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Record Number of Young Britons Fear Long-Term Unemployment, Report Finds

A new report reveals a significant drop in confidence among 16- to 21-year-olds in England, with a record number fearing long-term unemployment. Many young people no longer believe hard work will guarantee future success and security.

  • Confidence in future success among 16-21 year olds has fallen sharply since 2015-17.
  • The proportion fearing long-term unemployment has more than tripled to 7% over the same period.
  • Only one in four 16-29 year olds believe everyone has a fair chance to succeed through talent and hard work.
  • Rising youth unemployment, housing costs, and poor mental health are cited as contributing factors.
  • The government has announced a £2.5 billion youth employment support package.

A growing number of young people in England are losing faith in their future prospects, with a record proportion expressing concerns about long-term unemployment, according to a recent report by the Institute for Public Policy Research (IPPR). The analysis, which includes data from the Office for National Statistics, indicates a sharp decline in confidence among 16- to 21-year-olds regarding their chances of success compared to a decade ago.

The IPPR highlights a significant shift in attitudes, noting that younger individuals are less convinced than older generations that hard work will ultimately be rewarded. Only 25% of 16- to 29-year-olds believe that everyone has an equal opportunity to advance as far as their talent and effort will allow. This contrasts sharply with 35% of 50- to 69-year-olds and over 40% of those aged 70 and above who hold this view.

The report underscores a concerning trend: the proportion of 16- to 21-year-olds rating their chances of future success at 20% or less has tripled from 2% in 2015-17 to 6% in 2023-25. Over the same period, the share who anticipate an 80% or higher chance of experiencing long-term unemployment in their lifetime has also more than tripled, reaching 7%. The IPPR suggests this erosion of confidence is not merely a social issue but could have detrimental economic consequences by discouraging young people from pursuing education, working diligently, and saving.

Several factors are identified as potential contributors to this decline in optimism. The IPPR points to the increasing visibility of austerity's effects, the evolving online information landscape shaped by personalised algorithms, and a noticeable deterioration in young people's mental health during the mid-2010s. The think tank also suggests that young people may be making rational assessments based on prevailing conditions, such as rising youth unemployment and escalating housing costs.

Policymakers are increasingly concerned about the challenges facing young people, particularly with the number of 16- to 24-year-olds not in education, employment, or training (NEET) recently surpassing one million for the first time in a decade. Former Labour minister Alan Milburn is currently conducting a government review into how to reverse this trend, having previously warned of a potential 'lost generation' and a projected 25% rise in NEETs to 1.25 million by 2030 if decisive action is not taken. The government has responded by announcing a £2.5 billion youth employment support package aimed at assisting nearly one million young people into work or training, alongside an expansion of youth hubs across Great Britain to offer skills, job, and housing support.

Why this matters: This report highlights a critical challenge for the UK economy and society, as a disillusioned young generation could impact future productivity and social cohesion. Addressing these concerns is vital for long-term national prosperity.

What this means for you: What this means for you: If you are a young person or have young family members, these trends underscore the increasing competition and challenges in securing stable employment and housing. For employers, it highlights the importance of fostering opportunities and support for young talent. For all citizens, it signals potential future economic and social strains if this issue is not effectively addressed.

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