News Editor Holly Briggs unpacks the growing challenges facing young people entering the workforce ahead of Alan Milburn’s report this autumn.
On 28 May 2026, former Health Secretary Alan Milburn published a report which brought to light the harsh reality of employment opportunities for young people in the UK. After spending five years serving in the UK Cabinet under Tony Blair’s New Labour government, he has been tasked by the government to lead an independent review into the rising NEETS (those not in education, employment or training).
Milburn is expected to publish his final report with full recommendations this autumn. Ahead of this publication, here is a reminder of his worrying report, specifically its references to university students.
The scale of the problem
From October to December of 2025, 957,000 young people in the UK were classified as NEET. That equates to 12.8% of those aged 16 to 24.
Milburn’s report illustrates NEET rates since 2001, with a 16.9% peak in 2012 reflecting a post financial crisis world. This eased as the economy recovered. The floor of 9.7% in 2021 represents a pandemic era economy, where unemployment was suppressed through state intervention via the furlough scheme.
While the current NEET figures are lower than those recorded a decade ago, the figure is arguably more alarming as the spike is not a direct response to a global event, such as the 2008 financial crash. Instead, this rise reflects a deeper, more entrenched societal issue. Part of the UK’s problem is its lack of technical and vocational education routes, which, combined with the fall in entry-level role availability, has created a job market that isn’t in favour of young workers. New Prime Minister Andy Burnham has pledged to make changes to the education system, including giving 14-year-olds access to technical education and skills training, a move inspired by Milburn’s warnings.
Graduates aren’t exempt
Focusing specifically on the section of Milburn’s research that discusses higher education within the NEET population, some surprising figures emerge. Despite the percentage of those aged 18 entering higher education rising from 24.7% in 2006 to 36.3% in 2025, an alarming 13% of the NEET population hold a degree or other higher education qualification.
The graduate premia – the percentage difference in average income between graduates and non-graduates – is falling in regions outside of London and the South East. Many regions are struggling to generate graduate level opportunities and wages.
Whilst there is evidence that obtaining a higher qualification reduces the risk of a young person becoming NEET, there is also evidence that “education attainment is not as protective as it once was”. With university fees, and thus student loan debt, only rising, the loss in the protective power of higher education is worrying. Universities are already financially struggling, and while attendance among home students is increasing, a trend may occur where students begin to believe their degree is no longer worth the money, given the lack of employment security it once offered. If so, this could put universities under even more pressure.
In their own words
Milburn’s report includes testimonies from many young people. Their experiences help to highlight the reality of this issue.
Speaking to a woman aged 21, he reports her saying:
This reflects a reality many university graduates face. In 2025 alone graduate positions fell by 33%, reaching their lowest level since 2018.
Speaking to a woman aged 22 about work experience opportunities at University she stated that:
“they were all unpaid and because I was working while at university, I felt it wasn’t really something I could do.”
Many of the young people he spoke to cited financial reasons as preventing them from getting into the workforce, including a man age 18 who explained:
“Once I get a car, it’ll open up a lot more opportunities”.
The Price Tag
According to the Department for Education’s 2024 Graduate Labour Market Statistics (the most up to date release), 67.9% of working age graduates (aged 16-64) are in high skilled employment, with 87.6% employed overall.
While many factors, including ill health and caring responsibilities, can contribute to unemployment, these statistics raise questions around the availability and reliability of graduate level roles.
This NEET crisis costs the UK £125 billion a year, while Personal Independence Payments (PIP) for 16- to 24-year-olds have risen from £1.3 billion to £3.2 billion in five years. Combine this with the UK’s wage stagnation, which lowers consumer spend and contributes to a productivity crisis, and the UK’s economic outlook only worsens.
Milburn’s report paints a troubling picture of the scale of the issue. Eyes will turn to the Autumn where he is expected to set out the structural changes needed in a final report.
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