Youth unemployment in the United Kingdom climbed to just under one million by the end of 2025, with new Office for National Statistics (ONS) data showing a rise in young people aged 16 to 24 who are not in employment, education or training.
The increase follows recent rises in employer costs linked to higher National Living Wage rates and National Insurance contributions introduced in the 2024 Budget, which business groups say have made hiring younger workers more difficult.
The number of young people actively seeking work grew during the final quarter of the year, pushing unemployment higher even as economic inactivity declined.
Analysts warn the situation could worsen as hundreds of thousands of graduates enter an already constrained labour market, with experts cautioning that prolonged joblessness among young people risks long-term financial and social consequences if employment opportunities fail to expand.
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