The UK Government has released worrying data about our youngest generation now leaving school and entering the workforce. The Work and Pensions Secretary Pat McFadden confirmed that nearly one million 16–24-year-olds are currently out of work or education. This alarming statistic marks the highest numbers in over a decade.
In light of this, the UK government is launching an independent review into the growing number of young people not in education, employment, or training.
This is a crisis that demands bold solutions not just from the UK government or educators but also from employers and business leaders.
What can employers do to help young people out of work and education enter these
World of work specialists, Instant Offices, shares expert insights and actionable solutions to help employers understand the unprecedented barriers young people face in entering education and employment. Their expert advice also addresses the risk of not engaging the next generation, and the support employers can provide.
Unlocking opportunity for the UK’s future workforce
While the digital fluency and creativity of today’s young professionals hold immense promise, many feel locked out of the world of work.
While the UK government’s enquiry will reveal further insight into why young people are not working or studying current studies show that a quarter cite long-term illness or disability as their biggest obstacle, and 80% of Universal Credit health claims are tied to mental health or neurodevelopmental conditions (GOV.UK). This is evidence of a “crisis of opportunity” that Work and Pensions Secretary Pat McFadden describes as urgent and deeply troubling.
Ben Wright, Head of Global Partnerships at Instant Offices, comments:
“What we’re witnessing isn’t just a short-term disruption, it’s a seismic shift. Young people are adapting to market volatility, post-pandemic change, and intensified competition. They are dealing with all this while navigating mental health pressures and a rapidly evolving skills landscape. It’s clear that without targeted support, businesses risk losing out on fresh perspectives, digital innovation, and the future leaders who will define their industries.”
Why are so many young people out of work and education
- Mental and physical health obstacles: Long-term illness, disability, and neurodevelopmental conditions are increasingly common, compounded by high rates of burnout and anxiety.
- Unclear career pathways: Many young people report uncertainty about advancement and lack visible roadmaps for growth.
- Pandemic aftershocks and changing workplaces: The shift to remote work, digital-first processes, and new technologies has left many without adequate mentorship or connection.
- Rigid corporate culture: Inflexible work models, lack of well-being support, and unclear expectations further alienate young talent.
Impact on UK Industries
- Skills gaps: If the trend continues, businesses across tech, retail, fashion, and professional services could face critical shortages of digital proficiency, creative thinking, and innovation.
- Reduced diversity: Fewer young people entering work means less generational diversity, potentially stifling new ideas and perspectives.
- Economic ripple effects: Persistent disengagement risks slowing growth, reducing productivity, and increasing social and healthcare costs for all sectors.
Ben Wright adds:
“Industry needs next-gen thinkers – those who connect digital trends with real-world business outcomes. We need to reimagine our talent pipelines, challenge outdated attitudes, and invest in mental health and development like never before.”
How employers can support young talent
- Invest in mentorship
Create dynamic mentoring programs pairing young employees with experienced leaders, fostering trust and helping new hires navigate workplace expectations. - Define career pathways
Outline clear development plans, benchmarks, and regular reviews so young talent knows how to progress—and what’s needed to succeed. - Prioritise wellbeing and flexibility
Offer flexible working arrangements, mental health resources, and genuine care for individual wellbeing to attract and retain the best talent. - Spark cross-department collaboration
Encourage exposure to different business units through networking, job shadowing, and cross-functional projects, broadening skills and perspective. - Champion communication and feedback
Implement systems for regular, meaningful feedback and promote open dialogue so young employees feel seen, heard, and empowered.
Ben Wright concludes:
“Practical solutions – mentoring, clear career maps, flexible working – aren’t just perks, they’re business-critical. The companies that adapt will not only attract top Gen Z talent, but will build resilient, future-focused organisations ready for what’s next.”
