CEO blog: Breaking the cycle of youth unemployment

When you’re a young person, looking to the future should be exciting and full of possibility. But for many young people, the reality is far from this. Youth unemployment is rising sharply, with the number of young people not in education, employment or training (NEET) approaching one million — an increase of 300,000 in the last year alone.

The reasons for this are varied. For starters, the job market is incredibly difficult to break into. On a recent Business in the Community visit to south London, I met two college graduates who shared how they had applied for hundreds of roles without even receiving a rejection email. This kind of experience impacts confidence and fuels feelings of inadequacy. The King’s Trust TK Maxx Youth Index report reinforces this picture, showing that almost a third of NEET young people have experienced mental health issues due to unemployment, and half of 16-25-year-olds feel hopeless about their future.

The feeling of hopelessness can drive long term unemployment. The Office for National Statistics (ONS) reported that 58% of NEET young people (552,000) were economically inactive between July and September 2024, meaning they had stopped looking for work altogether. To feel like you’ve already failed before you’ve even started is devastating — not just for the individuals affected, but for the wider economy too. This hopelessness feeds young people’s lack of confidence to apply for jobs, and so the cycle continues.

Another contributing factor is young people’s lack of vital interpersonal skills. Employers have highlighted a gap in ‘soft skills’ like communication, teamwork, and leadership in young people coming into the workforce. The dependence on digital interaction is a big driver of this. We know from our Generation Isolation research that young people are increasingly spending most of their free time on their phones, and significant amounts of time alone and in bedrooms, not interacting with others or developing the soft skills that will enable them to assert themselves in professional settings.

So, how can we turn this around? Well, I firmly believe that there is hope and evidence to show that if we empower young people, they can – and will – rewrite their story!

Spaces like Youth Zones can help flip this feeling of hopelessness on its head. As well as giving young people safe spaces to build skills, grab opportunities and have fun – Youth Zones also run employability-focused programmes to directly tackle barriers to employment. At Hideout Youth Zone in Manchester, a special employability event connected local employers with around 200 of our older members, which led to every single young person securing a work experience placement. Youth Zones also run initiatives like Work Safaris which give young people the chance to visit workplaces across different industries and develop essential skills in communication, teamwork, and professionalism, whilst demystifying the physical workplace itself.

While these structured programmes are valuable, the simple act of a youth worker taking time to listen and guide a young person can be life-changing. Take Kunwal from Manchester Youth Zone — initially shy, isolated and uninterested in education, youth workers encouraged her to stay open-minded. When an HR apprenticeship opportunity came up, Kunwal applied and succeeded, with youth workers supporting her every step of the way, from interview prep to building confidence. Now, she’s thriving and employed, with vast possibility ahead.

Youth unemployment is complex, but we know much of it stems from hopelessness and a lack of confidence. Youth Zones, and youth centres more broadly are an untapped part of the solution. They offer unique spaces where young people can express themselves, develop new skills, explore hidden talents and connect – both with others and themselves. These spaces, along with the important relationship with youth workers, provides holistic support that empowers young people to learn and grow and most importantly, to believe in themselves.

This belief combined with the skills they’ve learned, puts them in a great position to get the job they really want – and deserve.