Almost one million young people in the UK are not in education, employment, or training (NEET). That's roughly one in every eight 16 to 24 year olds. Without action, it’s estimated that this figure could reach 1.25 million by the early 2030s.
Those numbers sit at the heart of Alan Milburn's interim report, 'Young people and work', and they deserve the attention of every HR and talent leader in the country. Milburn doesn't soften his message:
At the very point when they should be starting adult life, gaining confidence, building skills, learning the habits of work and taking their first steps towards independence, too many are becoming detached from education and employment altogether. We are at risk of a lost generation. That is a moral crisis. It has economic consequences.
It was announced earlier this week that ministers are expected to make a major policy announcement in November, signalling a significant shift in how the government supports young people. Alongside this, we are awaiting the publication of Alan Milburn’s final review, expected after next week’s first Budget from Chancellor John Healey.
Media reports suggest that, currently, for every one pound the Department for Work and Pensions spends on employment support for young people, it spends £25 on benefits. Therefore, the direction of travel for the Burnham government is clear: more focus on getting young people into work.
Policy can open doors, but it can't create jobs on its own. That part falls to employers. The real question for heads of talent acquisition, recruitment, and HR is simple: what role will your organisation play?
The missing generation: why it matters to your business
Reed’s latest research report, ‘The missing generation 2026: What happens when nobody starts at the bottom?’, underlines why business leaders must be proactive in helping to address this issue. Drawing on surveys of 2,000 UK employers and 2,000 young people aged 16 to 24, alongside insights from organisations including BAE Systems, Evri, BT Group and the Chartered Management Institute, the report shows just how quickly the route into work is narrowing - and why that is not only a social issue, but a growing commercial risk.
Fewer first steps into work
The report highlights a labour market that is becoming harder for young people to enter. Over a four-year period, graduate jobs advertised on Reed.co.uk fell from 180,000 to 50,000. At the same time, 28% of young people told us there are not enough suitable entry-level roles available to them. For many, the traditional first rung on the career ladder is no longer there.
The experience paradox
One of the clearest themes in ‘The missing generation 2026’ is the circular challenge facing young people trying to get started. Nearly three in ten (29%) say a lack of work experience is holding them back, while 24% report that entry-level roles already require previous experience. It is a paradox that leaves many young people locked out before they have the opportunity to begin.
Rising costs, changing roles, shrinking opportunity
The report also makes clear that employers are operating under real pressure. The cost of hiring a 21 year old working a 40-hour week has risen to at least £29,654 - an increase of more than 70% in five years. At the same time, 19% of employers say AI and automation are reducing opportunities for young people. In tech businesses, that rises to 26%, as foundational roles in areas such as IT support, data and software testing continue to evolve.
Taken together, these findings help explain why some organisations are stepping back from early-careers hiring. But, ‘The missing generation 2026’ also points to a more uncomfortable truth - the cost of delaying action today is likely to be far greater tomorrow.
A future leadership problem in the making
This is not simply about entry-level recruitment. It is about the long-term resilience of your workforce. Reed’s report found that 74% of employers believe shortages in early-career talent today will contribute to leadership shortages in the future. If fewer people enter the workforce now, fewer will be ready to step into critical mid-level and senior roles later.
That is why this issue should matter to every business leader. When nobody starts at the bottom, talent pipelines weaken, succession planning becomes harder, and there are fewer opportunities to pass on institutional knowledge.
The opportunity for employers
There is, however, a reason for optimism. The report shows that employers understand what is at stake: 73% say bringing early-career talent into their organisation is a high priority, while half identify fresh perspectives as one of the biggest benefits of hiring young people.
The challenge, then, is not awareness: it is action. What employers increasingly need is a practical, lower-risk way to invest in early-career talent and rebuild their pipeline for the future.
A solution: Flexi-job apprenticeships
Apprenticeships remain one of the most effective ways to bring young people into work while building the skills your business needs. Yet, I speak to HR leaders every week who want to offer them but hit the same obstacles: headcount limits, training costs, admin, and compliance complexity.
Flexi-job apprenticeships remove those obstacles.
How it works
Reed is a Department for Education-approved Flexi-Job Apprenticeship Agency (FJAA) for technology, digital, data and AI apprentices, in England. We employ the apprentice and place them with your organisation as the host. You provide the day-to-day work, direction, and learning environment. We take care of everything else.
That means:
Reed is the legal employer. The apprentice sits on our books, so your team gains capability without adding to your official headcount.
No training costs for you. We fund the apprenticeship training through our own apprenticeship levy.
No admin burden. We handle recruitment, payroll, HR, compliance, wellbeing support, and progress tracking.
Reduced risk. If your priorities shift, we find the apprentice a new placement so they can complete their programme.
Flexible start dates. Placements can begin at any time, without waiting for academic term dates.
Built for organisations of every shape
This model separates hosting from employment liability. That makes it especially useful for smaller firms or business units within larger enterprises that don't have dedicated early-careers teams or infrastructure. A department can bring in an apprentice without building a programme from scratch.
Through our tech and digital academy, we focus on the tech and digital skills businesses need most, helping you build in-house capability through structured learning and professional qualifications. For the young person, it's a real job, a recognised qualification, and a first step into a career. For you, it's a talent pipeline shaped around your future needs.
Questions worth asking now
Before the government sets out its plans, take a moment to look at your own workforce strategy:
Which roles do you consistently fill with expensive contractors that an apprentice could grow into?
Where will mid-level and leadership gaps appear in the next three to five years?
What's stopping you from offering apprenticeships today: cost, headcount, or admin?
Do your managers have the time and appetite to coach early-career talent?
If your challenges point to increasing labour costs, headcount or admin burden, a flexi-job apprenticeship could be the most direct route forward.
What can your organisation do?
Alan Milburn calls this a moral crisis with economic consequences, and he's right. But I also see an opportunity.
Every young person who starts their first job today is a potential team leader, specialist, or director tomorrow. The businesses that invest in that pipeline now are the ones with the skills, diversity, and leadership strength to thrive in the years ahead.
Speak to our future skills team today to find out how flexi-job apprenticeships can help you build your next generation of talent, and give a young person their first step into work.
