Youth Unemployment Hits Decade-High – What’s Next For Cambridgeshire and Peterborough?

February 28, 2025

Youth unemployment in the UK has surged to its highest level in more than a decade, with fresh data from the Office for National Statistics (ONS) showing that 987,000 people aged 16-24 were not in education, employment, or training (NEET) between October and December 2024. The figure represents 13.4% of this age group, marking an increase of 110,000 from the same period the previous year.

The sharp rise has reignited concerns among businesses, policymakers, and education providers about the widening gap between young people and the labour market. With a sluggish economy and increasing job insecurity, many are calling for urgent interventions to prevent a long-term employment crisis.

The Barriers to Employment

While youth unemployment is often linked to market demand, research suggests that young people are actively seeking jobs but facing multiple obstacles. A study by The Work Foundation at Lancaster University found that many young job seekers are struggling due to a lack of stable opportunities, while The King’s Trust reports that 31% of NEETs cite poor mental health as a key barrier to work. Meanwhile, 19% of young people surveyed said they were applying for jobs daily without success.

The combination of insecure work, a competitive labour market, and rising mental health challenges has left many young people in a cycle of rejection and instability, with limited support to help them transition into meaningful employment.

Government and Local Responses

In response to growing concerns, the government has introduced the Youth Guarantee, a scheme aimed at ensuring all 18- to 21-year-olds in England have access to education or training opportunities. In addition, £45m has been allocated to eight Youth Trailblazer schemes across the UK to pilot new approaches to tackling youth unemployment. Cambridgeshire & Peterborough Combined Authority (CPCA) is a key partner in one of these trailblazer projects, focused on targeted training and employment support.

At a local level, the Cambridgeshire & Peterborough Local Skills Improvement Plan (LSIP) is working to bridge the gap between young people and the skills employers need. Through collaboration with businesses, educators, and training providers, the LSIP aims to equip the regional workforce with skills for emerging job sectors.

Community organisations such as Inspire2Ignite are also playing a role in connecting young people with opportunities and encouraging businesses to take a more proactive approach in supporting early-career workers.

What Next?

With businesses continuing to report recruitment challenges and young people struggling to enter stable employment, the need for targeted action is greater than ever. Ensuring access to high-quality training, stronger links with employers, and better mental health support will be crucial to reversing the rising NEET figures.

Charlotte Horobin, CEO of the Cambridgeshire Chambers of Commerce, emphasised the importance of employer-led initiatives in tackling youth unemployment:

“Businesses across our region are facing persistent skills shortages, and we must ensure that young people have clear pathways into employment. The LSIP is focused on bringing businesses and education providers together to create meaningful opportunities that meet industry needs. Now is the time for employers to play an active role in shaping the workforce of the future.”

The Cambridgeshire & Peterborough LSIP is working closely with employers, education providers, and policymakers to address skills gaps and improve employment outcomes. If you are an employer who would like to better understand the situation and contribute to the solution, the LSIP would be pleased to hear from you. Please contact us at lsip@cambscci.co.uk.

For further insights into labour market trends and skills development strategies, the LSIP hosts a Quarterly Labour Market Webinar. Access past discussions at https://www.cambridgeshirechamber.co.uk/webinars/. To register for the next session, again, please reach out to lsip@cambscci.co.uk.