A new interim report published this week found that the number of young people not in education, employment or training (NEET) could rocket in coming years.
The report: Young People and Work was carried out by Alan Milburn. It revealed that apprenticeship starts for young people have declined by over 40%. In other words, the first rungs on the old career ladder have weakened.
Overall, by age 18, a lower proportion of young people were in education or apprenticeships in 2024 than 10 years earlier.
“Forecasting conducted for this Report suggests that the NEET rate could increase to over 16%, or more than 1.25 million young people not fully able to participate in society, within five years. That is not a price we can ask those young people to pay,” it said.
The IMI responded to the report saying historically automotive had been one of the strongest sectors for providing the “vital transition” from education into the workplace with an above average representation of apprenticeships.
IMI CEO Nick Connor said: “Whilst it remains a high-volume apprenticeship sector, ranking 11th out of 38 subject areas, our latest data shows that automotive apprenticeship starts are 20-25% below pre-pandemic levels for the new academic year.
“That is not because demand for skilled technicians has dried up – quite the opposite. It is because the system makes it too hard, too costly and too complex for smaller employers to take on young people.
“SMEs make up over 95% of our sector. And they are the businesses most willing to offer young people a first step into skilled work. But these organisations have been given too many hurdles to overcome.
“In the first quarter of the 2025/26 academic year, only 45% of automotive apprenticeship starts were levy funded. This was 7% lower than in both 2024/25 and 2023/24, and 18% below the all-sector average of 63%.
“The IMI is calling for front-loaded financial support for SMEs, a simplified apprenticeship system, better and earlier careers guidance, and joined-up transitions from education into work. We don’t believe they are radical requests – it is simply a question of making it easier for employers to appeal to and engage with young people as they leave education.
“We know that when the conditions are right, things do change. We’ve seen it with HGV apprenticeships, where targeted support, clear career pathways and genuine employer engagement have made a real difference.
“We hope that the interim report from the Milburn Review will provide some clear indication that change will be made to achieve the difference that is needed at scale.”
