UK Youth Unemployment Soars to 11-Year High Amid Rising Job Costs and Tough Market
February 18, 2026
Poppy Blackman, 22, has been unemployed since January 2025 in London. She applies to 50 jobs monthly, shifting sectors due to the hard job market. Official figures show UK youth unemployment for 16-24 year-olds climbed to 16.1% in late 2025, the highest since 2014. This surpasses the EU average of 14.9%. Overall UK unemployment is 5.2%. Alan Milburn, chair of the government's Young People and Work review, warned the rise is a “long-term” risk that could leave a generation without jobs. He said 45% of 24-year-olds not in education or employment have never worked, risking lifelong benefits dependency. Rising employer costs are blamed for shrinking entry roles. Since April 2024, employer national insurance contributions rose from 13.8% to 15%, and the threshold dropped from £9,100 to £5,000. The minimum wage also rose by 6.7% in 2025 and 4.1% in April 2026. This means hiring a worker aged 21+ costs 15% more than two years ago. Simon French, chief economist at Panmure Liberum, said the national living wage and new employment rights added a heavy cost burden, making firms freeze hiring. Recent Oxford graduate Jack, 21, has applied to over 100 jobs with little response. He says, “Entry-level roles want you to already have a foot in the door.” AI has not yet greatly affected youth jobs, says PwC economist Jake Finney. Yet young people feel locked out of opportunities after disrupted education and early work due to the pandemic. Saalim Elhaj, 23, shifted from architecture to timber framing apprenticeship due to scarce graduate jobs. Julie Leonard of Shaw Trust said, “This generation has had a raw deal,” facing big economic and social changes early in their careers. The UK government’s upcoming summer report may address these urgent youth employment challenges.
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Tags:
Youth unemployment
Uk Job Market
Employment Costs
Job Applications
Labour Policies
Economic challenges
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