UK Report Finds Nearly One Million Young People Unemployed Due to Smartphones and Anxiety

Alan Milburn, the former health secretary turned government jobs tsar, did not mince words. In his interim report on young people and work, published in May 2026, he warned that Britain faces an "economic catastrophe" unless it confronts a generation of young people "rewired" by smartphones and trapped by anxiety [1]. The headline figure: 957,000 people aged 16 to 24 were not in education, employment, or training (NEET) between October and December 2025 — roughly one in every eight young Britons [2].

The report paints a picture of what Milburn calls a "bedroom generation," permanently plugged into phones and social media, suffering from poor sleep and declining concentration. "Every one of a group of ten 12 and 13-year-olds told us they went to bed between midnight and 3am because they were scrolling on their phone," the review warns [3].

But whether smartphones and anxiety are the primary cause — or a symptom of deeper structural failures — is the subject of intense debate among economists, employers, health researchers, and the young people themselves.

The Numbers: Where Britain Stands

The 957,000 NEET figure breaks down into two groups: 43% were unemployed (actively seeking work), while 57% were economically inactive, meaning they were not working and not looking for work [2]. This is a significant distinction. The economically inactive group includes those with long-term illness, caring responsibilities, and those who have simply given up on the labour market.

Source: ONS Labour Force Survey

Data as of Feb 1, 2026CSV

The current NEET rate of 12.8% is lower than the post-2008 financial crisis peak of 15.6% in 2011, but it has been climbing steadily since a low point of around 10.9% in 2019 [2]. The trajectory is what alarms policymakers: after years of improvement, the trend has reversed.

Internationally, the UK's youth unemployment rate of 14.3% places it above Germany (6.9%), South Korea (6.5%), and Japan (4.0%), but below France (19.3%) according to ILO data for 2024 [4]. The US rate stands at 8.9%.

Source: ILOSTAT — International Labour Organization

Data as of Dec 31, 2024CSV

The Smartphone and Anxiety Thesis

Milburn's report identifies a "rising tide of mental ill-health, anxiety, depression, neurodiversity" as the central driver of youth worklessness [1]. The share of economically inactive young people who cite mental health as their primary barrier to work has nearly doubled, from 24% in 2011 to 43% in 2025 [3].

Source: Health Foundation / ONS

Data as of May 1, 2026CSV

The Health Foundation's independent analysis supports the scale of the shift: the share of NEET young people reporting a work-limiting health condition rose from 26% in 2015 to 44% in 2025, a 70% increase. Mental health conditions and autism now account for more than two-thirds of those citing poor health as a barrier [5].

The report draws a connection between this mental health deterioration and smartphone use, arguing that excessive screen time has degraded sleep quality and attention spans among young people. Milburn contends that employers will increasingly need to provide "a high level of pastoral care for this cohort of young people living with mental distress" [3].

However, the report does not cite randomized controlled trials establishing a causal link between smartphone use and labour market withdrawal. The evidence base it draws on is largely observational, relying on correlations between rising screen time and rising mental health referrals. The distinction matters: correlation can reflect a common upstream cause rather than a direct causal chain.

The Cross-National Problem

If smartphones are the primary driver, a stubborn question follows: why do countries with equal or higher smartphone penetration have lower youth unemployment? South Korea has near-universal smartphone ownership among young adults — effectively 100% among those aged 20 to 30 — yet its youth unemployment rate is 6.5% [6][4]. The Netherlands, with 87% smartphone penetration, consistently posts youth NEET rates below the OECD average [6].

The Milburn interim report does not directly address this cross-national comparison. Critics argue it undermines the smartphone thesis: if the technology were the decisive variable, its effects should appear across borders. What differs between the UK and these countries is not phone ownership but labour market structure, vocational training systems, housing costs, and welfare design.

What the Critics Say: Structural Explanations

Labour economists point to a set of structural factors that the smartphone framing risks obscuring.

Precarious work and zero-hours contracts. The number of workers on zero-hours contracts in the UK has reached nearly one million, concentrated in the low-pay service sectors — hospitality, retail, care — where young people disproportionately work [7]. Research links precarious employment directly to worsened mental health, raising the possibility that the labour market itself is generating the anxiety the report attributes to phones [7].

Rising employer costs. The Centre for Social Justice's Wasted Youth report found that rising employment costs have made employers wary of hiring young British workers. Between January 2020 and December 2024, there were 49,000 fewer Britons under 25 on payrolls, while the number of under-25 non-EU migrants in employment rose by 258,000 [8]. Higher minimum wages for younger workers, while well-intentioned, can incentivize firms to substitute older or migrant labour.

Welfare system design. Milburn's own review found that the state spends 25 times more on welfare payments for young people than on measures to help them into jobs [3]. The CSJ separately found that working-age health benefit spending is on course to reach 1.9% of GDP by 2030 — nearly double the level of a decade ago — with the Office for Budget Responsibility projecting health and disability benefits will hit £100 billion by 2030 [8].

Post-pandemic scarring. Youth unemployment spiked during Covid-19 lockdowns, and the recovery has been uneven. An economist writing in The Conversation noted that while unemployment improved between late 2020 and 2022, it has since resumed climbing, suggesting the pandemic disrupted career entry points in ways that persist years later [9].

Source: World Bank Open Data

Data as of Dec 31, 2025CSV

The Mental Health System: Overwhelmed and Underfunded

Whether the cause is smartphones, structural inequality, or some combination, the mental health system young people rely on is buckling under demand.

NHS data shows that 78,577 young people referred to Child and Adolescent Mental Health Services (CAMHS) waited over a year for treatment in 2023/24 — a 52% increase from the previous year. Of those, 34,191 waited more than two years [10]. By March 2025, 385,540 children and young people were still waiting for a first contact from community mental health services, a 14.4% increase year-on-year [10].

The funding gap tells its own story. The 2019 NHS Long Term Plan committed to increasing mental health spending by at least £2.3 billion per year in real terms. By 2023/24, actual spending had risen by only £1.4 billion — a shortfall of roughly £900 million against the plan's ambitions [11]. Since January 2020, the number of under-18s in contact with secondary NHS mental health services has more than doubled, reaching over one million in 2024-25 [11].

The Health Foundation's analysis highlights a feedback loop: difficulties accessing timely mental health support through schools, colleges, or the NHS contribute to young people disengaging from work or education, which in turn worsens their mental health [5]. Young people with a work-limiting health condition are roughly three times more likely to be NEET — about 1 in 3, compared to 1 in 10 for those without such conditions [5].

Regional Disparities

The crisis is not evenly distributed. One in six children (16.6%) in the North East of England lives in a long-term workless household, more than twice the rate in London (8.1%) [8]. This gap widened by over a third between 2023 and 2024 alone.

The CSJ data also reveals a long-term scarring effect: young male NEETs are ten times more likely to remain economically inactive 20 years later, leaving them "poorer, sicker, and more likely to die young" [8]. The regional concentration of worklessness — in post-industrial areas with fewer entry-level jobs, worse transport links, and higher benefit dependency — suggests that geography and local economic structure matter at least as much as screen time.

What Counts as 'Workless'?

The NEET classification itself deserves scrutiny. Under the Office for National Statistics definition, anyone not in formal education, training, or employment counts as NEET, regardless of whether they are doing unpaid care work, irregular gig-economy tasks, or informal creative work [2].

ONS data shows that nearly two in five young people providing 50 or more hours of unpaid care per week are classified as NEET — roughly 39% for both males and females — compared with about one in eight among those providing no care [12]. These young carers are doing economically and socially valuable work; their classification as "workless" inflates the headline figure and potentially distorts policy responses.

Similarly, the gig economy complicates the picture. A young person doing intermittent delivery or platform work may fall below the hours threshold to be counted as employed, landing in the NEET category despite actively participating in the labour market. The true number of genuinely disengaged young people is likely lower than 957,000, though precisely how much lower is difficult to determine from existing data.

What Happens Next: Recommendations and Evidence Gaps

The Milburn interim report calls for employers to adapt to the needs of this generation, providing greater pastoral support and workplace mental health provision [3]. His full report, due in September 2026, is expected to include more specific policy recommendations [13].

Make UK, the manufacturers' trade body, has called for stronger apprenticeship support, better employer engagement with schools, and reform of wage and employment regulations to reduce the risk for firms hiring young workers. The manufacturing sector, which provides 2.6 million jobs across the UK, faces a "time-critical" skills crisis as tens of thousands of workers approach retirement [14].

The Sutton Trust and Catch22, among other organizations, have emphasized the need for early intervention — reaching young people before they disengage — and reforming the welfare system so that support is not contingent on having a diagnosed health condition [15][16].

What remains thin is the evidence base for specific interventions. The Milburn review has not yet published cost-per-person projections for its recommendations, and there is limited UK-specific evidence from randomized controlled trials showing that digital-use restrictions or cognitive behavioural therapy programs move young people into sustained employment. Observational studies suggest these approaches can improve mental health outcomes, but the pathway from improved wellbeing to stable employment is not automatic, especially when structural barriers — housing costs, transport, precarious contracts — remain in place.

The Bigger Picture

The debate over Britain's "bedroom generation" is, at its core, a debate about which explanation policymakers choose to prioritize — and therefore which solutions they fund.

If smartphones and anxiety are the primary problem, the response centres on digital literacy programs, screen time interventions, and expanded mental health services. If the primary drivers are structural — a labour market that offers young people precarious, low-paid work; a welfare system that spends on benefits rather than job entry; a mental health system running years behind demand — then the response requires investment in vocational training, employer incentives, CAMHS funding, and regional economic development.

The evidence suggests the answer is not either/or. Mental health conditions are genuinely rising among young people, and smartphone use is plausibly one contributing factor. But attributing a complex, multi-causal crisis to a single technology risks producing policy that treats symptoms while ignoring the structural conditions in which those symptoms flourish.

Amazon UK's country manager, responding to the Milburn findings, rejected claims that young people simply lack motivation, framing the problem instead as "a failure of the educational system to align with modern psychological realities" [3]. That framing — systems failing people, rather than people failing systems — may be closer to what the data actually shows.

The 957,000 figure is real, and the trend is moving in the wrong direction. Whether Britain addresses it with phone bans or job guarantees, with CBT apps or apprenticeship reform, will depend on how honestly it reads its own evidence.