The number of NEETs, young people not in employment, education or training, has fallen marginally below one million, the UK’s official statistics body said.

The Office for National Statistics estimated that about 981,000 people aged 16 to 24 were out of work in the three months to June 2026. That was down from 1,012,000 in the January-to-March period, a reading that had alarmed policymakers and economists about the state of the labour market.

The ONS has warned for several months that vacancy levels are at a five-year low. Alan Milburn, the government’s NEET tsar, has said the youth unemployment crisis is costing the UK economy about £125bn a year.

Prime Minister Andy Burnham has made tackling the NEET crisis a central part of his premiership and has pledged to give companies more incentives to open apprenticeships and hire younger workers.

Over the past month, Burnham has expanded Labour’s “Youth Jobs Guarantee” programme, which offers employers about £2,000 to take on young workers and ensures people receiving Universal Credit get six months of paid work. The scheme is aimed at giving young people a route back into work or training at a time when labour market vacancies remain subdued.

On Thursday, the government said it would roll out the scheme to areas with “some of the highest levels of youth unemployment”, including Essex, Greater Manchester and Birmingham.

Pat McFadden, the work and pensions secretary, said the government was “determined to turn the tide on the youth unemployment crisis” and said it had been “years in the making”.

“These latest figures underline why we are addressing youth inactivity as a priority,” he said. “The Jobs Guarantee is already supporting those most in need with the first young people to be supported by the scheme now in work, and our wider £2.5bn investment will help create almost a million opportunities to earn or learn.”

Milburn is due to publish a review of the crisis and possible solutions in the coming weeks.

Political divide on the NEET crisis

The official figures on youth unemployment came alongside a series of further statistics on migrant visa applications.

The Home Office said on Thursday that about 235,000 work visas were issued in the 12 months to June, while another 383,000 study visas were granted.

Reform UK officials have tried to link high youth unemployment with immigration levels, and the party has pledged to make it cheaper for employers to hire British workers than to take on employees from overseas.

The Conservative opposition has criticised the tax burden on employers and said it is preventing bosses from hiring young people.

Helen Whately, who shadows McFadden, said: “Something has gone badly wrong for a generation of young people. The opportunities that previous generations took for granted are not there in the way they once were.

“Labour have destroyed job opportunities for young people with their jobs tax and employment red tape. That has put the brakes on businesses hiring young people, giving us the highest youth unemployment in over a decade and nearly a million young people out of education, employment, or training.”