Overview
- OECD data show unemployment among 16–24 year olds at 15.3% in the three months to September, edging above the EU average of 15% for the first time on record since 2000.
- Bank of England rate‑setter Catherine Mann said cumulative increases in the minimum wage have “manifested in unemployment” for younger workers, arguing the trend is not simply a signal of a broader labour‑market slump.
- Policy changes reduced youth pay differentials, including the removal of the 21–22 lower rate in April 2024 and a 16.3% rise for 18–20 year olds in April 2025 to £10, with a further lift due in April 2026 to £10.85 for youths and £12.71 for over‑21s.
- OECD figures indicate roughly 150,000 more young people are unemployed since Labour took office, taking the total number of jobless 16–24s to about 729,000.
- ONS payroll data show employee numbers fell by 3,000 in December and are 184,000 lower than a year earlier, with declines concentrated in retail and hospitality and hiring remaining weak.