With UK unemployment rising, will the government’s plan for young people pay off? An economist’s view

There are nearly one million young people in the UK who are not in employment, education or training (so-called Neets). After falling in number during the 2010s before the pandemic, this cohort of 16 to 24-year-olds has grown from 750,000 only six years ago. This is a worrying shift, for several reasons.

Research shows that a spell of unemployment at a young age can have outsized negative effects on the young person. Workers who were unemployed for even a short time at a young age have to contend with lower wages and poorer mental health even years later. In the three months to October, unemployment in the UK climbed to 5.1%, with young people particularly badly affected.

To address these challenges, the UK’s autumn budget introduced a package of measures intended to help young people move into stable work. The announcements include more apprenticeships, employment support and a guaranteed work placement for long-term unemployed young people.

There were also policies aimed at young people already in work. The government previously promised to abolish the

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