Government warned over 'lost generation'

06 May 2025

The government should urgently tackle the jobs crisis among young people or it will risk facing a 'lost generation', according to the British Chambers of Commerce (BCC).

In a report, the BCC says immediate action is needed to remove barriers preventing almost a million people in Generation Z from engaging with work, education and contributing to society.

The report highlights that the economic benefit of tackling the challenge of young people not in employment, education or training (NEETs) could add £69 billion to UK output.

It has called for the government to align its response to the issue across all departments as the problem is likely to worsen in the short term.

The report also calls for business to look for ways to open up employment opportunities to young people, as just 13% of firms currently have specific recruitment, training or retention plans for under 25s.

SMEs in particular are missing out on the benefits of a targeted approach to youth employment, the BCC adds.

Shevaun Haviland, Director General of the BCC, said: 'The UK's active workforce is rapidly ageing, while the number of young people who are not in employment, education or training is at its highest level for a decade.

'Generation Z face a double whammy of increasing barriers to entering the workforce, and reducing opportunities as the number of vacancies continues to fall.

'But research shows the longer we leave this pool of talent to drift away from the workplace the harder it becomes for them to engage.'