Young people across the UK are facing a growing employment crisis, with a new review warning that opportunities for work and training are shrinking rather than improving. The report, led by former minister Alan Milburn, warns that unless urgent action is taken, one in six young people could be out of work, education or training within the next five years.

Milburn described the situation as a “perfect storm” for young adults, arguing that systems designed to prepare people for adulthood are no longer working effectively.

“We are in danger of creating a lost generation,” he warned.

The findings come alongside newly released figures showing that more than one million young people in Britain are currently not in education, employment or training — commonly referred to as Neets — marking the highest level recorded in over a decade.

Milburn pushed back against stereotypes suggesting young people are unwilling to work, saying many are applying for dozens, sometimes hundreds, of jobs without success.

“For many young people, rejection has become the norm,” he said. “The issue isn’t a lack of effort — it’s a lack of opportunity.”

According to the review, six in ten young people classed as Neet have never held a job before, a significant increase compared to two decades ago. Despite this, the report found that the vast majority want employment, apprenticeships or training opportunities.

Official figures from the Office for National Statistics estimate there were just over one million Neets between January and March 2026, representing 13.5% of young people nationwide.

The data also showed around 400,000 young people were unemployed and actively searching for work, while more than 600,000 were classed as economically inactive and not currently looking for employment.

The report paints a bleak picture of the changing jobs market, highlighting a sharp fall in entry-level positions over recent years. Around 1.6 million mid- and lower-skilled jobs have reportedly disappeared from the economy over the past 20 years, while vacancies in sectors such as hospitality have dropped dramatically since 2022.

Researchers estimate the wider economic cost of youth unemployment and inactivity now stands at around £125 billion annually. This figure includes lost productivity, lower future earnings, reduced tax revenue and increased spending on benefits and healthcare.

Milburn argued that many families now fear younger generations will not enjoy the same opportunities as those before them.

“The old idea that hard work guaranteed progress no longer feels true for many young people,” he said.

Prime Minister Keir Starmer described the findings as “sobering” and said ministers would consider further measures to address the crisis.

The government says it is already introducing major employment reforms aimed at creating 500,000 opportunities for young people, including expanded apprenticeships, subsidised work placements and new grants for employers hiring younger workers.

However, opposition parties have criticised Labour’s economic policies, arguing that rising business costs and tax pressures are discouraging companies from recruiting younger staff.

The report concluded that there is no single cause behind the crisis. Instead, it pointed to a combination of factors including the long-term impact of the pandemic, changes in the labour market, rising living costs and the growing influence of smartphones and social media on young people’s lives.

Business leaders also warned that rising employment costs are making it harder for companies to take on inexperienced workers, particularly in sectors such as retail and hospitality where many young people traditionally find their first jobs.