a lack of motivation. A survey conducted for the review found that 84 percent of NEET young people wanted a job, education or training opportunity. However, more than six in 10 had never held a job, compared with around four in 10 two decades ago.
It estimated the annual cost of nearly 1 million NEET young people at 125 billion pounds (169 billion U.S. dollars), including lost economic output, reduced tax revenues, welfare spending and the long-term impact on earnings.
Analysts and business groups say entry routes into work have become increasingly difficult to access. Traditional pathways such as part-time jobs, apprenticeships and work experience placements have weakened, while recruitment processes have become more demanding for applicants with little or no previous experience.
The British Chambers of Commerce described the Milburn report as a "wakeup call." Director General Shevaun Haviland said more than half of businesses were facing skills shortages, but higher employment costs were leading many firms to scale back recruitment and training.
She said businesses were often reluctant to hire applicants with limited experience, while young people struggled to secure the first opportunity needed to begin building a career.
John Bryson, a professor of economic geography at the University of Birmingham, told Xinhua that rising employment costs should be viewed alongside broader changes in the labor market.
According to Bryson, increases in employers' national insurance contributions and minimum wages, together with wider changes in workers' rights, have prompted some businesses to reduce entry-level recruitment, cancel hiring plans or leave vacancies unfilled.
He added that artificial intelligence was also reshaping employment prospects, although its impact remained limited in many people-facing sectors, including hospitality.
Experts say addressing the problem will require action on both sides of the labor market. Young people need better preparation and clearer pathways into work, while businesses need greater confidence and incentives to create entry-level opportunities.
The government has announced plans to provide 300,000 new work-experience and training placements under its Youth Guarantee program. The Milburn review is expected to publish its final recommendations later this year.
