Young People are Ready to Work, but Britain’s Job System is Shutting Them Out

YMCA warns Milburn Review must tackle barriers faced by young people trying to access meaningful work, as new research finds most young people in supported housing want a job, but are held back by lack of opportunities, discriminating benefits rules and poor support systems.

Speaking to an often-unheard group within supported accommodation, new research from YMCA England & Wales found that 73% of young people who were not in education, employment or training had worked before. Of those surveyed, more than half (54%) were actively looking for work, while 61% said they wanted a job, challenging the idea that youth unemployment is driven by a lack of experience or ambition.

Despite this, many young people are being shut out by a shortage of suitable opportunities, poor support systems, missing qualifications and health challenges. Three-quarters of those reporting physical or mental health conditions or neurodivergences are NEET, while the biggest barrier cited by young people in getting the qualifications needed for work is their mental health.

YMCA’s findings come as the UK confronts persistently high levels of youth unemployment and economic inactivity. The latest Office for National Statistics estimate shows that 981,000 young people aged 16–24 across the UK were not in education, employment or training between April and June 2026 – 30,000 more than one year earlier.

The leading youth charity publishes its Working On it report ahead of the final recommendations from Alan Milburn’s independent review into young people and work, due to be released later this month. YMCA, which fed into the Milburn research, is urging the Review to recognise that many young people in supported housing are not disengaged from employment: they are actively seeking a route into a labour market that is increasingly difficult for them to enter.

Working On It draws on responses from 272 young people aged 16–24 living in supported housing at 23 local YMCAs across England and Wales, as well as focus groups with 31 YMCA housing and employment managers and key workers. Young people in supported housing are often from disadvantaged backgrounds, may be furthest from work and face additional systemic barriers that many others identified as NEET do not. As one of the most underrepresented youth groups, whose voices were not captured in the Milburn Review, their experiences provide unique insight into the challenges holding young people back.

Six in ten respondents were not in education, employment or training. Among this group:

• 73% had previously been employed;
• 54% were actively looking for work;
• 49% reported at least one labour-market barrier (i.e. no jobs locally, applying for jobs with no success);
• 46% said workplace adjustments could help them enter employment; and
• only 24% felt hopeful about their employment prospects.

Previous employment was also highlighted as often insecure. Among respondents who had worked before, 63% said their last job had lasted no longer than a year, while one-third cited their mental health as a reason for leaving.

Denise Hatton, Chief Executive of YMCA England & Wales, said:

“Young people are being told to climb the career ladder, but for too many the first rung has been taken away.

“Our research shows that many young people living in supported housing have worked before, want to work and are actively trying to find a job. What stands between them and employment is not a lack of ambition, but a system of disappearing entry-level opportunities, impersonal recruitment, inaccessible qualifications and support that too often fails to reflect their lives.

“While the interim Milburn Review marked a shift away from blaming young people and towards fixing the barriers around them, clear recommendations must follow to ensure this embeds. Britain cannot afford to waste another generation’s potential. Every young person deserves a genuine route into work, not simply another instruction to ‘keep applying’.”

YMCA is calling for a bank of genuinely entry-level jobs without unnecessary experience or qualification requirements. Eligible young people should be offered a direct referral, a guaranteed interview or work trial, thereby reducing reliance on repeated online applications.

The report also recommends that Jobcentres become employment brokers, connecting young people directly with suitable employers; essential qualifications should be accessible without prohibitive costs; and support should continue after someone enters work to help them sustain and progress in employment.

YMCA says employment policy must also recognise the relationship between work, health, housing and transport.

Denise Hatton added:

“Success should not be measured by how many applications a young person submits. It should be measured by whether the right young person reaches the right opportunity and receives the support needed to succeed.”