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A growing number of young people in the United Kingdom, aged 16 to 24, are unemployed and economically inactive, according to a report by the Financial Times. This figure has risen nearly 25% since 2022, reaching 870,000, with part of the increase attributed to a post-pandemic mental health crisis. The mental health issues have disproportionately affected young people in the UK compared to their peers in other developed economies.
However, addressing mental health challenges alone is not enough to reintegrate young people into the workforce. A significant skills gap, coupled with a rigid labor market, creates additional barriers. The rate of economic inactivity among young adults, who are not seeking or available for work, has surged faster than in the general UK workforce over the past year.
This trend contrasts with previous periods of low labor market participation, such as after the 2008 financial crisis, when youth unemployment surged in line with broader unemployment rates. In fact, inactivity among 18- to 24-year-olds exceeded 35% in the three months from December 2023 to February 2024, the highest level since records began in 1992.
While students represent a significant portion of inactive young adults, the sharp rise also points to an accumulation of long-term health problems. The number of 16- to 24-year-olds inactive due to long-term illness reached 240,700 in the first quarter of this year, a 28% increase from 2022. This is part of a broader trend of health-related unemployment across all age groups in the UK. Older individuals tend to suffer from physical ailments, but mental health issues predominantly affect the younger generations.
Official surveys indicate that one in five young people aged 16 to 24 who were not in education, employment, or training were dealing with mental health problems. Moreover, research from the Health Foundation and Resolution Foundation shows that just one in five unemployed 18- to 24-year-olds due to illness has a high school diploma, and only one in 25 has the necessary qualifications for higher education. Christopher Rocks, chief economist at the Health Foundation, emphasized the connection between low skills and poor health, warning that "these young people will face long-term difficulties finding and keeping jobs, so the government and employers must act quickly to secure the future of the workforce."
