A stark new report has warned that young people in the UK are facing a “lost generation” of joblessness, with the number of 16- to 24-year-olds not in education, employment or training (NEET) rising to its highest level in a decade. The study, published by the Youth Employment Group, calls for an urgent expansion of high-quality apprenticeships as a proven solution to bridge the gap between school and stable work.
The report paints a grim picture: youth unemployment now stands at 12.8 per cent, up from 10.2 per cent two years ago, with regional disparities deepening. In the North East, one in five young people are NEET, compared to one in twelve in London. The cost of living crisis has exacerbated the problem, leaving many young people unable to afford travel to interviews or the basics of entering the workforce.
“This is not a blip, it is a structural failure,” said report author Dr. Emma Hartley, a labour market economist at Manchester University. “We are wasting the potential of an entire generation. The old model of university as the only route to success has left many with debt and no job. Apprenticeships offer a paid, practical alternative that works.”
The report highlights the British apprenticeship model as a beacon of hope. Countries like Germany and Switzerland have long relied on vocational training, but the UK has seen a decline in apprenticeship starts since the levy was introduced in 2017. The report argues for a revamp: more funding for SMEs to take on apprentices, better wages for trainees, and a guarantee that schemes lead to permanent roles.
Take the example of 22-year-old Liam Brennan from Sunderland. After finishing A-levels, he took a level 3 apprenticeship in advanced manufacturing with a local engineering firm. He now earns £23,000 a year, has no student debt, and is studying for a degree part-time. “If I’d gone to uni, I’d be in debt and maybe still looking for work,” he told me. “This gave me a ladder when the floor was falling away.”
But the odds are stacked against many. Cuts to further education colleges and youth services have left gaps. The report calls for a new “Youth Guarantee” offering every 18- to 24-year-old a job, apprenticeship or training place within six months of becoming NEET. It estimates this would cost £1.5 billion a year, but the long-term gains in tax revenue and reduced welfare would far outweigh the outlay.
For Sophie Williams, 20, from Grimsby, the wait has been brutal. She’s applied to over 60 jobs since leaving college with a childcare qualification: “I’ve had two interviews. The rest don’t even reply. My mum can’t afford to support me forever. I feel like giving up.” She wants a childcare apprenticeship but says there are few places within a ten-mile radius.
The government has pledged to “level up” opportunities, but critics say plans are too slow. Shadow Education Secretary Linda White responded to the report saying: “Young people are paying the price for years of neglect. The Tories promised an apprenticeship revolution but delivered a slump. Labour would guarantee a starter job or training for every young person and fund local colleges properly.”
Business groups have backed the call. The Confederation of British Industry said apprenticeships are “vital to solving skills shortages” but need reform to be more flexible and better paid currently, the minimum wage for apprentices is just £5.28 an hour well below the £10.42 for over-23s. Unions argue this must rise to reflect the real cost of living.
The report also warns that automation and AI will hit low-skilled jobs hardest. Retraining must be built into any solution. “We need a system that flexes with the future,” said Hartley. “Apprenticeships in digital, green tech and care are where the jobs are growing. We must steer young people into those sectors.”
This is not just about charts and numbers. It’s about Liam and Sophie and the thousands in between. A lost generation isn’t inevitable, but the window to act is closing. If we want to mend the broken ladder of opportunity, we must start now.
