A major new report led by Alan Milburn has warned the UK risks a “lost generation” of young people, with rising numbers locked out of education, employment and training.
The independent review into young people and work highlights a growing crisis, with more than one million young people now classified as not in education, employment or training (NEET).
Without urgent action, the report warns this number could rise further, with as many as one in six young people affected within the next five years.
A system under strain
The Milburn review is clear in its diagnosis: this is not a failure of young people, but a failure of the systems designed to support them.
Across education, employment, health and welfare, the report points to a system that is no longer working effectively to support young people into meaningful work.
Key challenges identified include:
- A sharp decline in entry level roles and apprenticeship opportunities
- Increasing numbers of young people facing barriers linked to mental health and disability
- A lack of clear routes from education into work
- A disconnect between employer demand and accessible training pathways
It highlights a stark imbalance at the heart of the system: for every £1 spent on helping young people into work, £25 is spent on supporting them through benefits.
This reinforces the need to shift focus towards earlier, more accessible support that enables young people to move into employment and reduces longer term reliance on support systems.
A “generational fault line”
The report describes a widening “generational fault line”, with young people struggling to access the first steps into work and build the confidence and experience needed to progress.
Many young people are actively seeking opportunities but face systemic barriers, with the review emphasising that most young people in this position want to work or train but cannot access the right support.
Latest data also shows youth unemployment remains significantly higher than the wider workforce, reinforcing concerns about long term economic and social impact.
Why this matters now
For organisations like Cosmic, these findings reflect a growing challenge we see across the South West.
Young people are navigating a labour market where:
- entry level roles are harder to access
- expectations for digital and transferable skills are increasing
- support to build confidence and capability is often fragmented or difficult to access
At the same time, employers are facing persistent skills shortages, creating a disconnect between opportunity and access.
Connecting the dots
This report comes alongside the recent Skills England Annual Skills Report, which warns that the UK workforce is falling behind in digital and AI skills.
Together, these reports highlight a critical gap:
- young people are struggling to enter the workforce
- existing workers need significant upskilling to keep pace with change
Without coordinated action, these issues risk reinforcing each other, widening inequality and holding back economic growth.
Cosmic’s role
At Cosmic, we are working to bridge this gap by supporting both individuals and employers with practical, accessible digital and employability skills programmes. We are also working in partnership with specialist organisations, including youth charities and support services, combining their expertise with our digital skills provision to support young people facing a range of complex barriers to entering employment. This joined up approach helps build not only skills, but also confidence, readiness for work and clear pathways forward.
In the South West, pilot activity has already demonstrated the impact this approach can have. Early results show job outcomes more than doubling within a matter of months, alongside increased confidence and progression for participants.
These insights reinforce the importance of targeted, place-based support that builds both capability and opportunity.
Emma Moore, Head of Business Development at Cosmic, added: “This is about more than employment. It is about opportunity, confidence and long-term life chances.
Too many young people are being left behind at the very point they should be starting their working lives. That is not a reflection of them, it is a reflection of a system that is not meeting their needs.
We need to move beyond awareness and focus on practical action, creating clearer pathways and more accessible support so that no one is locked out of opportunity.”
Looking ahead
The Milburn review is a clear wake up call.
Without urgent and coordinated intervention across education, employers, health and support systems, the UK risks leaving a generation behind.
However, it also highlights an opportunity to rethink how we support young people into work, invest in foundational skills, and build pathways that are accessible, inclusive and aligned to the realities of today’s labour market.
Get involved
If this resonates with your organisation or your work, we would welcome a conversation.
We are working with partners across the South West to support young people and employers with practical, accessible skills programmes, and are always keen to collaborate with organisations who share this ambition.