Number of young people not in work or education hits 11-year high
Published On Feb 27, 2025, 5:29 AM
Recent data from the Office for National Statistics reveals that the percentage of young people (aged 16-24) who are not in work, education, or training reached its highest level in over a decade, totaling 987,000 individuals, or 13.4% of this age group. This marks an increase of 110,000 from the previous year. The rise in Neet (not in education, employment, or training) figures is concerning, particularly as economic inactivity linked to poor mental health is a significant barrier for many. The government's Youth Guarantee initiative aims to engage all young people in opportunities to learn or earn, but stakeholders emphasize the need for comprehensive support to address mental health and complex challenges faced by this demographic. Experts call for more accessible apprenticeships and tailored programs to assist young people transitioning into the workforce.
Stock Forecasts
SERV
Positive
The rising Neet figures and the government's initiatives could affect sectors reliant on young workforce participation. Employment services and mental health support providers may see increased demand. Publicly traded companies or ETFs focused on workforce development, educational services, and mental health support might be favorable. However, companies that are directly influenced by youth employment trends could face challenges if these figures do not improve, impacting their workforce and profitability.
XLC
Positive
Companies that focus on mental health services or initiatives aimed at improving youth employment prospects are likely to benefit from increased government support and public awareness surrounding this issue. Investing in companies that provide educational tools or workforce integration programs may be fruitful. However, sectors lacking proactive measures to engage youth might encounter negative ramifications from these trends.
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