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Former minister Alan Milburn has led a major review that warns that one in six young people in the UK could be out of work, education, or training by 2031 if no action is taken. The report, which was commissioned by the UK government, found that the education, health, and welfare systems are 'no longer fit for purpose' in preparing young people for adult life.

And it's not just a matter of a few individuals struggling to find work – the numbers are staggering. There were 957,000 young people classed as Not in Education, Employment, or Training (NEET) from October to December 2025, equivalent to one in eight people in that age category. Over half of those deemed to be not looking for work.

Zaynah, 24, has suffered from physical ill health and has not had a job since leaving college. Over the past year, she has applied for more than 200 jobs but said she never heard back from any of the employers. "Getting a job is very hard because with my issues, I haven't got that much experience, I've never worked before," she added.

But there are some success stories. Rocky, who was written off at school, is now a manager at Nando's after joining the company as a waiter three years ago. He credits his progress to mentoring by a manager at Nando's and ongoing support from the youth charity Spear.

The report found that for every £1 spent on employment support for young people, around £25 was spent on benefits. It also said the number of low-and medium-skilled jobs in the UK had fallen by 1.6 million in the past 20 years, while the number of higher-skilled positions has risen by 6.3 million.

High street retailers and hospitality businesses such as restaurants, cafes, and pubs often offer the first experience of work for many young people. But in the hospitality sector vacancies have halved in the past four years. The boss of Next, Lord Simon Wolfson, told the BBC this week that just two years ago, the retail giant typically received 10 applications for every shop vacancy, but that number had since risen to 19.

Rain Newton-Smith, the chief executive of the Confederation of British Industry, said the report exposed 'a tragic waste of potential and sets out the key problems that must be fixed'. 'Reducing the high cost of creating jobs in the UK would open up more opportunities,' she claimed.

Meanwhile, the government has defended its decision to raise taxes on business and increase the national minimum wage. The Prime Minister, Sir Keir Starmer, recently U-turned reforms to welfare spending that aimed to save £5bn a year by 2030 after facing a rebellion by his own Labour MPs.

Work and Pensions Secretary Pat McFadden welcomed the findings of the report, saying the government is already taking action to address the youth unemployment crisis. He highlighted the government's plans to pay companies to hire young people and its moves to create more apprenticeships.

The findings from the former Labour health secretary's review have been heavily trailed. He told the BBC's Laura Kuenssberg that the government spends 25 times as much on benefits for young people than it does on supporting them into work. "This is not a failure of young people. It is a failure of a system stuck in the past," he is expected to say in a speech later.

He argues that young people are not to blame for the youth unemployment crisis. Instead, he says the system fails to enable their participation in the labour market. "Instead, all too often it ends up putting young people on a path to a life not in jobs but on benefits," Milburn is set to say.

The report does not include potential solutions to the crisis, but these will come at a later date in a final report. The Conservative Party said Labour is too focused on its own internal leadership speculation to deal with the 'generational crisis' Milburn warned of.

Shadow Work and Pensions Secretary Helen Whately said: "Every policy choice Labour has made, from their jobs tax, capping apprenticeship funding, or trapping young people on welfare, has made it harder for a young person to take their first step into work."