Lost in transition: An examination of why the UK NEET rate is high and rising

This report investigates why the UK’s NEET rate has been rising since 2019, and why it has long been higher than in many other countries. Just over half of the post-2019 rise in NEETs can be explained by a weaker labour market. The rest reflects not worse unemployment than economic conditions would predict, but higher economic inactivity that has been rising alongside worsening health and increasing incapacity benefit claims. Looking abroad however, ill health need not translate into poor participation outcomes. Rather, countries with the lowest NEET rates do so by having more people in education (or combining education and work), alongside benefits systems that have more extensive requirements, but offer more generous support than in the UK.