Deep poverty fuels UK youth job anxiety and economic fears

Published: 27 January 2026. The English Chronicle Desk. The English Chronicle Online.

A growing number of young adults in the UK are experiencing severe anxiety about their career prospects and long-term economic stability. Research from the King’s Trust indicates that deep poverty concerns among youth are intensifying as they enter an unstable labour market, with seven in ten feeling regret about starting their professional lives under current conditions. The study revealed that more than a quarter of 16 to 25-year-olds believe they may fail in life, reflecting an alarming trend of insecurity and financial apprehension among the country’s youth.

Jonathan Townsend, chief executive of the King’s Trust, stated that the research highlights the widespread unease among young people who face structural barriers in employment. “This new research shows young people today are deeply concerned about their job prospects and futures, particularly those already facing the greatest barriers,” he said. The YouGov survey, which included 4,097 respondents, showed 73% of young adults were anxious about career prospects, citing insufficient job availability and rising economic instability as key stressors.

The study, sponsored by TK Maxx, formed part of the charity’s 50-year social impact report, which examines challenges affecting young people entering the workforce. The findings also indicate rising concern about technology’s impact on employment, with 59% expressing fears about artificial intelligence reducing their future job opportunities, up ten percentage points from last year. Townsend added that the combination of AI disruption, weak job markets, and economic volatility was significantly influencing young adults’ sense of career security.

Barry Fletcher, chief executive of the Youth Futures Foundation, described the findings as “a helpful but concerning snapshot of how young people are feeling about their future opportunities.” The survey highlighted widespread unpreparedness, with three in five respondents feeling inadequately equipped for work and 64% believing entry-level roles were largely insecure.

Additionally, the survey revealed skills gaps, showing one quarter of respondents lacked necessary qualifications for their desired career paths, while 28% reported insufficient work experience. Regional disparities were also noted, as 31% identified a lack of local job opportunities as the primary barrier to achieving their career goals, a rise of seven percentage points from the previous year.

National statistics corroborate these concerns. Approximately 12.5% of UK youth aged 16 to 24—around 925,000 young people—were not in education, employment, or training (Neet) last year. International comparisons further suggest the UK is underperforming in youth employment outcomes. The PwC Youth Employment Index 2025 ranked the UK 27th out of 38 OECD countries, citing elevated Neet rates and weaker transitions from education to work compared with peers.

The King’s Trust noted that economic uncertainty, rapid technological change, and limited job growth have measurable effects on youth confidence and future expectations. Townsend emphasised that worries about employment prospects are directly linked to wellbeing, stating, “Concerns about employment prospects are inextricably linked to wellbeing.”

Government response focused on alleviating these anxieties. Work and Pensions Secretary Pat McFadden highlighted measures to strengthen youth employment through a £1.5bn investment and the youth guarantee programme. He assured that opportunities to earn, learn, and gain work experience would grow, emphasizing that “when young people succeed, Britain succeeds.”

Experts warn that without urgent attention to youth unemployment and deep poverty, the long-term economic and social impact could be substantial. The research portrays a generation entering adulthood amid financial stress and uncertainty, facing significant barriers to stability and self-sufficiency.

The study also points to the psychological toll, with young people reporting feelings of unpreparedness, anxiety, and diminished confidence. Many expressed concern that technological disruptions, particularly automation and AI, could worsen already limited employment prospects. Townsend emphasised that solutions must address both skills development and equitable access to jobs, highlighting a multifaceted approach to tackling youth insecurity.

Education, training, and government-led initiatives are seen as crucial in reversing these trends. Analysts suggest combining policy support with employer engagement to ensure young adults receive both the practical experience and the confidence required to succeed. Fletcher noted that long-term structural investment is necessary to provide young people with reliable career pathways and reduce economic vulnerability.

Overall, the research underscores an urgent need for action to address the intertwined issues of deep poverty, job insecurity, and mental health pressures among UK youth. The evidence indicates that a coordinated response from government, educators, and industry is essential to prevent a lost generation facing diminished economic prospects and prolonged anxiety.

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