Why Young People Are Locked Out of Work in the UK | MyPocketSkill

Author: Matthew Harker - Co Founder and Co- CEO of MyPocketSkill

In November 2025, the Milburn Review:  Young People and Work was commissioned by the UK government to investigate why rising numbers of young people ( 1m at the last count!)  are not in education, employment or training (NEET).

Every day at MyPocketSkill, we speak to young people across the UK who want to work, earn money and build their independence. So the question is: why are so many still locked out of work?

From our experience supporting over 250,000 young people, the issue is not motivation.

It is access to opportunity.

When young people are given the chance to earn, even in small, flexible ways, their confidence grows, motivation increases, and their future feels possible.

But right now, too many never get that first chance.

1. The Missing First Step

One of the biggest barriers is getting onto the first rung of the career ladder.

Entry-level jobs are harder to find, and many employers still ask for experience even in junior roles. Informal pathways, such as family or personal networks, are also becoming less common.

In sectors like software and IT, more than 60% of entry-level roles now require 3+ years of experience.

As one young person, Emanuel (19), told us:

“I’m competing for entry roles against adults with plenty of experience.”

At the same time, AI is changing the job market. Many early-career roles are most at risk of automation, making it even harder for young people to get started.

This creates a “missing first step” into work.

At the same time, parents and young people are increasingly cautious about online opportunities. Concerns around scams, safety, and exploitation make it harder to trust new ways of working - even when legitimate opportunities like MyPocketSkill exist.

2. It Costs Money to Start Working

Starting work isn’t free.

Transport, clothing, equipment, phone credit and food all add up. For young people without financial support, these costs all add up - making “free training” or even interviews feel out of reach.

Research from The Prince's Trust Natwest Youth Index 2024 shows that 5% of young people have turned down a job because they could not afford the upfront costs, rising to 10% for those who are NEET.

Unpaid work experience makes this even harder. While intended to help young people gain experience, potentially useful but unpaid placements like the new T Level qualification often exclude those who can’t afford to work for free.  We’ve seen examples of young people having to take out part-time jobs in addition to working for an employer for free.

In practice, this means opportunity becomes unequal, available only to those who can afford it.

3. Confidence Has Taken a Hit

The impact of COVID is still being felt. Our work commonly highlights that many young people struggle with confidence, communication and navigating unfamiliar environments.

Lucian, a 19 year old songwriting student in Sussex told us: ”Usually we'd have had work experience but at the time we were due to do it there was COVID and Lockdown etc. There need to be more ways to gain experience.”

And with the current mental health crisis and neurodevelopmental trends, for some, the workplace feels overwhelming. For others, it simply feels like work “ isn’t for people like me”, especially where local labour markets are weak ( place - based effects).

Without gradual, supportive entry points into work, this lack of confidence can quickly turn into long-term disengagement.

4. Employers Face Barriers Too

Employers also face challenges. Hiring young people can feel risky. There are concerns about supervision, safeguarding, and additional support needs. Research shows that young people can be misguidedly typecast as burdensome and expensive:-

• 34% of employers feel young people are overly sensitive
• 27% feel they are entitled
• 23% feel they are lazy
• 9% have rejected a young person due to age

On top of this, there’s no simple way for employers to offer short, flexible opportunities that help young people get started.

This creates friction on both sides and fewer opportunities overall.

So What Would Make the Biggest Difference?

1. Make “paid first chances” the norm - not the exception

From our perspective, the answer is clear: we need more paid first chances.

Short, structured, paid opportunities such as micro-internships, paid work tasters, and paid community projects can make a huge difference. They are low-risk for employers and powerful for young people - providing quick evidence of reliability and skills

When young people earn, even small amounts, everything changes. They can afford transport. They gain independence. They build confidence. And most importantly, they start to believe in their future.

2. Don’t Rely on Apprenticeships Alone

Apprenticeships are valuable, but they aren’t a quick solution. They require long-term commitment and can be difficult for both employers and young people to access which may be the reason behind a 32% drop in apprenticeship starts from its peak in 2011/12.

Instead, we should look at the successes of more flexible models that have already worked such as the post-COVID Kickstart Scheme which saw 94% of young people accessing genuinely useful training opportunities, and strong satisfaction measures. The new £3,000 youth jobs grant is exactly the type of programme that can create momentum by helping young people move forward, step by step.

3. Make It Easier for Employers

With the right support, more employers, especially small businesses, would be willing to offer first-chance opportunities.

Simple solutions that would make it easier for SMEs to participate at scale include:

• Templated role designs
• Easy onboarding
• Funding support
• Payment rails
• Basic compliance/insurance guidance.

4. Earn and Learn Should Go Hand-in-Hand

Work experience should also build skills. Paid opportunities can be combined with:

• Bite-sized training
• Micro-credentials in the form of soft skills, digital skills and sector tasters
• Skills portfolios that evidence what the young person did, learned and can now do (take a look at our personal Achievement Centre for starters)
• Clear next steps and signposting to relevent employers

When experience becomes learning, and learning becomes employability, young people move forward faster.

5. Targeted support to unlock participation. 

By providing low-bureaucracy “participation funding” for limited duration, the “ I can’t afford to start” barrier is removed and this could be a really high-return intervention.

• Faster roll-out of the Jobs Grant for young people
• Application of funding to micro-internships across multiple employers
• More focus on the areas where young people can transform businesses (AI, digital)

This could increase youth participation by around 11%, and may become cost-neutral over 3–5 years through tax returns and reduced benefit dependency.

6. Designing for Everyone

We also need to recognise that many young people face additional challenges, including mental health needs and disabilities.

Opportunities should be designed with flexibility from the start:

• Predictable hours
• Remote or hybrid options
• Task-based roles
• Support and coaching

These small adjustments can open doors for thousands of young people.

Conclusion: A Simple Fix With Big Impact

Young people don’t need complicated solutions. They need opportunity.

At MyPocketSkill, we see every day how powerful that first step can be.

If we want to support more young people into employment, education, and training, we must rebuild the pathway into work - starting with paid first chances and putting Gen Z first.

Because when young people earn, they don’t just make money.

They build confidence.
They build skills.
They build their future.

Matthew Harker
Co-Founder, MyPocketSkill

For more info about our work on upskilling and financial education contact PR@mypocketskill.com