The Milburn Review paints a troubling picture of a labour market increasingly failing young people. The independent Review, led by Labour grandee and former Treasury minister, Sir Alan Milburn, warns of a “lost” generation in its interim report, published yesterday (May 28). The report argues that youth unemployment can no longer be understood as a temporary economic setback, but rather as a growing detachment from meaningful participation in work itself. In doing so, Milburn highlights a deeper structural problem: a labour market that is becoming progressively less accessible to those attempting to enter it.
This reality stands in stark contrast to the persistent narrative that young workers are the “lazy” generation — a stereotype that does little to support their integration into employment. Across social media, graduate forums, and public debate, young people have repeatedly voiced frustrations with prolonged unemployment and an increasingly demoralising job market. Stories of submitting dozens, or even hundreds, of applications only to receive automated rejections or no response at all, point towards systemic barriers rather than individual failings.
Set against the backdrop of the ongoing cost-of-living crisis, rising youth unemployment has become an increasingly urgent concern. In February 2026, unemployment among 16–24-year-olds rose to 15.8%, up from 14.6% the previous year. In London, despite its concentration of economic output and employment opportunities, unemployment for this age group reached a striking 24.6%. Alongside declining numbers of entry-level roles and graduate scheme vacancies, these figures suggest a labour market that is no longer creating viable pathways into work for many young people. Addressing these barriers is essential, not only for improving future employment prospects, but also for safeguarding wider social wellbeing and long-term economic growth.
Earlier this month, the Policy Liaison Group held a roundtable on the parallel Keep Britain Working Review with Dame Carol Black, author of the original government report on workplace wellbeing, ‘Working for a healthier tomorrow’. The session directly addressed the plight of young people. This blog offers a guide to the current policies designed to get NEETs (not in education, employment or training), the subject of an ongoing inquiry of the Work and Pensions Select Committee, followed by a brief summary of the interim report, and an account of the key NEET-related insights from our roundtable, chiefly a lack of inclusivity within existing frameworks for young people.
Current approaches to youth unemployment
In spring 2026, the Government began the delivery of the Jobs Guarantee scheme, which gives young people access to:
- Guaranteed paid jobs for long-term unemployed young people, giving eligible 18–21-year-olds a route into work after earlier support has failed.
- Fully funds 6-month minimum wage placements, with 100% of employment costs covered for a 25-hours-a-week placement so that employers can take on young workers without financial risk.
- Wraparound support, helping build confidence, gain work experience, develop skills and successfully move into sustained long-term employment.
Roll-out has been fairly slow. Ministers have assured 55,000 job placements over the next three years. The government also hopes the reformed Growth and Skills Levy will improve workforce participation and skills development. Based on the Apprenticeships Levy, introduced by the Conservatives, the Levy requires employers with an annual pay bill exceeding £3 million to contribute 0.5% of their payroll into a central fund that they can subsequently draw down against to finance approved apprenticeship training and assessment costs. With the aim of getting 60,000 young people into work and 50,000 new apprenticeships, the reformed levy:
- Fully covers the costs of apprenticeship training by abolishing the 5% co-investment rate, intended to open up opportunities for both young people and smaller local businesses.
- Offers businesses £3,000 for every person they hire between the ages of 18-24 who has been on Universal Credit and looking for work for six months.
- Makes a £2,000 ‘Apprenticeship Incentive’ available for each new 16 to 24-year-old apprentice taken on by a smaller business.
The Milburn Review - helping the 58% into work for the first time
Sir Alan Milburn has been unambiguous about the scale of the challenge, telling the Times, “Six in ten have never had a job. Twenty years ago, that figure was closer to four in ten. Detachment is no longer temporary. For too many young people it is becoming permanent. We are at risk of a lost generation”. Against this backdrop, the Review calls for greater emphasis on technical and vocational education pathways, arguing that schools continue to over-prioritise university routes despite growing evidence that many young people feel unprepared for employment and practical workplace environments.
- Milburn highlights the continued decline of entry-level opportunities and the “death of the Saturday job”. Young people increasingly lack basic employability skills before entering the labour market.
- Employers must offer greater flexibility and support for younger workers, particularly in response to rising levels of poor mental health among young people, which the report identifies as a major driver of economic inactivity.
- The report also stresses the importance of reducing practical and financial barriers preventing young people from entering or sustaining employment, particularly for those from disadvantaged backgrounds or with additional support needs.
- Finally, the Review challenges the perception that young people lack aspiration, citing evidence that the overwhelming majority of NEET young people want employment or training opportunities but face systemic barriers preventing meaningful participation in work.
Young people difficulties persisting in the workplace
Participants at the PLG’s roundtable highlighted the lack of attention to retaining staff, including graduates, once they’ve been recruited, which points to a lack of attention being paid towards inclusion. This imbalance manifests itself in several ways:
The experience paradox
Previous experience is frequently listed as “preferred”, but is often required in practice, even for entry-level jobs. This is worsened by declining opportunities to gain meaningful practical experience, as identified by the Milburn Review. A 2024 study conducted by Virgin Media found that seven in ten young jobseekers had been rejected from entry-level positions due to a lack of experience. Meanwhile, graduate scheme recruitment processes often rely heavily on psychometric testing, which can quickly eliminate large numbers of applicants at the initial stages.
High performance expectations and similar growth to older peers
As discussed in our roundtable, there remains a persistent bias against young workers in many workplaces, with stereotypes portraying them as “lazy”, “entitled”, or unwilling to work. Despite the lack of objective evidence supporting these claims, such perceptions continue to shape recruiter attitudes. As a result, younger generations are increasingly branded as unemployable, while often being subjected to unrealistic expectations in professional environments.
Many young people report feeling undervalued and patronised at work. Nearly half (49%) stating that their age has been a factor in missing out on a promotion or job opportunity. These biases have a significant impact on the wellbeing of young employees, contributing to a workplace culture in which they feel unsupported and overlooked. Younger employees experience disproportionately high levels of work-related stress compared with their older counterparts, affecting both productivity and long-term organisational growth. Overcoming this challenge requires employers to actively listen to young people and better understand their experiences in the workplace. Better line management is an intrinsic part of improving conditions.
Communication gaps from increased at-home working, plus ‘always on’ culture
Since the pandemic, the UK and global workforce has witnessed a significant spike in working from home (WFH). Many older and more established professionals have adapted well to hybrid working, disadvantaging younger workers who depend on more experienced coworkers for their professional growth. The increasingly digitalised workspace has also led to hyperconnectivity and an ‘always on’ work culture, creating the sense of an infinite workday for employees. The boundaries of being on or off work become blurred as emails continue to be sent and received beyond the workday. ‘Always on’ culture is not confined to a particular demographic, but younger workers are less able to re-assert those boundaries in order to maintain a healthy work-life balance.
For organisations focused on long-term workforce sustainability, these challenges reinforce the need to prioritise workplace wellbeing strategies that support not only productivity, but also inclusion, development, and retention across all career stages.
