Number of young people not in education, employment or training falls

The number of young people not in education, employment or training has fallen 30,000 compared to the first quarter of the year.

Nick Connor, chief executive officer at the Institute of the Motor Industry, believes structural failure is the reason for an estimated 981,000 so-called Neets.

He said: “The transition from education into the workplace is fragmented and poorly supported. Young people are being left to navigate a complex and disconnected jobs and training landscape largely on their own.

“And those who face additional barriers, whether that’s disability, mental health challenges or care experience, are the ones most likely to fall through the gaps. We cannot keep treating this as a failure of individual ambition when the evidence points so clearly to structural failure.

“Automotive has, historically, been one of the strongest sectors for providing that vital transition from education into the workplace with an above average representation of apprenticeships.

“However, whilst it remains a high-volume apprenticeship sector, ranking 11th out of 38 subject areas, our latest data shows that automotive apprenticeship starts are 20-25 per cent below pre-pandemic levels for the new academic year.

“That is not because demand for skilled technicians has dried up – quite the opposite. It is because the system makes it too hard, too costly and too complex for smaller employers to take on young people.

“SMEs make up over 95 per cent of our sector. And they are the businesses most willing to offer young people a first step into skilled work. But these organisations have been given too many hurdles to overcome.

“In the first quarter of the 2025/26 academic year, only 45 per cent of automotive apprenticeship starts were levy funded. This was seven per cent lower than in both 2024/25 and 2023/24, and 18 per cent below the all-sector average of 63%.

“The IMI is calling for front-loaded financial support for SMEs, a simplified apprenticeship system, better and earlier careers guidance, and joined-up transitions from education into work.

“We don’t believe they are radical requests – it is simply a question of making it easier for employers to appeal to and engage with young people as they leave education.”