Youth unemployment surges past 950,000 after Rachel Reeves’s tax raid, ONS figures reveal
Youth unemployment in Britain surpassed 950,000 towards the end of 2025, according to the latest figures from the Office for National Statistics (ONS).
This latest uptick in unemployment among young people comes after the recent hikes to the National Living Wage and National Insurance contributions for employers, which were announced by Chancellor Rachel Reeves during her Budget statement in 2024.
Many business leaders have claimed that this tax hike has been a notable extra cost, resulting in many employers being unable to hire younger workers.
The number of young people not in employment, education or training, otherwise known as Neets, jumped between October to December 2025.
ONS figures found that there were 957,000 Neets aged 16 to 24 over the period, a slight increase from 946,000 in the previous quarter.
David Freeman, joint head of the labour market division at the ONS, broke down why unemployment figures are on the rise.
He said: “The final quarter of 2025 saw a slight increase in the number of young people not in employment, education, and training compared to the previous quarter. This was driven by higher unemployment, with more young people actively looking for work.”
Previous ONS figures had revealed that youth unemployment is currently sitting at around 15 per cent for 16 to 24-year-olds, with overall unemployment rising to 5.2 per cent.
Rachel Reeves has made economic growth central her her agenda | GETTYLATEST DEVELOPMENTS
Youth unemployment since 1992 | House of Commons LibraryEconomists have sounded the alarm over these figures as 900,000 graduates prepare to enter a tightening labour market in the UK.
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