In today’s world—marked by overlapping and accelerating challenges—the benchmarks of progress are constantly shifting. Yet youth employment remains one of the most reliable indicators of a country’s economic, political, and social health. When youth unemployment rises sharply, it serves as a clear warning sign of deep structural problems. In the United Kingdom, this rate has reached nearly 15 percent in 2025. As a result, Britain has fallen five places in the OECD youth unemployment rankings, now standing at 27th. This figure represents the highest level since the pandemic and underscores the severity of the economic pressures facing the country—pressures that demand urgent and serious action from the government.
The UK government’s employment policies have largely failed to account for a substantial segment of young people classified as “economically inactive.” This group—nearly one million strong—consists of young individuals who have neither acquired skills, nor pursued further education, nor participated in apprenticeships or vocational training programs. If left unaddressed, this population could impose an annual cost of approximately £24 billion on the government. Such a burden makes it imperative for the state to develop targeted, operational strategies and invest specifically in this demographic. However, the Starmer government appears to have folded this group into the broader category of job-seeking youth, assuming that general labor and worker-support programs are sufficient. Experts argue otherwise, emphasizing that economically inactive youth require psychological and social groundwork before meaningful labor-market integration can occur.
This oversight represents one of the most fundamental flaws in London’s current economic and employment strategies. The growing population of economically inactive youth is itself becoming a structural driver of unemployment. Ignoring this reality significantly undermines the likelihood of success for broader job-creation initiatives.
Another major challenge lies in the UK economy’s increasing polarization. Employment growth is concentrated at two extremes: high-paying specialist roles and low-wage, low-skill jobs. The erosion of middle-tier occupations—accelerated by automation and the expanding use of artificial intelligence—poses serious long-term risks for employment and economic stability. This hollowing-out of the labor market forces young entrants into insecure, poorly paid jobs, often discouraging them and pushing them toward economic inactivity instead.
Regional inequality further compounds the problem. Job opportunities remain heavily concentrated in London and the South East, while northern regions continue to experience deindustrialization and higher unemployment rates. This imbalance weakens national empowerment programs, as employment opportunities are unevenly distributed across the country. Consequently, the government continues to grapple with deeply rooted structural challenges in job creation.
The Labour Party has attempted to counter this wave of unemployment through economic revitalization and employment-growth initiatives. In practice, however, these programs have produced limited tangible results over the past year and appear largely performative. To be effective, the UK government must tailor its training and empowerment policies to regional needs while prioritizing the rapidly growing economically inactive population. This means investing seriously in mental health, social, and cultural programs—measures that, if implemented effectively, could yield positive outcomes and reduce long-term fiscal pressures.
In addition, London must improve the quality of apprenticeships and actively encourage young people to pursue specialized vocational training. Bridging the skills gap is essential if young workers are to access stable, adequately paid jobs over the long term. Only then can incentives for education and training align with real employment opportunities.
Ultimately, the Starmer government faces a formidable challenge. It must pull the economy out of stagnation, address the expanding inactive youth population, close budget deficits, and safeguard Britain’s economy amid intensifying trade and tariff conflicts. If Labour can correct these trends within a limited timeframe, its chances in the next election may improve. Failing that, the UK may soon be preparing for yet another change in government.
Translated by Ashraf Hemmati from the original Persian article written by Amin Mahdavi
Britain slipping down global league table for youth employment, says report | Unemployment | The Guardian Youth Employment Index 2025 - PwC UK Young people to lose benefits if they turn down work, says minister
