KEY CHALLENGES
Most recent data published by the Office for National Statistics (ONS) shows there were 628,000 young people aged 16-24 who were unemployed in the three months to November 2024. This was an increase of 98,000 compared to the same period in 2023 lifting the youth unemployment rate from 12.4% to 14.5% (see key data). Correspondingly, the number of 16–24-year-olds employed was 40,000 fewer than the previous year to a rate of 50.4%, down from 51.8% in 2023.
The surge in youth unemployment has coincided with a rise – by 75,000 last year to 3.02 million – in young people recorded as economically inactive. The ONS point out that this is the highest recorded number since the current series began in 1992. Around 60% are in full-time education but the proportion not in education has risen to around 20% since the turn of the decade. A key factor is the number of young people that are economically inactive due to ill health, which has doubled to 250,000 since 2021. Within this group, there was a 24% rise in the number of young people unable to participate economically due to mental ill health.
Another problem reflected in the data is the rise in the number of young people recorded as not in education, employment or training (Neet). The ONS data shows 946,000 young people were Neet in July to September 2024, 42% of whom were unemployed and 58% economically inactive, meaning they were not working, not seeking work or available to start work. Overall, 11.2% of women and 15.1% of men aged 16 to 24 were Neet.
APPRENTICESHIPS AND TRAINING
Much lip service has been paid by politicians in recent years to reinvigorating apprenticeships but data shows the number of 16-to 24-year-olds undertaking placements has shrunk significantly in the last 15 years. Department for Education data shows that in 2008, under-19s accounted for 41% of all apprenticeship starters while those aged 19-24 made up 35%. By 2024, these proportions had fallen to 23% and 28% respectively. Meanwhile, the proportion of apprenticeship starters aged 25+ has doubled to 49% over the same period.
The type of apprenticeship being undertaken has also shifted – in 2018, nearly 150,000 intermediate apprentices started courses but by 2023 that had fallen to around 70,000. Over the same period, the number starting advanced courses stayed roughly the same, while those doing higher apprenticeships (Level 7) rose from around 70,000 to 120,000. The decline in intermediate apprenticeship starters is a significant problem for young people, as highlighted in the Revitalising Apprenticeships report by former Downing Street skills' adviser Baroness Alison Wolf published by the Social Market Foundation (SMF) in January.
“The shifts to higher-level apprenticeships, and to older apprentices are interconnected,” states the report. “There has been a very marked shift not just from workplace entry-level (intermediate) to higher-level apprenticeships, but to higher-level apprenticeships for older adults.”
The Wolf review concludes that a major factor in this change has been the introduction of the Apprenticeship Levy which allows organisations above a certain size to offset the money they pay against training for their apprentices, while ‘unused’ levy funds pay for apprenticeship training in small and medium-sized enterprises (SME) or retained by the Treasury (see big debate).
“The incentives created by the levy account in large part for the undesired and undesirable changes in apprenticeship numbers and types,” the report states.
GOVERNMENT REFORMS
The government has made economic growth its key target for this parliament and Education Secretary Bridget Philipson has pledged that vocational routes to employment for young people will be central to achieving this.
There have already been moves to restrict master's degree apprenticeships, but the Wolf review calls for further “immediate” changes to “incentivise” employers to take on young apprentices. This should include ringfencing funding for young apprentices, automatic funding of training for 16-to 18-year-olds who would otherwise be in education and not funding the full cost of training over-25s. Baroness Wolf also calls for an “overhaul” of the Apprenticeship Levy so that the UK “operates a single system for all employers, with the same set of incentives and obligations”.
“Apprenticeship must be restored to its provenly effective and historic role, providing young people with in-depth training in a new occupation,” the report states. “This is more important than ever, given the growing need to address youth unemployment and inactivity.”
To that end, the Prime Minister last autumn pledged to create foundation apprenticeships and “rebalance funding in our training system back to young people”.
To deliver this, it published plans to replace the Apprenticeship Levy with a new growth and skills levy. The new levy will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months. The training eligible for funding under the new levy will develop over time, informed by Skills England's assessment of priority skills needs. The Department for Education will set out further details on the scope of the offer shortly.
The Get Britain Working white paper published last November included plans for a “Youth Guarantee” – a promise that every 18-to 21-year-old in England gets access to education, training, or help to find a job or an apprenticeship. There are also other reforms designed to improve the transition for young people into the world of work, including ensuring two weeks' work experience for schoolchildren, improved access to mental health support, enhanced careers advice services and benefits sanctions for young people that do not take up opportunities. There will also be eight place-based Youth Guarantee trailblazers with £45mn of funding in 2025/26. These trailblazers will design and test how different elements of the scheme can be brought together into a coherent offer. While welcoming the guarantee, Baroness Wolf calls for it to be expanded across England urgently.
LOCAL INITIATIVES
Baroness Wolf says the government should marry its apprenticeship reform plans with its ambition to devolve more decision-making at a local and regional level.
“The government has committed itself to further devolution, and should make apprenticeships one of its priority areas,” her report states. “All countries with high-quality apprenticeship systems are rooted in local institutions, but with a clear governmental commitment to providing accessible training institutions for all occupations.” She recommends funding be devolved to mayoral combined authorities and local authorities “who should also take on responsibilities for ensuring quality training provision”, she adds.
Under measures introduced by the previous government, local authorities have duties to be a system “broker”, bringing educators, training providers and employers together to promote opportunities for local young people based on an area's economic needs. This is important for all young people but particularly those identified as being at risk of becoming Neet or those who might need additional support in the workplace. To this end, local authorities and other public agencies have been at the forefront of developing supported internships and placements for young people with special educational needs and disabilities (SEND), who may need extra support compared with peers (see ADCS view). In fact, a recent pilot study of 100 young people who were Neet and supported by charity Career Connect found that 88% of them had a diagnosis of ADHD or traits of it. ADHD is a type of SEND and the young people in the study with the condition often experienced anxiety around meetings with a careers practitioner.
Career Connect has also called for more targeted careers support for 16- and 17-year-olds who are Neet through the adoption of a set of eight benchmarks that schools and colleges can use to ensure they are meeting the needs of this vulnerable group. The charity says adopting the “Gatsby-style benchmarks” would provide careers services a “clear definition of what ‘good’ looks like”. It would build on the eight benchmarks developed by the Gatsby Foundation that have been widely adopted by schools and colleges for all pupils (see big debate). These are also being revised currently with separate sets of benchmarks for secondary schools, special schools and alternative provision, and another for colleges and independent training providers set to come into use from this September.
There are also many local and national charities delivering targeted employment support initiatives for young people struggling to get onto the first rung of the jobs ladder – from mentoring schemes to work experience placements (see practice examples) – that are delivering good outcomes and experts want to see expanded. The challenge for the government will be to bring these local, regional and national initiatives together into a coherent offer.
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ADCS VIEW: EDUCATION, EMPLOYMENT AND TRAINING OPPORTUNITIES FOR YOUNG PEOPLE WITH SEND
Andy Smith, ADCS President 2024/25
Access to quality education, training, and employment is vital for all young people, no more so than those with special educational needs and disabilities (SEND). With over 1.6 million pupils in England identified as having SEND and growing, it is imperative that we focus on creating inclusive pathways that empower them to achieve their fullest potential.
The transition from education to employment can be challenging for any young person, but those with SEND often encounter a complex journey filled with barriers, such as limited access to tailored support, resources, and opportunities. Statistics paint a concerning picture – young people with SEND are significantly less likely to secure employment compared to their peers, and they typically earn much less according to Department for Education data.
Creating pathways that empower young people with SEND requires collaboration among local authorities and health, schools and colleges, employers and training providers. Before and after the age of 18, we must work to ensure that young people are not only aware of their options but also equipped with the skills necessary to thrive in adulthood.
Supported internships provide invaluable work experience for individuals with an education, health and care plan (EHCP), fostering independence and a sense of accomplishment. However, a recent thematic report by Ofsted and the Care Quality Commission on preparation for adulthood, found that whilst local areas are working hard to improve support for young people with SEND there are still a number of systemic challenges limiting the ability to provide young people with sustainable employment opportunities, particularly in deprived communities with high unemployment and a lack of employers.
Many young people with SEND face a ‘cliff edge’ and postcode lottery in health support as they reach 18. With families often expressing frustration when internships or training opportunities lead to the premature conclusion of an EHCP, leaving young people without vital ongoing support. There is also often the harsh reality that most young people cannot accept work following supported internships because taking on a job makes them ineligible for benefits.
The report makes clear that challenges cannot be solved by one part of the system in isolation. ADCS emphasises the call for wider corporate parenting duties and improved system working across children's and adult services alongside increased funding and resources to ensure vulnerable young people live fulfilling and independent lives.
FURTHER READING
Youth unemployment statistics, House of Commons Library, January 2025
Revitalising Apprenticeships, SMF, January 2025
Get Britain Working white paper, November 2024
Good career guidance – the next 10 years, The Gatsby Foundation, November 2024
How do we support young people to get in and get on in the world of work? EPI, April 2024
