Youth unemployment at its highest point for a decade: 'It's like running into a brick wall'

Journalist, phone salesman, supermarket manager, trainee accountant. Since graduating from the University of Leeds last summer, Charlie has applied for more than 50 jobs across disparate fields – but like many young people he remains unemployed.

“I’m running into a brick wall,” the 22-year-old told Big Issue. “It’s particularly frustrating to be run through assessment after assessment after assessment – with the personality ones normally being just AI quizzes. And then you get rejected, and you receive no feedback.

“The whole experience is very demoralising.”

Charlie is not alone. According to new Office for National Statistics figures published on Tuesday (17 February), unemployment among 16–24-year-olds has risen to 16.1% – nearly one in six young people unable to find work.

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It is the highest rate in a decade and marks the first time since records began that UK youth unemployment has overtaken the EU average, currently 14.7% in the final quarter of 2025.

The overall unemployment rate also continued to rise at the end of last year, reaching 5.2% – or 1.88 million people – the highest level for nearly five years.

But “the pain is not evenly spread,” said Ben Harrison, director of the Work Foundation at Lancaster University.

“Young people, disabled people and men are bearing the brunt of the rise,” he warned. “More young people are actively seeking work, but too many are struggling to secure it.”

Those looking for entry-level roles are contending with a stagnant economy, labour-market oversaturation and accelerating AI automation.

Meanwhile, hikes in employer national insurance contributions and a rise in the minimum wage has seen slow hiring from businesses.

The jobs that do exist are subject to intense competition, often attracting hundreds of applicants – something Charlie has experienced first-hand.

The Philosophy, Politics and Economics graduate has already secured some work experience: he spent a year as an assistant economist in the civil service and worked three third-sector roles while studying.

Despite this, he rarely hears back from employers.

“Every single employer has pulled the same line of due to an exceptional number of applications, we can offer no feedback,” said the Abergavenny local. “So I’m denied a job. And then I am told, actually, we’re not going to let you improve to make it easier to find the next one.”

He lives with his family in rural Wales but says he would happily relocate for work.

“I dread to think what someone who hasn’t got a year’s savings from the last job they worked to hold on to would be doing at this point.”

Almost 950,000 people graduated from university last year, according to official figures. Data from the Institute of Student Employers show competition for graduate jobs has reached a record high, with applications up 15%.

The British Standards Institution polled more than 850 business leaders across Australia, China, France, Germany, Japan, the UK and the US. Nearly half (43%) said they expect to reduce junior roles over the next year due to efficiencies driven by AI.

Livvy, a 2025 graduate from the University of Edinburgh, says she feels “very lucky” to have secured two jobs after a four-month search – following years of “unpaid labour” through internships and volunteering. Most of her friends, she says, have not been so fortunate.

“[Unemployment] has a massive impact,” she told Big Issue. “You feel directionless, you don’t have any sense of agency over your future or what you’re going to do.”

“[When I was looking] it was obviously very stressful… I am still living at home, I can’t afford to move out. My parents are very supportive, but even they didn’t understand the scale of the challenge. It’s very different to sort of 30 years ago, obviously, when you could sort of walk into a job.”

Graduates are not the only ones feeling the squeeze. Entry-level roles in retail, hospitality and logistics are shrinking amid rising costs and automation.

Last year, the boss of fashion retailer Next warned that his company would find it harder to recruit into entry-level roles, as higher national insurance contributions made employing younger workers more difficult to justify.

New research from The King’s Trust found that three-quarters (74%) of 16–25-year-olds worry there will not be enough jobs for people like them, while more than half (59%) are concerned about the impact of AI on their future job security.

To Livvy, this disillusionment – compounded by high housing and living costs that disproportionately affect younger people – is likely to have political consequences.

“We’re already seeing it with shifts to both the radical right and the left,” she said. “The legacy parties haven’t served young people well at all, and so there’s a huge amount of disillusionment, a huge amount of discontent. I think we’re only going to see that get worse.”

The Greens now lead in the polls among under-30s, with a 37% vote share among 18-24-year-olds. Labour trails on 21% while Reform UK holds 9%.

The government has pledged additional support for young people.

“We know there is more to do to get people into jobs,” said work and pensions secretary Pat McFadden.

“Our £1.5bn drive to tackle youth unemployment is a key priority and this month we announced that we’ll make it easier for young people to find and secure an apprenticeship, which comes on top of our investment to create 50,000 new apprenticeships.”

The government’s Get Britain Working white paper also outlines proposals for a youth guarantee scheme offering training and apprenticeships.

However, economists have urged ministers to introduce more targeted support for graduates, too.

Charlie, for one, wants the chance to change direction.

“I would like to see them offer the opportunity for free retraining to every graduate in trade skills so we can rebase ourselves into another profession,” he said.

“I want to be employed. I want a future. I don’t have one until I get that employment.”

Big Issue Recruit, Big Issue’s specialist recruitment service, is also working to help people who’ve experienced challenges like homelessness, long-term unemployment, or a lack of qualifications into employment.

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