The UK is facing a sharp and unsettling challenge: too many young people are struggling to find their way into the world of work. With nearly one million individuals aged 16–24 not currently in education, employment, or training, something has to change. Recently, the government launched a bold effort aimed straight at this problem. The new £1 billion youth employment drive promises 200,000 new jobs and apprenticeships, creating real chances for the next generation.
At EWS Limited, we have seen the growing anxiety among young people and employers alike. Our work in global workforce solutions and consultancy regularly brings us face-to-face with these barriers to entry, especially for entry-level talent. We believe this initiative marks an overdue and significant step, but it is only by combining reforms, employer engagement, and real partnerships across education and business that we unlock genuine progress.
A country’s future depends on the strength, skills, and confidence of its young people.
UK unemployment numbers have changed dramatically over the last decade. According to The Guardian reporting on official forecasts, youth unemployment is now hitting the highest rate since the COVID pandemic: 16.1% of those aged 16–24 were out of work in late 2025. The Office for Budget Responsibility predicts the general unemployment rate will keep climbing, peaking at 5.3% by 2026.
But numbers barely tell the full story. There is a mounting sense of frustration among young people—many feel locked out of opportunities, unsure where to turn, and anxious about their futures. It is not just the job seekers who are concerned. Employers in IT, hospitality, retail, and many more industries report ongoing skills shortages. They need talent; young people need work. Yet the bridge between them often seems weak or incomplete.
Current data shows:
We have witnessed, through our client partnerships at EWS Limited, how uncertainty about employment rules and processes can discourage even the most motivated candidates and companies.
The newly launched youth employment initiative represents a significant investment of public funds: £1 billion dedicated to creating real-world, paid opportunities for 16 to 24-year-olds.The drive has three pillars:
The plan aims to deliver:
This move builds on earlier efforts, including a recently announced £820 million funding package to create 350,000 new training or placement opportunities in construction, health, and other essential sectors.
Young people need more than advice—they need clear, practical chances to build skills, earn, and gain confidence.
Change is coming in several forms—not just more roles, but structural reforms that shape the way jobs and skills are developed for young people. Here are the main features:
Under the new drive, employers who grow their teams with staff aged 16–24 will receive new per-hire grants. These financial incentives absorb some of the early costs and make it more attractive for companies, from Series B and C start-ups to established IT firms, to take a chance on talent at the entry level.
The goal is simple: remove as many financial barriers as possible so businesses see opportunity—not risk—in hiring youth.
The expanded job guarantee scheme means more young applicants will gain a first job that is not just temporary, but comes with guaranteed minimum hours, wage support, and employer mentoring. This brings welcomed stability and makes it simpler to plan, budget, and grow long-term.
A major reform announced as part of this initiative is the roll-out of new foundation apprenticeships. These courses will be available in sectors seen as both accessible and high-demand for youth: hospitality, retail, and areas like digital marketing or customer service.
Research indicates that early exposure to work experience or structured apprenticeships has a lasting impact on career confidence and long-term employability. The government’s plan includes investments to:
The £725 million investment to deliver 50,000 more apprenticeships reflects this new focus, covering the full cost of many apprentices under 25 and promoting new foundation-level roles.
The government is reshaping the Growth and Skills Levy to ensure employers and training providers put more focus on learners under 25. This will mean more funding, priority access to training, and a renewed urgency to prepare youth—rather than simply upskilling older workers.
This aligns with our own approach at EWS Limited, where we often advise companies to embrace skill-based hiring methods and adjust their talent planning for younger, diverse applicants.
A key strand of the drive is making sure that every young person, especially those classified as NEET, has access to careers advice, digital CV building, mock interviews, and employer-led coaching. This is important for matching untapped talent with the jobs being created, especially in regions hit hardest by unemployment.
More support, better guidance, and one-to-one mentorship can create progress where job postings alone cannot.
Demand for quick, large-scale action has been building. In recent months, the Chartered Institute of Personnel and Development called for government-led support for young job seekers, after seeing a worrying slide in apprenticeship uptake and employer-led schemes.
Without intervention, the danger is a “lost generation” of young adults lacking the right skills, ambition, or belief to restart their careers, especially after pandemic disruptions.
We agree with Dr Joe Marshall, who commented that these government actions signal a long-awaited recognition: right now, young people face real hurdles as they try to enter the labor market. The pandemic knocked out many work placements and on-the-job training schemes. Automation and digitalization continue to reshape industries quickly. Hybrid work has altered entry roles. For many, the traditional routes are blocked or unclear.
As a company specializing in supporting workforce transitions and helping organizations manage risk, we have seen first-hand the anxiety and hesitation among both young people and hiring managers. Practical steps—like this job creation drive—help restore confidence and rebuild links between talent and opportunity.
We have long supported both sides of the employment equation: companies hungry for new skills, and young people needing first chances. Through our candidate placement solutions, tailored onboarding, and global workforce management tools, we appreciate just how valuable a well-structured entry path and positive employer experience can be.
Here are some lessons we have learned and principles we believe are central to making this drive a lasting success:
Entry-level jobs must be more than temporary fixes. Young recruits need real roles with training, progression, and support that helps them set out a career for the long term.
Employers benefit by growing with new talent. Businesses that welcome apprentices, junior staff, and school-leavers invest in their own growth, learning agility, and culture.
Skill needs are changing rapidly. Digital, communication, and problem-solving skills are in greatest demand. Programs must keep pace with these shifts.
Practical workplace support matters. Initiatives that pair financial incentives with mentoring, buddy schemes, and hands-on coaching outperform those focused solely on numbers.
We have seen, especially in IT and global mobility spaces, just how quickly candidates can adapt if given targeted training and support—not just jobs offered and then left to sink or swim.
Apprenticeships sit at the core of the government’s youth employment strategy. As we see at EWS Limited, well-designed apprenticeship schemes are powerful tools, not only for plugging skills gaps but for giving young people confidence, structure, and purpose in their career journey.
Foundation apprenticeships, specifically created for entry-level candidates, will offer high-quality, paid experience in customer-facing, technical, and creative roles.
For many, these are the first steps that make later, higher-level apprenticeships or degree study a reality. We believe apprenticeships, when paired with real mentoring and supportive managers, are transformative—not only do they teach work skills, but they also provide a sense of belonging and progress.
A constant challenge in youth employment is the disconnect between schools, colleges, and the workplace. Too often, candidates are left to figure out the link between a qualification and a career on their own. As Dr Joe Marshall has stated, real change will need closer cooperation between universities, colleges, and employers.
We agree. For this initiative to succeed, all parties must play a part:
Initiatives such as inclusive recruitment and transparent skills assessments support these aims, showing both learners and businesses what the next step looks like.
Strong partnerships between education and business build clear, confident routes from classroom to career.
The job creation drive is a significant milestone, but we know that progress will be measured not just in numbers but in stories: how many young people feel welcome and valued in the workplace, how many build skills they use for life, how many set off on paths full of possibility.
Priorities for the coming year should include:
If we succeed, the benefits will last for decades—employers will find the talent they need, young people will face less uncertainty, and communities everywhere will be stronger and more resilient.
At EWS Limited, we see ourselves as connectors in this challenge. We partner with businesses to build clear, practical pathways from passion to profession, especially for first-time hires and global talent. Our experience with Employer of Record, Payroll Outsourcing, and Global Mobility solutions gives us unique insight into what both candidates and companies need to thrive.
We stand ready to help organizations looking to welcome young talent, manage new compliance obligations, and create inclusive, engaged teams. Whether guiding HR leaders through changing regulation or helping candidates access the right skills training, our mission is the same: Connect the dots, create growth, and help the next generation step forward with confidence.
There are few policy initiatives as meaningful as those that place new jobs, skills, and hope directly in the hands of young people. This £1 billion youth employment drive is a timely commitment to turning the tide on unemployment, supporting business recovery, and filling persistent skill gaps. Yet, as we know from experience, real change takes everyone: government, education, employers, and youth themselves.
By building open, practical partnerships between the classroom and the workplace, we set the stage for lasting opportunity and growth.
If your business is ready to take part in this renewal, or you are a young jobseeker searching for guidance, we are here to help. Discover more about our tailored solutions at EWS Limited—and together, let us unlock the next generation’s future.
The Youth Employment Drive is a new government initiative investing £1 billion to create 200,000 new jobs and apprenticeships for people aged 16–24. The program includes grants for employers who hire young people, expanded job guarantees for entry-level work, and more incentives for apprenticeships. These efforts are designed to address rising youth unemployment and give young people clear pathways into the workforce.
Young people interested in these roles can apply through a variety of channels. Many positions will be advertised on job search platforms, via apprenticeship and skills providers, through local career services, and directly by participating employers. In some cases, support will be available for building CVs, practicing interviews, and finding a match that fits your strengths and interests.
The main focus is on individuals aged 16 to 24 living in the UK who are currently not in education, employment, or training (NEET), as well as young jobseekers looking for first jobs or apprenticeships. Some parts of the program, such as foundation apprenticeships and wage-supported jobs, have specific requirements set by employers or funding guidelines, but most young people in this age bracket are encouraged to apply.
Jobs and apprenticeships funded through the Youth Employment Drive will start launching throughout the current year, continuing as the initiative unfolds. Employers and training partners are being actively recruited and prepared to offer roles as soon as possible, with funding packages already deployed and new opportunities coming online over the coming months.
Yes, apprenticeships offered through this initiative are paid positions. Young people will earn wages while learning on the job, gaining valuable experience, training, and professional skills. In addition, many costs associated with training and onboarding are covered for both apprentices and the businesses that hire them, making these roles more accessible than ever before.
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