Across the UK, almost one million 18- to 24-year-olds are not in education, employment or training (NEET). In London, the data is even more stark, with a youth unemployment rate of 24.9% – considerably higher than the national average of 16.2%.
At Maximus, we are seeing the rise in youth unemployment firsthand. Through our delivery of the Restart Scheme in East and South East London, we have observed a clear and sustained shift in the age profile of participants. Those aged 18–24 now make up the largest share of new starters — accounting for over a third of all new participants — tripling in size since 2022.
Ahead of Youth Employment Week, I discussed the issues facing London whilst hosting a roundtable in the Houses of Parliament alongside Calvin Bailey MP, Member of Parliament for Leyton and Wanstead. The session heard perspectives from education providers, think tanks, charities and businesses on some of the key drivers behind rising youth unemployment in London, as well as insights into how this issue can be tackled.
Everyone can agree that the reasons for youth unemployment are complex. Attendees at the roundtable cited a lack support for school and college leavers, with a fragmented system leading to individuals falling through the gaps. Others highlighted a lack of skills, experience or confidence to secure employment, with others simply unaware of the options available to them. Young people face a range of practical challenges too, including transport, early‑month finances and childcare or caring responsibilities.
But the most significant change has been in the rise of poor health. Across the UK, around half of young people who are NEET have a long-term health condition, whilst one in five experience poor mental health. In London alone, around 65% of young people experience mental health difficulties – the highest of any age group in the region. Low self-esteem, a lack of confidence and insufficient support for neurodiversity are also common.
This disproportionate rise in poor mental health for 18 to-24-year-olds can be attributed to several factors, from social media to financial pressures and a lack of early intervention. For many, unemployment has the greatest impact on their mental and physical health.
Securing accessible routes into work is therefore essential for both employment and health outcomes. But when the number of vacancies has decreased significantly across the capital since 2022, securing that first job is becoming more challenging. Inflationary pressures are higher in London, with a dramatic impact on the retail and hospitality industries – typical entry points into work for young people living in London. The number of sales and customer service positions advertised has decreased by more than half over the last four years.
Yet while the problem has become acute, young people still want to find work. We see this desire every day at our sites across London. Over 25,000 18–24-year-olds have accessed our support across our health, skills and employment programmes – and we are proud that so far, almost half have achieved job starts. But there is far more to do.
It’s vital we work with partners in the capital to identify solutions to the employment barriers young people face.
Early intervention is key
We welcome the government’s renewed commitment to supporting young people into employment, as well as the insights gained from the recent Milburn Review. Initiatives like The Youth Guarantee, investment in apprenticeships and skills programmes, as well as place-based trailblazer and pilot schemes will make a real difference. As one of the UK’s largest employment support providers, we support the youth employment package and stand ready to play our part in its success.
A consistent theme, from both the Milburn review and our roundtable, is that early intervention is essential – and this can be more easily achieved through joining up employability, education. skills, health and welfare. We need to enable quicker access to support. It isn’t acceptable that it can take years from the point of someone leaving school or claiming benefits to accessing support from an employability specialist or local authority service. By acting earlier, and creating more access points, we can deliver stronger outcomes and avoid individuals dropping out of the system or withdrawing from the labour market.
Providing individualised support is equally important. The systems they have to navigate are complex. Many young people might be unaware of the support available to them, whilst others might be unsure which jobs align with their skills or personal circumstances. It’s vital we deliver personalised, one-to-one guidance to help people understand the different career routes available to them and the types of job their skills and interests align with.
Critically, this also involves working alongside employers. On our programmes finding jobs for young people often isn’t the challenge – it is sustaining and progressing. We would encourage more wraparound support for young people and employers when someone enters the work, including mentoring, mental health support and “rapid response” problem‑solving to create inclusive workplaces that build confidence, improve health and support young people through those challenging first few months in work.
Right now, one in four young Londoners are actively seeking work. As I meet with employers and partners, I’m confident that together, we can help them get there.
