Report

Local labour market buoyancy holds the key to solving the UK’s NEET ‘crisis’

Think tank: City-REDI

Author(s): Professor Donald Houston

August 26, 2026

This report from UK think tank City-REDI examines the geographic inequalities in young people who are not in employment, education or training across the UK.

This report argues that the UK’s rising NEET rate is not just a youth skills or health issue, but a geographical and economic one, with large differences between local areas driven primarily by the strength of local labour markets.

Analysis of a new dataset covering 179 UK regions found that local unemployment is a much stronger predictor of youth NEET rates than poor qualifications or health, suggesting that job availability and economic opportunity are key factors in whether young people become disengaged from work, education or training.

The report concludes that national, supply-side policies alone will not solve the NEET crisis, and calls for more localised, devolved approaches that combine skills and health support with job creation, economic development and employer incentives tailored to local labour market conditions.