New Office for National Statistics (ONS) figures estimate that more than one million young people (13.5%) are now not in education, employment or training (NEET) — the first time this figure has exceeded one million since 2013.
The publication of former Labour minister Alan Milburn’s “Young People and Work: Interim Report” is therefore timely. It explains why NEET rates have rarely fallen below 10% since 2000 and continue to rise. Around 60% of NEET young people are economically inactive and not actively seeking work, largely due to increasing physical and mental ill-health. The report also notes that 60% of NEETs have never had a job, compared with 40% in 2005. Among EU countries, only Romania has a higher NEET rate. In the European Union (EU), only Romania has a higher NEET rate.
The report argues that worsening ill-health and reduced youth participation in the labour market have created a “national crisis of opportunity.” Although 84% of NEETs want work or training, opportunities have narrowed, with 1.6m mid- and lower-skilled jobs lost since 2005. Many young people also describe significant barriers to employment and training in Chapter 2 of the report.
The interim report estimates the annual cost of one million NEET young people at £125 billion and warns of a potential “lost generation” with numbers potentially reaching 1.25m within five years. It calls for a system-wide reset across education, employment, health and welfare, with full recommendations due in autumn 2026.
Chapter 2 also highlights growing pressure on graduates - with graduate hiring falling 8% year-on-year and graduate NEET rates climbing. CILT(UK) supports the Novus programme, founded in 2012, working with 17 universities and 11 corporate partners to support over 340 students, to improve employability and develop industry-ready graduates.
Chapter 3 identifies lack of adequate careers guidance as a key issue. CILT(UK) welcomes Department for Work and Pensions’ (DWP) plans to merge Job Centres and the National Careers Service into an integrated Jobs and Careers Service. CILT(UK) is also a founder of the Generation Logistics campaign, now in its fourth year, which has generated 1.37m website visits and 6.9 million social media engagements. Generation Logistics Week (22–26 June 2026) will invite schools to participate in the ‘Solve what Moves the World’ virtual work experience campaign.
The review finds strong evidence that vocational training and work-based learning improve employment outcomes but warns that access is narrowing. As outlined in CILT(UK)’s response to the “Post-16 Education and Skills” white paper, CILT(UK) continues to call for logistics and transport to receive greater recognition and funding within future skills policy.
Employers interviewed for the report described the Apprenticeship Levy as inflexible, with many wanting funding to support shorter courses, pre-apprenticeship activity and pastoral support. On average, employers spend only 42% of their levy funds. CILT(UK) therefore supports greater flexibility within the new Growth and Skills Levy, including support for sector-specific vocational qualifications and non-regulated training delivered through organisations such as CILT(UK) awarding organisation, the Learning Centre and PTRC.
Chapter 4 highlights concerns over fragmented local and regional skills systems. The report notes that responsibilities are spread across local authorities, mayoral authorities and DWP. CILT(UK) supports the creation of a national skills information and coordination hub to help employers, learners and providers navigate the system more effectively.
The report also warns that artificial intelligence and automation could further reduce entry-level opportunities traditionally used by young people to enter employment. In October, Skills England published the “AI skills for the UK workforce” report focused on the Industrial Strategy’s ten priority sectors, CILT(UK) would welcome further sector-specific analysis of AI’s impact on logistics and transport, while also emphasising the need to reskill and upskill existing workers through adult education.
Department for Work and Pensions (DWP): Recruitment Support and Youth Guarantee Incentives
The report acknowledges that employing unproven young people can be seen as risky for employers and that government policy should reduce risks and increase incentives. CILT(UK) therefore supports the Government expanding work experience and placement schemes in response to the report, alongside recent DWP engagement with industry representatives such as the recent Logistics Sector Recruitment Innovation Workshop.
DWP has recognised recruitment shortages across logistics and is encouraging employers in the sector to engage with the Government’s Youth Guarantee initiatives, including:
• £3,000 Youth Jobs Grant for eligible 18–24-year-olds from June 2026
• £2,000 Apprenticeship Incentive for SMEs hiring apprentices aged 16–24
• Fully funded apprenticeship training for eligible young people from August 2026
• Subsidised six-month placements through the expanded Jobs Guarantee
• National Insurance exemptions for employees under 21 and apprentices under 25
• Bespoke support for sector-based work academies and work experience programmes
• Access to local Youth Hubs and onboarding support for Universal Credit customer
• Administrative support onboarding Universal Credit customers to help you take on new starters smoothly.
Further information for employers, including DWP contact details, are available here: Recruit the right people with Jobcentre Plus.
A Department for Transport (DfT) Logistics Work Experience Guide for Employers is also available, developed by members of the Department for Transport (DfT) Freight Workforce Group (including CILT(UK)).
CILT(UK) looks forward to the final report later this year, which aims to outline a coherent participation system for young adults, alongside continued collaboration with industry stakeholders ahead of publication of the Government’s forthcoming freight and logistics plan.