Youth Unemployment: Why are young people finding it so hard to get into work?

The youth unemployment rate reached 16% at the end of 2025, its highest rate for a decade, new figures from the Office of National Statistics (ONS) show.

The rate among 16-24 year olds is significantly higher than the 5.2% national average, although even that is at its highest rate for five years.

Almost 100,000 more 16-24 year olds in the UK were unemployed between November 2025 and January 2026, pushing the total to 732,000, the figures show.

The effects of these figures are being felt locally too, South Yorkshire was 13th in the country for youth unemployment rates between 2014 and 2024, with an average rate of 14.2%, according to ONS data .

The chart on the right indicates the differences between Youth unemployment (light blue) and general unemployment (dark blue).

In Sheffield, 20-year-old Josh Rushworth says he has applied to over 100 jobs since September when he moved back from Canada, and has not been offered any interviews.

Josh was born in Sheffield but his family moved out to Canada when he was 8, he now speaks with somewhat of a Canadian accent.

He said: "The main struggle is I don't have any qualifications or enough experience (for the jobs), if I want to work in a cafe I need a health and safety qualification which the job centre and universal credit don't offer.

"It's kind of a loop because I need a job to get the money to study that programme but I can't get that job."

He keeps himself occupied by playing video games, making music, boxing and going to the pub with his friends. In the long term he is keen to get into music production.

Josh said: "I'm motivated to find work because I need money for rent, I live with my mum who is not in the best financial situation."

Josh works closely with Ascend, an unemployment charity in Sheffield, they have provided him with some voluntary work in a community foundation.

He says it has helped him with his confidence and makes him realise he has more useful skills than he thought.

Steve McIntosh, Professor of Economics at the University of Sheffield, traces the current situation back to low growth and productivity levels that date back to the financial crash of 2008/09.

When asked about youth unemployment specifically, Mcintosh explains how the factors driving general unemployment hit youngest people hardest.

He said: "The rising costs of employing people and the sluggish performance of the economy are causing businesses to sit tight and avoid rash decisions rather than take on new employees.

“Existing workers once they are in work are mostly keeping their jobs but the lack of business confidence means new positions aren’t hiring which affects people coming into the labour market looking for that first job in particular.”

Prof Mcintosh highlights the rise in employer National Insurance contributions, and the minimum wage, as well the impact of Artificial Intelligence (AI).

The government has plans to remove the discriminatory age bands on minimum wage, which would further push up the cost of employing young people.

He said: “AI is hitting entry level jobs such as admin assistants and data entry which are taken more by young people.”

In Sheffield, “the jobs which are available are advanced manufacturing, they are high skilled - degree level or at least advanced apprenticeships.” Mr Mcintosh said.

The Head of Ascend, Chris Watson, said: “We have seen an increase in numbers, we have got people who have got higher qualifications as well as those who have left school earlier.”

As more highly-qualified people are competing for lower-skilled jobs, there is a knock-on effect for people without formal qualifications, who in turn find it harder to get work.

Mr Watson said: “Lack of experience is definitely a massive barrier because there is high unemployment generally.

"GCSE Maths and English is always a barrier, why does everyone need to have that if they've got a real passion for something specific.

“If there is an opportunity to do a sandwich course or to do something where you get work experience, that is really positive.

Despite this, Mr Watson is keen to demonstrate that there are young people willing to work, and trying hard to find jobs.

He said: “I am amazed all the time by how resilient people are who are going through this. If you apply for 100 jobs and you are still going I think that shows real strength.

“People are saying ‘the younger generation are not wanting to work’, that is definitively not the case, they are resilient and I am always amazed by the people I work with.”

Looking forward, Professor Mcintosh says current trends are set for the foreseeable future and that there is little to suggest any of the factors mentioned are likely to reverse any time soon.