Foundation on Youth Futures offers their take on the most recent statistics on the labor market, released by the Office for National Statistics
In a groundbreaking report, researchers from the University of Manchester and University College London have investigated the root causes of worsening mental health among young people in England, focusing on the drivers of economic inactivity among those aged 16-24 not in full-time education.
The report, which is the first of its kind, reveals that the rate of economic inactivity among this demographic has risen sharply since 2021, reaching an alarming 20.1%. This means that around 820,000 young people are neither working nor actively seeking employment.
The primary driver of this increase in economic inactivity is long-term sickness, with mental health conditions being the most common cause connected to ill health among this group. Unlike previous recessions, such as after the 2008 financial crisis, the majority of young people not in education or work are not actively looking for jobs.
The report, which was highlighted by the Youth Futures Foundation, stresses the need for coordinated preventative mental health solutions involving health services, education, employers, and civil society. It also underscores the potential scarring effect of being out of work and education on young people, impacting their future prospects and wellbeing.
Additional context reveals that although employment levels for young people have slightly increased, the employment rate remains steady at around 51.2%, and unemployment has risen to 12.7% for youth in May 2025. Economic inactivity remains high, even if the total number slightly decreased in the last quarter, and is still elevated compared to pre-pandemic levels.
In summary, the rise in economic inactivity among young people not in full-time education is primarily driven by long-term sickness, especially mental health issues, rather than solely job market factors. This reflects a significant public health and social challenge affecting young people's engagement in employment and education in the UK post-pandemic.
- The surge in economic inactivity among 16-24-year-olds, not in full-time education, highlights the urgent need for comprehensive prevention strategies in both health-and-wellness and education-and-self-development sectors, targeting mental health issues that are the primary cause of long-term sickness among this demographic.
- The recent study emphasizes the connections between science, particularly in mental health research, and health services, education, employers, and civil society, as they all play a pivotal role in addressing the ongoing mental health crisis among England's young people and ensuring their future prospects and overall wellbeing.
