Abstract:
This report uses administrative data to examine the rise in the number of young people not in employment, education or training (NEET) in recent years. It shows trends in payrolled employment and out-of-work benefit claims, both overall and by subgroup, and compares them with trends in the Labour Force Survey - the official source of NEET statistics, but one which has faced well-documented challenges with response rates in recent years. The report considers whether the recent rise in NEET rates reflects a cyclical downturn in labour demand, or whether there may be structural changes in the economy that specifically affect young people. Finally, it focuses on one widely discussed structural factor - the rise in minimum wages for young people - and assesses what we can learn about its impact on youth employment.
