UK Youth Jobs Hit Hard Amid Rising Unemployment

Published: 15 December 2025. The English Chronicle Desk. The English Chronicle Online.

Young people in the UK are facing the heaviest impact from the ongoing jobs downturn, according to a new report from the Resolution Foundation. The thinktank warned that rising unemployment was increasingly affecting both graduates and non-graduates, as employers continue to cut hiring in the public and private sectors. Official data due this week is expected to show the UK unemployment rate rising slightly from 5% in September to 5.1% in October, highlighting the growing challenges for younger workers seeking employment.

Economists in the City anticipate that the Office for National Statistics’ update on Tuesday will confirm this upward trend. The data release comes ahead of further economic updates, including the latest UK inflation figures on Wednesday and an interest rates decision on Thursday. While health-related inactivity has received attention in public debates, Resolution Foundation principal economist Nye Cominetti emphasised that rising unemployment, particularly among young people, remains a critical but often overlooked factor in the current jobs crisis.

“Public discussions have focused heavily on inactivity caused by health issues, yet rising unemployment is driving the UK’s current jobs downturn,” Cominetti explained. “Young people are once again at the heart of this challenge, just as they were following the financial crisis and the Covid pandemic. Policymakers and employers must urgently step up support.”

While some forecasters, including the Bank of England and the Office for Budget Responsibility, suggest that unemployment has peaked, others warn that it could rise to 5.5% next year due to higher taxes, sluggish growth, and low consumer confidence. The latest insight into the labour market comes amid modest improvements in inflation, which is expected to ease slightly from 3.6% to 3.5% in November. Economists predict this may prompt the Bank of England’s monetary policy committee to lower interest rates from 4% to 3.75%.

Bank governor Andrew Bailey, who previously voted to keep rates steady, has expressed growing concern over the slowing economy and rising unemployment. Ruth Gregory, deputy chief UK economist at Capital Economics, highlighted the weak growth trajectory: “It is striking that the economy has expanded in only one of the past seven months. October’s 0.1% contraction leaves the economy no larger than it was in April.”

The Resolution Foundation linked most of the rising unemployment to broader economic weakness. Ministers are increasingly concerned about the youth labour market, as nearly one million 16- to 24-year-olds are currently not in education, employment, or training (NEET). A recent PWC report further indicated that the UK slipped in international youth employment rankings, dropping four places to 27th out of 38 OECD nations.

The thinktank estimated that the working-age employment rate fell by one percentage point from October 2020 to September 2025, representing 415,000 fewer workers. “The decline in employment over the past five years is entirely due to higher unemployment, not rising inactivity, and young people have borne the brunt,” the report noted. Despite this, the participation rate—reflecting the proportion of people either working or actively seeking work—remains high at 79.5%, above the pre-pandemic level of 79.2% and close to the record 79.9% recorded in 2023.

The report’s findings underscore a pressing need for targeted policies to support youth employment in the UK. With economic growth slow and hiring trends subdued, the challenge for younger workers is set to continue, raising urgent questions for policymakers, businesses, and educational institutions alike. Addressing this issue will be critical to ensuring that the next generation can navigate the labour market successfully amid ongoing economic uncertainty.