Youth NEET numbers fall but youth employment challenge remains, BRC warns

The number of young people not in education, employment or training (NEET) has fallen in recent months, after surpassing one million earlier this year. However, the British Retail Consortium warns that the scale of the challenge facing young people remains significant.

There were an estimated 981,000 so-called NEETs aged 16 to 24 in April to June, a fall of 30,000 compared with the first quarter of the year. Although, the figure remains 30,000 higher than in the same period last year, according to the Office for National Statistics (ONS).

The total rose above one million earlier this year for the first time in more than a decade, fuelling calls for more support to help young people into work.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Today’s figures are a stark reminder of the scale of the challenge facing young people, with almost one million 16- to 24-year-olds not in education, employment or training.

“Retail has long played an important role in providing accessible, local and flexible jobs that offer a first step into employment. But retailers’ ability to offer these jobs is being eroded by new employment reforms.

“If the Government is serious about tackling the NEET crisis, it must not hinder flexible opportunities for young people. Retail stands ready to work with the Government to support more young people into work, but this requires employment reforms that do not confuse flexibility with insecurity.”

Earlier this month, the British Retail Consortium urged the Government to protect flexible, entry-level retail jobs after new polling found that 80% of UK adults consider part-time work important for young people.

Retail and its supply chain account for 23% of all youth employment, according to the trade body. The BRC said these roles allow young people to earn their first wage and gain valuable workplace experience while continuing their studies or managing other commitments.

The BRC is concerned that guaranteed-hours provisions being developed under the Employment Rights Act could add further costs. Due to take effect in January 2027, the measures would require eligible workers on zero-hours and low-hours arrangements to receive offers reflecting their regular working patterns.

A Government analysis estimated that the measures could cost employers between £350 million and £2.9 billion annually, with a central estimate of £1.1 billion. It also identified potential economic benefits of £10 billion through improved wellbeing and productivity.

However, trade unions support stronger guaranteed-hours rights, arguing that unpredictable schedules leave workers without reliable incomes. Usdaw has said the legislation would protect retail employees and prevent responsible businesses from being undercut by employers using insecure working practices.

The new figures come as Sainsbury’s announces plans to offer around 10,000 work experience opportunities to young people across England, Scotland and Wales over the next year.

Dickinson described the initiative as a starting point for wider action across the industry.

It also follows the launch of Lush’s first apprenticeship scheme, which offers aspiring therapists in its London spa locations the opportunity to gain nationally recognised Level 2 and Level 3 qualifications in Beauty Therapy.

The scheme will provide apprentices with 30 hours of paid work per week at an hourly rate of £14.80 - a rate that Lush says is almost double the government’s minimum wage for apprentices under the age of 21.