Young Brits Face 'Soul-Crushing' Job Hunt as Youth Unemployment Hits 11-Year High
Young people in the UK are battling a bleak jobs market, with youth unemployment rising to a five-year high in late 2025, excluding the Covid-19 spike. Official figures reveal that for 18 to 24-year-olds, this marks an 11-year peak, while the broader 16 to 24 age group now faces a rate of 16.1%, surpassing the EU average of 14.9% for the first time. This compares starkly with the overall UK unemployment level of 5.2%, highlighting a deepening crisis for the younger generation.
'It's Soul-Crushing': Personal Stories of Struggle
Poppy Blackman, a 22-year-old from London, epitomises the struggle. Unemployed since January 2025, she applies to around 50 roles monthly, using multiple CVs tailored to different sectors. "Not a day goes by when I don't apply for at least a few jobs," she says. "It does get a little bit soul-crushing." Her experience is increasingly common, as businesses freeze recruitment in a sluggish economy, hitting entry-level roles hardest.
Jack, a 21-year-old Oxford graduate with a first in history, has applied for over 100 positions since last summer. He describes a gruelling process dominated by automated responses and chatbot interviews. "Entry-level roles want you to already have a foot in the door," he explains, feeling trapped in a catch-22 situation. "I feel pretty drained and fed up."
Expert Warnings of a 'Generation on the Scrap Heap'
Alan Milburn, chair of the government's Young People and Work review, warns that the rise in youth unemployment poses an "existential" risk for the UK. "We're seeing something dramatic changing in the labour markets," he told the BBC. "Forty-five per cent of 24-year-olds who are not in education, employment or training have never had a job. If you haven't had a job by 24, that entails a long-term scarring effect."
Ashwin Prasad of Tesco's UK arm cautions that the nation is "sleepwalking into a quiet epidemic" of joblessness, with millions relying on benefits. Economists point to multiple factors driving this trend, including rising employer costs and economic sluggishness.
Economic Factors and Policy Impacts
Since Labour's return to power in 2024, Chancellor Rachel Reeves' budget measures have increased costs for employers. Key changes include:
- Raising employers' national insurance contributions from 13.8% to 15%.
- Cutting the NICs threshold from £9,100 to £5,000 annually.
- Annual increases in the national minimum wage, with a 6.7% rise in 2025.
According to the Centre for Policy Studies, the combined cost of employing someone aged 21 and over has risen by 15% since 2024, adding £3,414 per employee. For 18 to 20-year-olds, the increase is 26%, or £4,095. Simon French, chief economist at Panmure Liberum, notes that these incremental burdens, coupled with the Employment Rights Act, are not a "free lunch" for businesses.
AI and Sector-Specific Challenges
While many graduates fear AI replacing jobs, PwC's youth employment index for 2025 found minimal economy-wide impact. However, in the IT sector, youth employment has dropped by around a fifth due to automation, even as adult employment remains stable. Jake Finney of PwC explains that young people are concentrated in retail and hospitality, sectors less affected by AI so far.
Broader Implications and Personal Adaptations
Jonathan Townsend of The King's Trust highlights that this generation faces a uniquely difficult start to working life, with pandemic disruptions leaving gaps in skills and confidence. Saalim Elhaj, 23, graduated with an architecture degree but has turned to learning timber framing through apprenticeships and volunteering. "Everything is very uncertain, and I really want to learn a skill," he says, reflecting a shift away from traditional career paths.
Julie Leonard of the Shaw Trust adds that young people have had a "raw deal," navigating unprecedented social and technological changes. As youth unemployment continues to climb, the call for targeted interventions grows louder to prevent long-term economic and social scarring.
