{"id":449108,"date":"2026-05-28T07:59:09","date_gmt":"2026-05-28T07:59:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/449108\/"},"modified":"2026-05-28T07:59:09","modified_gmt":"2026-05-28T07:59:09","slug":"uk-risks-lost-generation-of-young-people-out-of-work-first-time-buyers-face-toughest-time-since-financial-crisis-business-live-business","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/449108\/","title":{"rendered":"UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live | Business"},"content":{"rendered":"<p>Introduction: UK risks \u2018lost generation\u2019 without more jobs for young people<\/p>\n<p class=\"dcr-130mj7b\">Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n<p class=\"dcr-130mj7b\">Younger people in the UK are facing a double whammy of economic pain \u2013 with rising numbers no longer in education, employment or training, and an increasingly tough battle to get onto the housing ladder.<\/p>\n<p class=\"dcr-130mj7b\">Alan Milburn, the former health secretary, is publishing an important review into why so many young people in Britain are economically inactive \u2013 it warns that one in six young people (or 1.25 million) could not be in education, employment or training within five years unless \u201curgent\u201d action is taken.<\/p>\n<p class=\"dcr-130mj7b\">Milburn, who has been looking at the problem for months, will pin the blame firmly on the system rather than young people themselves.<\/p>\n<p class=\"dcr-130mj7b\">He\u2019s expected to say:<\/p>\n<p>double quotation mark\u201cThis is not a failure of young people. It is a failure of a system stuck in the past. Whether it is education or health or welfare, that system fails to enable their participation in the labour market.<\/p>\n<p>\u201cInstead, all too often it ends up putting young people on a path to a life not in jobs but on benefits. This should be the priority for the government. It should be the priority for all of us.\u201d<\/p>\n<p class=\"dcr-130mj7b\">To tackle the risk of a \u201clost generation\u201d, Milburn is pushing for employers to be given more incentives to take on young people. That would give them a leg-up into the world of work, dodging the \u201cCatch-22\u201d situation where employers ask for work experience before giving someone a job.<\/p>\n<p class=\"dcr-130mj7b\">The Milburn review will also make the case for reforming health and disability benefits, arguing that the welfare state is \u201cexacerbating inactivity\u201d.<\/p>\n<p class=\"dcr-130mj7b\">Another factor is the decline of the \u201cSaturday job\u201d, following a drop in entry-level jobs and opportunities in hospitality, leisure and retail, and a fall in apprenticeship starts over the last 10 years.<\/p>\n<p class=\"dcr-130mj7b\">New data this morning will show if the Neets crisis is getting worse, as my colleague Richard Partington explains:<\/p>\n<p>double quotation markExperts have warned of a crisis in youth jobs, with official figures due on Thursday expected to show the number of young people not in education, employment or training (Neet) is close to breaking through a million \u2013 the highest level for more than a decade.<\/p>\n<p>Milburn will warn that without urgent action the number could continue rising from one in eight young people who are classified as Neet to one in six within five years \u2013 representing 1.25 million young lives.<\/p>\n<p class=\"dcr-130mj7b\">Young people who manage to overcome the barriers of unemployment still find it very hard to buy a house.<\/p>\n<p class=\"dcr-130mj7b\">David Thomas, the outgoing chief executive of Barratt Redrow, has warned that first-time buyers are facing one of the most difficult times to purchase a home, due to affordability challenges (more on this shortly\u2026.).<\/p>\n<p>The agenda<\/p>\n<p class=\"dcr-130mj7b\">9.30am BST: Latest quarterly estimates for young people (aged 16 to 24 years) who are not in education, employment or training (Neet) in the UK<\/p>\n<p class=\"dcr-130mj7b\">10.30am BST: Former Health Minister Alan Milburn to hold press conference on his review of the Neets crisis<\/p>\n<p class=\"dcr-130mj7b\">1.30pm US PCE inflation report for April<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17d9b18f084f59d184479a#block-6a17d9b18f084f59d184479a\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a><\/p>\n<p>Updated at\u00a002.57 EDT<\/p>\n<p>Key events<\/p>\n<p>Show key events only<\/p>\n<p>Please turn on JavaScript to use this feature<\/p>\n<p>Vape shops but no jobs: one young man\u2019s search for work in Grimsby<\/p>\n<p class=\"dcr-130mj7b\">This video, from my Guardian colleagues, shows how the Neets crisis is playing out in Grimsby, where 19-year old Cohen is desperate to find a permanent job while running a mascot hire company and chasing his dream of becoming a professional wrestler:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"Vape shops but no jobs: one young man\u2019s search for work in Grimsby\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/05\/1779955149_89_1920.jpg\" height=\"259\" width=\"460\" class=\"dcr-1qi2at0\"\/>Vape shops but no jobs: one young man\u2019s search for work in Grimsby<a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17f4f08f084f59d184485e#block-6a17f4f08f084f59d184485e\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a><\/p>\n<p class=\"dcr-130mj7b\">Employers\u2019 biggest complaint about young people is their \u2018work readiness\u2019, Milburn continues, emphasising the importance of work experience.<\/p>\n<p class=\"dcr-130mj7b\">He tells Radio 4:<\/p>\n<p>double quotation markJust a few days ago, we were talking to Marks and Spencers, to John Lewis, to all of these employers. And the biggest complaint that people have is about what work readiness.<\/p>\n<p>They know that the young people have got qualifications. What they worry more about is whether schools have gifted them the attributes that are needed for the workplace. And that is all about communication, collaboration, agility, adaptability, skills.<\/p>\n<p>We do badly internationally when it comes to work experience. We\u2019ve got to change it.<\/p>\n<p class=\"dcr-130mj7b\">Milburn is due to release recommendations to fix the Neets crisis in the autumn. That could potentially include compulsary work experience for young people, as <a href=\"https:\/\/www.msn.com\/en-us\/money\/careers\/work-experience-should-be-compulsory-for-teens-amazon-s-uk-boss-says\/ar-AA23Qy0E?apiversion=v2&amp;domshim=1&amp;noservercache=1&amp;noservertelemetry=1&amp;batchservertelemetry=1&amp;renderwebcomponents=1&amp;wcseo=1\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">the boss of Amazon UK called for this week<\/a>.<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17ef758f084f59d1844834#block-6a17ef758f084f59d1844834\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a>Milburn: UK&#8217;s &#8216;chronic&#8217; Neets problem is worse than other countries<\/p>\n<p class=\"dcr-130mj7b\">Q: Is the Neets problem worse in the UK than in other countries?<\/p>\n<p class=\"dcr-130mj7b\">Yes it is, Alan Milburn replies.<\/p>\n<p class=\"dcr-130mj7b\">The UK\u2019s Neets rate is three times as high as in Holland, and twice as high as Ireland, he says. Britain has moved down the international league table in recent times.<\/p>\n<p class=\"dcr-130mj7b\">He calls it a \u201cchronic problem\u201d that is getting worse not better, with no plan to deal with it.<\/p>\n<p class=\"dcr-130mj7b\">Young people are caught in a \u201cperfect storm\u201d, he continues, where the first rung on the career ladder is further out of reach for them.<\/p>\n<p class=\"dcr-130mj7b\">The number of jobs in low and medium-skilled occupations have declined by over a million over the last 20 years. Apprenticeship starts are down by about a third in the last ten years, and the Saturday job has disappeared, Milburn points out.<\/p>\n<p class=\"dcr-130mj7b\">That\u2019s compounded by a welfare system created to deal with \u201cyesterday\u2019s problem\u201d of cyclical youth unemployment. Today, the challenge is \u201cyouth detachment\u201d, he adds.<\/p>\n<p class=\"dcr-130mj7b\">As Milburn puts it:<\/p>\n<p>double quotation markPeople always talk about welfare and they\u2019re right to do so. But this is a problem in the labour market, in the welfare system, in the school system, in the skills system and in the health system.<\/p>\n<p>It\u2019s not reforms that you need. It\u2019s a radical reset.<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17ecf98f084f59d184481f#block-6a17ecf98f084f59d184481f\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a>Milburn: the silence kills hopes for Neets<\/p>\n<p class=\"dcr-130mj7b\">Alan Milburn is discussing his new report into the Neet crisis now, on Radio 4\u2019s Today Programme.<\/p>\n<p class=\"dcr-130mj7b\">Milburn emphasisis that the UK risks a \u201clost generation\u201d of young people out of work, training or education, with many being rebuffed when they apply for work, or never even hear back.<\/p>\n<p class=\"dcr-130mj7b\">Milburn says:<\/p>\n<p>double quotation markIt\u2019s the silence that kills, it dents confidence. But more importantly, it kills hope.<\/p>\n<p class=\"dcr-130mj7b\">He adds that 84% of the Neets his team surveyed actually want to be in work or training :<\/p>\n<p>double quotation markThere\u2019s no shortage of effort on their part. Now the shortage is of opportunity and of support.<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17eba28f0812dff661d11a#block-6a17eba28f0812dff661d11a\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a><\/p>\n<p>Updated at\u00a003.24 EDT<\/p>\n<p class=\"dcr-130mj7b\">New data from Zoopla this morning highlights the affortability challenges facing first-time buyers, showing:<\/p>\n<p class=\"dcr-130mj7b\">First-time buyers are targeting homes worth \u00a310,000 more than a year ago, with average prices up 4.3% to \u00a3254,750 \u2014 nearly 3x the rate of UK house price growth<\/p>\n<p class=\"dcr-130mj7b\">There are 6% fewer first time buyers in the market than this time last year.<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17e9fc8f085ed9af255152#block-6a17e9fc8f085ed9af255152\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a>Milburn correct to reject  \u201clazy tropes\u201d around youth unemployment<\/p>\n<p class=\"dcr-130mj7b\">Economists have been welcoming Alan Milburn\u2019s report into the UK\u2019s Neets crisis, even before its official launch later today.<\/p>\n<p class=\"dcr-130mj7b\">George Bangham, head of social policy at the New <a href=\"https:\/\/www.theguardian.com\/business\/economics\" data-link-name=\"in body link\" data-component=\"auto-linked-tag\" rel=\"nofollow noopener\" target=\"_blank\">Economics<\/a> Foundation (NEF), has said Milburn is correct to reject the \u201clazy tropes\u201d about this problem somehow being young people\u2019s own responsibility, adding:<\/p>\n<p>double quotation mark\u201cMost young people want to work, but too few jobs are available to them in many local areas, as NEF research has shown. Job vacancies are at their lowest level in 12 years, outside of the pandemic lockdowns \u2013 and young people are struggling more than others to land the few jobs available.<\/p>\n<p class=\"dcr-130mj7b\">The Resolution Foundation thinktank says Milburn is correct to identify \u201crising ill health, limited vocational education, a hands-off benefits system, and a weak labour market\u201d as key drivers of the UK\u2019s NEET rate.<\/p>\n<p class=\"dcr-130mj7b\">Lindsay Judge, research director at the Resolution Foundation said:<\/p>\n<p>double quotation mark\u201cIt is encouraging to see how strongly the Milburn Review\u2019s interim report recognises the gravity of the UK\u2019s Neets crisis. Our ambition should be that the UK becomes one of Europe\u2019s lowest Neet countries rather than one of its highest.<\/p>\n<p>\u201cThe report has grasped the key drivers of the UK\u2019s high Neet rate, and the steps needed to tackle these: more engaged employment support, early intervention on mental health, and a greater focus on further education.<\/p>\n<p>\u201cBut there are real fiscal and structural challenges ahead. There is no single system currently in place to solve this crisis, so the Government will need to develop a new approach that spans government departments as well as regional and local authorities, plus find the funding to truly turn the Neets crisis around.\u201d<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17e8988f0812dff661d103#block-6a17e8988f0812dff661d103\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a>First-time buyers facing toughest challenge since financial crisis<\/p>\n<p class=\"dcr-130mj7b\">UK home ownership is increasingly out of reach for young people, David Thomas, the outgoing chief executive of Barratt Redrow is warning today.<\/p>\n<p class=\"dcr-130mj7b\"><a href=\"https:\/\/www.bbc.co.uk\/sounds\/play\/p0nnk8kn\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">In an interview with the BBC<\/a>, Thomas says that now is one of the most difficult times to get on to the housing ladder, comparable only with the aftermath of the financial crisis in 2008.<\/p>\n<p class=\"dcr-130mj7b\">Thomas blamed rising interest rates, student loan deductions and the squeeze on real wages for making it harder to buy a new home in 2026, saying:<\/p>\n<p>double quotation markCertainly it\u2019s going to be close to where we were [after] the great financial crisis.<\/p>\n<p>That was probably more to do with lending, but I think it\u2019s very, very comparable for first-time buyers. We\u2019re now facing challenges around affordability with no government support scheme in place.<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17e3978f0812dff661d0f0#block-6a17e3978f0812dff661d0f0\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a><\/p>\n<p>Updated at\u00a003.07 EDT<\/p>\n<p>Introduction: UK risks \u2018lost generation\u2019 without more jobs for young people<\/p>\n<p class=\"dcr-130mj7b\">Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n<p class=\"dcr-130mj7b\">Younger people in the UK are facing a double whammy of economic pain \u2013 with rising numbers no longer in education, employment or training, and an increasingly tough battle to get onto the housing ladder.<\/p>\n<p class=\"dcr-130mj7b\">Alan Milburn, the former health secretary, is publishing an important review into why so many young people in Britain are economically inactive \u2013 it warns that one in six young people (or 1.25 million) could not be in education, employment or training within five years unless \u201curgent\u201d action is taken.<\/p>\n<p class=\"dcr-130mj7b\">Milburn, who has been looking at the problem for months, will pin the blame firmly on the system rather than young people themselves.<\/p>\n<p class=\"dcr-130mj7b\">He\u2019s expected to say:<\/p>\n<p>double quotation mark\u201cThis is not a failure of young people. It is a failure of a system stuck in the past. Whether it is education or health or welfare, that system fails to enable their participation in the labour market.<\/p>\n<p>\u201cInstead, all too often it ends up putting young people on a path to a life not in jobs but on benefits. This should be the priority for the government. It should be the priority for all of us.\u201d<\/p>\n<p class=\"dcr-130mj7b\">To tackle the risk of a \u201clost generation\u201d, Milburn is pushing for employers to be given more incentives to take on young people. That would give them a leg-up into the world of work, dodging the \u201cCatch-22\u201d situation where employers ask for work experience before giving someone a job.<\/p>\n<p class=\"dcr-130mj7b\">The Milburn review will also make the case for reforming health and disability benefits, arguing that the welfare state is \u201cexacerbating inactivity\u201d.<\/p>\n<p class=\"dcr-130mj7b\">Another factor is the decline of the \u201cSaturday job\u201d, following a drop in entry-level jobs and opportunities in hospitality, leisure and retail, and a fall in apprenticeship starts over the last 10 years.<\/p>\n<p class=\"dcr-130mj7b\">New data this morning will show if the Neets crisis is getting worse, as my colleague Richard Partington explains:<\/p>\n<p>double quotation markExperts have warned of a crisis in youth jobs, with official figures due on Thursday expected to show the number of young people not in education, employment or training (Neet) is close to breaking through a million \u2013 the highest level for more than a decade.<\/p>\n<p>Milburn will warn that without urgent action the number could continue rising from one in eight young people who are classified as Neet to one in six within five years \u2013 representing 1.25 million young lives.<\/p>\n<p class=\"dcr-130mj7b\">Young people who manage to overcome the barriers of unemployment still find it very hard to buy a house.<\/p>\n<p class=\"dcr-130mj7b\">David Thomas, the outgoing chief executive of Barratt Redrow, has warned that first-time buyers are facing one of the most difficult times to purchase a home, due to affordability challenges (more on this shortly\u2026.).<\/p>\n<p>The agenda<\/p>\n<p class=\"dcr-130mj7b\">9.30am BST: Latest quarterly estimates for young people (aged 16 to 24 years) who are not in education, employment or training (Neet) in the UK<\/p>\n<p class=\"dcr-130mj7b\">10.30am BST: Former Health Minister Alan Milburn to hold press conference on his review of the Neets crisis<\/p>\n<p class=\"dcr-130mj7b\">1.30pm US PCE inflation report for April<\/p>\n<p><a href=\"mailto:?subject=UK risks \u2018lost generation\u2019 of young people out of work; first-time buyers face toughest time since financial crisis \u2013 business live&amp;body=https:\/\/www.theguardian.com\/business\/live\/2026\/may\/28\/uk-young-people-out-of-work-unemployment-first-time-buyers-financial-crisis-inflation-food-prices-business-latest-news-updates?CMP=share_btn_url&amp;page=with%3Ablock-6a17d9b18f084f59d184479a#block-6a17d9b18f084f59d184479a\" type=\"button\" class=\"dcr-1mulgdf\">Share<\/a><\/p>\n<p>Updated at\u00a002.57 EDT<\/p>\n","protected":false},"excerpt":{"rendered":"Introduction: UK risks \u2018lost generation\u2019 without more jobs for young people Good morning, and welcome to our rolling&hellip;\n","protected":false},"author":2,"featured_media":449109,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-449108","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/449108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=449108"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/449108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/449109"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=449108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=449108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=449108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}