people walking on a busy cross street
A UK review suggests that traditional routes into employment have weakened. Daria Agafonova/Pexels

A major independent review commissioned by the Department for Work and Pensions has warned that changes in the labour market, including increasingly automated recruitment processes, may be making it harder for young people to secure work.

The interim report, Young People and Work, found that nearly one million people aged 16 to 24 across the UK are currently not in education, employment or training (NEET). Researchers said the number represents a growing economic and social challenge, with many young people struggling to gain a first foothold in the workforce despite wanting to work.

The review found that more than six in ten young people classified as NEET have never had a job, compared with around four in ten two decades ago. Published on 28 May, the report argues that traditional routes into employment have weakened at the same time as recruitment has become increasingly reliant on digital screening systems and automated processes.

Automated Hiring Under Scrutiny

According to the review, recruitment has become 'more remote, more automated and less human' over the past decade. The authors argue that young people who might previously have secured entry-level work through direct contact with employers are increasingly required to navigate online application portals, assessments, recorded interviews and algorithm-driven screening systems.

While the report does not blame artificial intelligence alone for rising youth inactivity, it suggests that technological changes have coincided with a broader decline in accessible entry-level opportunities. Researchers said employers are increasingly prioritising previous experience and formal qualifications, creating additional barriers for younger applicants trying to enter the labour market for the first time.

The review also highlights a sharp decline in apprenticeship opportunities. Apprenticeship starts among young people have fallen by more than 40%, reducing one of the most established pathways into employment for school and college leavers.

Who Is Being Affected?

The report estimates that 957,000 people aged 16 to 24 were NEET at the end of 2025, one of the highest figures recorded in recent years.

Researchers found that around 60% of those young people are economically inactive rather than unemployed, meaning they are not currently seeking work. The review argues this reflects a more complex challenge than traditional unemployment and often involves a combination of health, education and social factors.

Particular concern was raised for young people with disabilities, mental health conditions, caring responsibilities and those leaving care. The report warns that many face multiple barriers to employment and can become disconnected from both work and education for extended periods.

Despite concerns about disengagement, the review challenges assumptions that young people lack ambition. Survey evidence cited by the authors found that 84% of NEET young people said they wanted to find a job, education or training opportunity.

Health and Economic Pressures

The report identifies health as an increasingly significant factor behind youth economic inactivity. The proportion of NEET young people reporting a work-limiting health condition has risen substantially over the past decade, with mental health difficulties becoming a growing concern.

Researchers argue that youth inactivity should no longer be viewed solely as an employment issue but as one that cuts across health, education and welfare services. They warn that prolonged periods outside work can have lasting consequences for earnings, confidence and future career prospects.

According to the review, the cumulative annual economic cost associated with nearly one million NEET young people now stands at approximately £125 billion. A final report containing policy recommendations is expected later this year.

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