By late 2025 it became obvious to the public that the UK faces a youth employment crisis. The Office for National Statistics (ONS) data for July–September 2025 shows that 12.7% of 16‑ to 24‑year‑olds ( approximately 946,000 young people) were classed as NEET (not in education, employment or training). Of these NEETs, 61% (around 577,000) were economically inactive, meaning they were not looking for work.
Of course, these numbers translate into human stories. The Guardian reports that young people labelled NEETs live on the “social and economic edge”. Rising absenteeism, widening attainment gaps and socio‑economic disadvantage drive this crisis. The York Policy Engine’s analysis notes that roughly 600,000 young people will remain long‑term NEET, with 300,000 out of work or learning for more than two years, and highlights regional disparities (15% NEET in the North‑East vs. 9.4% in South‑West England). Youth inactivity is increasingly linked to health problems and around half of NEETs report a disability, and approximately 18% have a mental‑health condition. Many NEETs move from unemployment to sickness benefits, often because anxiety and a lack of confidence hinder job‑search efforts.
This article examines the factors behind the youth employment crisis, reviews government and third‑sector responses, and proposes an alternative innovative digital solution to help young people build employability skills and move into meaningful work.
Causes of the Crisis
Economic forces and technology
Economic headwinds continue to hurt young workers. Youth unemployment rose from 14.8% to 16.0% in the year to September 2025, even as overall employment increased. Nearly half of the 170,000 jobs lost from UK payrolls since summer 2024 were in under‑25s, partly because of the “last in, first out” logic of redundancy. Entry‑level job shortages are exacerbated by automation and artificial intelligence; some employers now expect managers to justify hiring a human if AI could do the work. This trend disproportionately hits young people who need entry‑level positions to gain experience.
Education and attainment gaps
The attainment gap between disadvantaged students and their peers has widened since the COVID‑19 pandemic. notes that record absenteeism and poor GCSE results make young people far more likely to become NEET. The charity calls for early identification of at‑risk students and greater alignment of education and employment policies. The Youth Futures Foundation echoes this, proposing NEET prevention measures such as targeted financial support through schools and colleges and improving GCSE attainment.
Health and mental‑health challenges
Long‑term ill‑health is now a leading reason for economic inactivity among young people. The Youth Futures Foundation reports that over half of NEETs have a disability, with poor mental health being the main cause. The BBC’s summary of the Department for Education’s data show that more than half of NEETs in England in 2024 had a health condition, and about 18% had a mental‑health condition.
The ONS notes there were 577,000 economically inactive NEETs in July–September 2025. This suggests that any employability intervention must provide mental‑health support and be accessible to people with health conditions.
Social inequality and regional differences
Research by the York Policy Engine highlights how social and spatial inequalities shape youth outcomes. Young people from under‑represented backgrounds, with disabilities or caregiving responsibilities, are much more likely to become NEET. Regional disparities are stark: 15% of 16‑ to 24‑year‑olds in the North‑East are NEET, compared with 9.4% in the South‑West. This underscores the need for tailored solutions that consider local labour markets.
Declining apprenticeships and training opportunities
Apprenticeship opportunities have decreased sharply, down 30% since 2016. This compounds the difficulties faced by young people without higher‑education qualifications. The Youth Futures Foundation advocates an Apprenticeship Guarantee to ensure a Level 2 or 3 place for every qualified 16‑ to 24‑year‑old and financial incentives for small and medium‑sized employers to hire young apprentices.
Current Responses
Government policy
In November 2025 the UK government announced a Youth Guarantee as part of the Budget. The guarantee promises access to an apprenticeship, training or education opportunity — or help to find a job — for anyone aged 18–21. Those who have been on Universal Credit and looking for work for 18 months will be offered guaranteed six-month paid work placements. Those who refuse to take up the offer could face benefit sanctions (GOV.UK Budget 2025, November 2025).
The government is investing £820m over three years to fund these paid work placements for long‑term NEETs. Additionally, the government announced that training for under-25 apprentices will be completely free for small and medium-sized enterprises (SMEs). Critics warn that while these measures are welcome, conditionality and a punitive tone may discourage some young people from engaging.
Third‑sector interventions
Various charities and organisations offer programmes to build employability skills:
Career Connect runs Skills for Success workshops, masterclasses and Reach for the Future programmes, providing intensive support for school pupils. The programmes help students identify in‑demand skills, practise job applications and record their experience in portfolios; they also organise employer‑led sessions and mock interviews.
Youth Employment UK’s Young Professional Programme offers free online courses mapped to the Gatsby Benchmarks and Skills Builder framework, enabling young people aged 14+ to build employability skills and confidence at their own pace.
The King’s Trust Team Programme is a 12‑week personal development course for 16‑ to 25‑year‑olds. Participants engage in team building, community projects, work placements, and presentations, earning a Level 1 certificate in employment, teamwork and community skills. The programme aims to build confidence and prepare young people for employment or further training (Uxbridge College).
These programmes make valuable contributions but often require in‑person attendance, offer generic training or lack scalability. Given the scale of the crisis, there is a need for a digital, personalised and scalable solution that addresses both hard and soft barriers to employment, including mental health and confidence.
A Digital Solution: Create Your Own Future
Saffron Interactive’s Create Your Own Future platform is designed to help employability providers scale support through an AI‑enabled, personalised digital journey. The platform uses AI technology to match users to programmes, check eligibility and provide an ongoing journey of discovery towards and beyond employment.
Key features include:
AI Mentor: Users select a 24/7 AI‑enabled mentor that engages them in lifelike conversations. Natural language processing and sentiment analysis tailor responses to encourage and motivate users.
Skills assessment and career exploration: An in‑built skills assessment matches users’ skills to job profiles and live job boards based on their location. The platform recommends appropriate training and allows users to pin options for later.
Action planning and dashboard: Users create a personalised action plan or interactive to‑do list, fostering ownership over their career journey. A dynamic dashboard helps them re‑assess skills, update aspirations and track progress long after securing their first role.
Data analytics for advisers: Rich data analytics show advisors real‑time activity, confidence and progress levels. Sentiment analysis enables timely interventions, making the platform a blend of self‑service and human support.
Proven results: In pilot studies, 80% of learners rated the AI video mentor as supportive, 100% rated the skills assessment and action plan functionality as excellent, 90% rated the design highly, and 80% would recommend the platform to a friend. Users reported a 92% increase in confidence after completing the action plan and autistic users gave 100% endorsement.
The platform’s combination of AI‑powered conversations, skills assessment, personalised planning and data analytics directly addresses many barriers identified in the youth employment crisis:
Confidence and anxiety: Interactive conversations and personalised encouragement build confidence and mitigate anxiety. Youth feel supported, not judged.
Skills awareness: The skills assessment helps users identify strengths and gaps, aligning them to realistic job opportunities.
Continuous support: The dynamic dashboard provides ongoing guidance beyond initial job placement, preventing “churn” back into unemployment.
Scalability: AI conversations and automated matching allow providers to support large numbers of users without sacrificing personalisation.
Data‑driven interventions: Advisors can use real‑time analytics to target support where it is needed most.
With nearly a million young people classified as NEET and traditional programmes struggling to scale, there’s never been a more urgent time to rethink how we support young people into meaningful work.
Create Your Own Future offers employability providers a proven, AI-powered platform that delivers personalised guidance, builds confidence, and tracks real progress at scale.
Get in touch today to discover how Create Your Own Future can help your organisation reach more young people, deliver better outcomes, and make a lasting difference.
Contact Saffron Interactive to book a demo.
