NEET: Young People Not In Education, Employment Or Training

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BRIEFING PAPERNumber SN 06705, 24 August 2018NEET: Young People Notin Education,Employment or TrainingBy Andrew PowellContents:1. UK NEET Statistics2. International NEET Statistics3. Characteristics of people whoare NEET4. Policies to reduce the numberof people who are NEETwww.parliament.uk/commons-library intranet.parliament.uk/commons-library papers@parliament.uk @commonslibrary

2NEET: Young People Not in Education, Employment or TrainingContentsSummary31.1.11.21.31.41.5UK NEET StatisticsTrends for different age groupsNEET unemployment and inactivityGenderNEET by RegionNEET data sources4466892.International NEET Statistics103.3.13.2Characteristics of people who are NEETKey characteristicsRisk Factors in becoming NEET1111124.4.14.24.34.4Policies to reduce the number of people who are NEETPolicies to encourage young people to continue in education or trainingPolicies to help young people find sustained employmentPolicies to improve the employability of disadvantaged young peopleJobcentre Plus Support1313141618

3Commons Library Briefing, 24 August 2018Summary783,000 people aged 16-24 were Not in Education, Employment or Training (NEET) in thesecond quarter of 2018, 11.2% of all people in this age group. This was a decrease of25,000 from the previous quarter and a slight decrease from the second quarter of 2017.Studies have shown that time spent NEET can have a detrimental effect on physical andmental health, and increase the likelihood of unemployment, low wages, or low quality ofwork later on in life.37% of the young people who were NEET in the second quarter of 2018 wereunemployed. The remaining 63% were economically inactive, which means they were notworking, not seeking work and/or not available to start work.NEET trendsThe proportion of 16-24 year olds who were NEET remained relatively steady between2002 and 2008, and at the beginning of 2008 13.4% were NEET. The proportionincreased following the 2008 recession and peaked in July-September 2011 when 16.9%of 16-24 year olds were NEET (1.25 million people). Since then the number of people whoare NEET has been falling.GenderHistorically more women than men have been NEET, but the gap has narrowed overrecent years. In the second quarter of 2018, slightly more men were NEET than women.The main reason why there has been a fall for women is a large fall in the number ofwomen who are inactive because they are looking after their family or home.The number of men who are inactive has been rising over the last couple of years mainlydue to an increase in the number of men who were either long term sick or disabled.International NEET StatisticsIn 2016, the proportion of 15-19 year-olds who are NEET in the UK was higher than theOECD average, but it was less than the OECD average for 20-24 year olds and 15-29 yearolds.Of the OECD countries, Iceland had the lowest proportion of 15-29 year olds who areNEET (5.3%) and Turkey had the highest (28.2%).Policies to reduce the number of people who are NEETSome of the policies in place that aim to reduce the number of people who are NEETinclude: The September Guarantee entitles all 16 and 17 year olds to an offer of a suitableplace in education or training, while the participation age was raised to 18 in 2013. Various steps have been taken to help young people find sustained employment,such as the expansion of the apprenticeships scheme, reforms to technicaleducation, improved careers advice and the removal of Employer National InsuranceContributions to young people. The government is funding various schemes that look to improve the educationoutcomes for disadvantaged young people, and those with learning difficulties ordisabilities. Support for unemployed people to find work is provided throughJobCentre Plus.

4NEET: Young People Not in Education, Employment or Training1. UK NEET Statistics783,000 people aged 16-24 were Not in Education, Employment orTraining (NEET) in the second quarter of 2018, 11.2% of all people inthis age group. This was a decrease of 25,000 from the previous quarterand also a slight decrease from the second quarter of 2017. 1The proportion of 16-24 year olds who were NEET remained relativelysteady between 2002 and 2008, and at the beginning of 2008 13.4%were NEET. The proportion increased following the 2008 recession andpeaked in July-September 2011 when 16.9% of 16-24 year olds wereNEET (1.25 million people). Since then the number of people who areNEET has generally been falling.Of the 7.0 million people aged 16-24 in the second quarter of 2018: 3.8 million were in employment (55% of people aged 16-24%). 2.2 million were not in employment, but were in full-timeeducation (31%). 0.2 million were not in employment, but were in part timeeducation (3%). 0.8 million were not in employment or full-time or part timeeducation (NEET, 11%).1.1 Trends for different age groupsIn April-June 2018, 729,000 18-24 year-olds and 55,000 people aged16-17 were NEET. This represents 13% of 18-24 year olds and 4% of16-17 year olds.% of young people who are NEET: UK, 2002-2018Seasonally adjusted20%aged 18-2415%aged 16-2410%5%0%2002aged 16-1720042006200820102012201420162018The trend for 18-24 year olds mirrors the trend for 16-24 year olds, withincreases following the 2008 recession and a downward trend sinceJuly-September 2011. The number of people aged 18-24 who wereNEET in April-June 2018 increased by 18,000 from the previous quarter,but remained at a similar level to April-June 2017.1Data in this section are from ONS, Young People Not in Education, Employment orTraining (NEET), May 2018, and ONS, Labour Market Statistics, June 2018, and areseasonally adjusted, unless otherwise stated.

5Commons Library Briefing, 24 August 2018The number of 16-17 year olds who were NEET had generally beendecreasing since the mid-2000s until 2016. Since then there have beensmall increases for this age group. In April-June 2018, levels had fallenslightly from the previous quarter and were down 10,000 from theprevious year.16-17 year oldsThe main reason for the fall in the number of 16-17 year-olds who wereNEET was more young people continuing their full-time education. 89%of 16-17 year-olds were in full-time education at the end of 2015compared to 76% a decade previously. This increase occurred after theintroduction of the ‘September Guarantee’ in 2007, through which thegovernment committed to offer all 16 and 17 years olds a place ineducation or training (see section 4.1).In April-June 2018, 87% of 16-17 year-olds were in full-time education.18-24 year oldsThe trend for 18-24 year olds is primarily due to changes in the numberof people of this age who have been in employment.Between January-March 2007 and July-September 2011 the number of18-24 year olds in employment fell, with the employment rate for thisage group falling from 65% to 56%. Over the same period the numberof 18-24 year olds who were not in employment but were in educationincreased, but by a smaller amount (from 19% to 24%). Therefore thenumber of people who were either employed or in education fell, andthe number of people who were NEET increased.Since July-September 2011 there have been steady increases in thenumber of 18-24 year olds in employment with the employment rateincreasing to 62% in April-June 2018. Over the same period thenumber of 18-24 year olds who were not in employment but were ineducation remained relatively steady. Therefore the number of peoplewho were either employed or in education increased, and the numberof people who were NEET fell.Economic activity and Educational status of 18-24 year oldsUK, 2002-2018, Seasonally adjusted70%Employment60%50%40%Not employed, but 201420162018

6NEET: Young People Not in Education, Employment or Training1.2 NEET unemployment and inactivityA common misconception is that someone cannot be NEET unless theyare unemployed.This is not the case. Only 37% of the 783,000 young people who wereNEET in the second quarter of 2018 were unemployed (293,000). Theremaining 63% were economically inactive, which means they were notworking, not seeking work and/or not available to start work.Since 2011 the proportion of young people who were NEET and wereunemployed has been falling, following an increase after the 2007-2009financial crisis. At the end of 2011, 55% of those who were NEET wereunemployed.NEET 16-24 year olds by economic activity: UK, 2002-2018Seasonally adjusted, thousands800Inactive NEET600400Unemployed se, not all unemployed people will be NEET.60% of the 492,000 unemployed 16-24 year-olds in April-June 2018were not in education or training and were therefore NEET. Theremaining 40% were in some form of education or training, andtherefore were not NEET: 162,000 (33%) were in full-time education, but looking for work. 37,000 (6%) were in some other form of education or training,but looking for work.1.3 GenderIn the second quarter of 2018, of the 783,000 people who were NEET,395,000 were men and 388,000 were women.Economic ActivityWomen who are NEET are more likely to be economically inactive thanmen. In the first quarter of 2018, 72% of the women who were NEETwere economically inactive. This compares to 53% of the men.

7Commons Library Briefing, 24 August 2018Inactive and unemployed NEET by gender, Q2 4Unemployed1090MenWomenMore women are inactive as they are more likely to be looking afterfamily and/or home. In 2017, around half of those women who wereNEET were inactive as they were looking after family and/or home, whileless than 5% of NEET men were inactive for the same reason. 2Gender gapHistorically more women than men have been NEET. Between 2002 and2010 there were at least 100,000 more women who were NEET thanmen in almost every quarter. As the chart below shows, the gapbetween the number of men and women who were NEET has rapidlynarrowed over recent years.NEETs by gender 2002-2018Seasonally adjusted: 6200820102012201420162018In the third quarter of 2016 more men were NEET than women for thefirst time since comparable records began, and since then the numberof men and women aged 16-24 who were NEET have been at similarlevels. In the second quarter of 2018, slightly more men were NEET thanwomen.The gap has narrowed because the number of economically inactivewomen who were NEET has been falling since 2012, whereas thenumber of economically inactive men who were NEET has been risingsince 2014, as shown in the chart below.2ONS Labour Force Survey microdata: Office for National Statistics. Social Survey Division, NorthernIreland Statistics and Research Agency. Central Survey Unit. (2017). Quarterly Labour Force Survey, January March, 2017. [data collection]. UK Data Service. SN: 8195, http://doi.org/10.5255/UKDA-SN-8195-1

8NEET: Young People Not in Education, Employment or TrainingEconomically inactive NEETs by gender 2002-2018Seasonally adjusted: 0102012201420162018The main reason why there has been a fall for women has been becausethe number of women who are inactive as they have been eitherlooking after their family or their home has decreased substantially. In2012, almost three quarters of NEET women were inactive for thisreason, while only around half were in 2017.The number of NEET men who are economically inactive as they arelooking after their family or their home has also fallen over the last fewyears so this hasn’t caused the increase in economic inactivity for NEETmen.One of the reasons for the increase was a large rise in the number ofmen who were either long term sick or disabled. Between 2014 and2016 the average number who were inactive for this reason increasedby over 20,000 men, an increase of 37%.1.4 NEET by Region 3In October-December 2017, 11.1% of 16-24 year-olds in England wereNEET (note that this figure is not seasonally adjusted).Of the regions within England, the North East had the highestproportion of young people who were NEET (14.0%) and the SouthWest had the lowest (9.4%).3Regional figures published in the Department for Education’s Statistics: NEET andparticipation (last updated June 2017)From March 2018,NEET figures byregion will bepublished annuallyrather thanquarterly, and willnext be updatedfor the OctoberDecember 2018quarter.

9Commons Library Briefing, 24 August 201816-24 year olds NEET by region, Q4 2017Not seasonally adjustedNorth East14.0%West Midlands13.1%East of England12.2%North West11.2%East Midlands11.1%England11.1%Yorks & Humber10.8%LondonSouth EastSouth West10.4%9.7%9.4%1.5 NEET data sourcesThe Office for National Statistics publishes NEET estimates for the wholeof the UK, but not for individual UK countries. NEET statistics areroutinely published for England, Wales and Scotland, but as thedefinition of NEET varies by country they should not be compared. England: The Department for Education’s NEET and participationstatistics collection includes NEET statistics based on Labour ForceSurvey data for England for young people aged 16 to 24, as wellas participation figures for those aged 16 to 18. Wales: The Statistical First Release Young people not ineducation, employment or training (NEET) provides NEETestimates for Wales. As at the end of 2017, 16.2% of 19-24 yearolds and 9.5% of 16-18 year olds were NEET in Wales. Scotland: Scottish NEET estimates were published as part of theAnnual Local Area Labour Markets publication up until 2014. Theofficial measure of NEET in Scotland is based on those aged 16-19and is now released through Skills Development ScotlandParticipation Measure. In 2017, 4% of 16-19 year olds were notparticipating in education, employment or training in Scotland. Northern Ireland: The Northern Ireland Assembly does notroutinely publish NEET figures. In 2013, an estimate of thenumber of people who were NEET was produced by addingtogether the number of economically inactive and unemployed16-24 year olds. In Quarter 1 2013, approximately 19% of 16-24year olds were NEET in Northern Ireland. 44NI Assembly briefing paper, Counting NEETs, 29 August 2013

10 NEET: Young People Not in Education, Employment or Training2. International NEET StatisticsThe OECD publishes NEET data by age group – though these are notdirectly comparable with UK national estimates. 5The proportion of 15-29 year olds NEET in the UK (13.2%) is below theOECD average (13.9%). However, the proportion for 15-19 year olds inthe UK (8.4%) was above the OECD average (6.0%).% NEET by age group: erlandNorwayGermanyJapan**AustriaNew ZealandAustraliaLithuaniaSloveniaCzech RepublicBelgiumCanadaUnited KingdomFinlandIsraelOECDUnited akiaIreland*FranceChile*ColombiaSpainMexicoCosta RicaBrazil*GreeceItalyTurkeyAged 11.417.98.714.319.017.18.19.418.4Aged 25.032.232.9Aged .028.2* Data for 2015** Data for 2014Source: OECD, Youth not in employment5OECD (2017), Youth not in employment, education or training (NEET) (indicator). doi:10.1787/72d1033a-en (Accessed on 28 December 2017)

11 Commons Library Briefing, 24 August 20183. Characteristics of people whoare NEET3.1 Key characteristicsThe chart below shows the key characteristics of people who are NEETusing data from the ONS Labour Force Survey, over the four quartersto Q1 2018. It shows that: The proportion of 16-24 year olds who were NEET was higher forthose with disabilities (29%) than those without (9%). A higher proportion of 16-24 year olds without any qualificationswere NEET (23%) than the proportion of those qualified to GCSElevel and above (9%). By ethnicity, the proportion of 16-24 year olds who were NEETwas highest for those from either a Pakistani/Bangladeshi or aMixed background (12%) and lowest for those fromIndian/Chinese/Other Asian backgrounds (7%).% of 16-24 year olds who are NEETQ2 2017 to Q1 2018 (four quarter average)Equality Act DisabledNot Equality Act Disabled9%No qualificationGCSE and above9%29%23%Pakistani/ BangledeshiMixed/Multiple ethnic groups/ OtherWhiteBlack/African/ Caribbean/ Black BritishIndian/ Chinese/Other Asian12%12%11%11%7%Overall11%0%5% 10% 15% 20% 25% 30% 35%Source: ONS Labour Force Survey microdata and House of Commons Library calculationsNotes:Disability is defined using the Government Statistical Service harmonised standard definition. Thiscovers people reporting (current) physical or mental health conditions or illnesses lasting, orexpected to last, 12 months or more, which reduce their ability to carry out day-to-day activities.Those who gave no response have been excluded from the analysis.GCSE and above includes those with a highest qualification of GCSEs, A-Levels, Higher Education orDegrees.The Longitudinal Study of Young People (LSYPE) in Englandinterviewed a group of young people who were aged 19 at thebeginning of the 2009/10 academic year. 6Of the people interviewed, 14% were NEET at the time of the survey,35% had been NEET at some point between the ages of 16 and 19,while 14% had been NEET for a period of at least a year.6DfE, Youth cohort study and longitudinal study of young people, July 2011

12 NEET: Young People Not in Education, Employment or TrainingThe study found that participants with certain characterics were morelikely to be NEET. For each of the following groups, over half were NEETat some point between the ages of 16 and 19, and over a quarter wereNEET for at least a year: Those with their own child. Those who been permanently excluded or suspended from school. Those who hadn’t achieved 5 A*-C GCSE grades. Those who were eligible for free school meals.It also found that disabled people were more than twice as likely tohave been NEET at the time of the study than those without a disability.3.2 Risk Factors in becoming NEETThe Audit Commission produced a report in July 2010, Against theodds, which examined NEET characteristics, the geographic distributionof NEET people and how government can work effectively to help them.Contained in this report is a table (below) which summarises theincreased likelihood of young people becoming NEET associated withcertain risk factors.Increased chances of being NEETFactorIncrease in chance of being NEET forsix months or moreBeing NEET at least once before7.9 times more likelyPregnancy or parenthood2.8 times more likelySupervision by youth offending team2.6 times more likelyFewer than three months post-16 education2.3 times more likelyDisclosed substance abuse2.1 times more likelyResponsibilities as a carer2.0 times more likelySource: Audit Commission, analysis of Connexions data from fieldwork areas (approximately 24,00people), 2010The Department for Education funded a Report on students who areNEET by the Institute of Education which was published in September2014 and which included a section on risk factors. Their conclusionswere that: The most significant educational risk factor was low educationalattainment at GCSE. Reasons cited for low GCSE attainmentincluded a lack of motivation, poor health (physical and mental)and having Special Educational Needs. A range of personal risk factors were identified including healthproblems, caring responsibilities and difficult family circumstances(such as being in care or experiencing a breakdown in relationshipwith parents). Structural risk factors were also identified which included difficultlabour market conditions, a lack of training and appren

Likewise, not all unemployed people will be NEET. 60% of the 492,000 unemployed 16-24 year-olds in April-June 2018 were not in education or training and were therefore NEET. The remaining 40% were in some form of education or training, and therefore were not NEET: 162,000 (33%) were in full-time education, but looking for work.File Size: 465KB

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