Alan Milburn’s Young People and Work diagnostic report marks one of the most significant recent assessments of youth participation in the UK labour market. It is the first report of an independent review, designed to diagnose why over a million young people are not in education, employment or training (NEET). A ‘solutions’ report is due to be published in early Autumn 2026.
What does the Milburn Review say?
At its core, the report argues that the UK faces a “generational fault line” in the transition from education into work. It sets out a comprehensive diagnosis of how systems designed to support young people — education, health, welfare and the labour market — are failing to work together.
The report makes clear that this is not a temporary problem. The NEET rate has remained persistently high for decades and is becoming more structural. Today’s challenge is not just youth unemployment, but long-term detachment from the labour market, with many young people not seeking work at all.
Importantly, the Review rejects the idea that young people lack motivation, or employers don’t want to hire young people. Instead, it finds that systems have failed to adapt to a generation facing new pressures, from mental ill-health to a changing labour market.
Why it matters to businesses
The Review highlights a growing mismatch between what businesses need and how effectively young people are supported to enter work.
On the demand side, the labour market itself has changed. Entry-level roles have declined and recruitment processes have become more complex and less accessible, creating barriers for those starting out.
At the same time, employers report challenges around work readiness, confidence and support needs. BCC research shows that more than half of firms are facing skills shortages.
For businesses, this is a productivity and growth challenge. The Review estimates significant economic costs from youth inactivity, as well as long-term “scarring” effects on earnings and participation.
Crucially, employers remain part of the solution. The Review notes an “overwhelming desire” among businesses to employ young people, but that this is often constrained by rising costs, risk and a lack of support structures.
Key takeaways for Chambers and employers
Several practical insights emerge for businesses and Chamber networks:
1. Recruitment approaches need to adapt
The report highlights barriers such as complex application processes and a lack of feedback — the so‑called “applications black hole”. Employers are encouraged to simplify recruitment and provide clearer pathways in.
2. Entry routes into work must be strengthened
Traditional stepping stones such as part-time work, apprenticeships and work experience have weakened. Businesses can play a role in rebuilding these routes.
3. Support and flexibility matter
Many young people have fluctuating health needs and require more flexible working patterns to manage and remain in work. Employers who can offer this are better placed to retain talent.
5. Partnerships are key
Local collaboration between employers, education providers and other partners is critical. We know Local Skills Improvement Plans (LSIPs) are effective ways to align training with real job opportunities.
BCC’s assessment
The Milburn Review must be a wake-up call for policymakers. The Review’s diagnosis mirrors what businesses have been reporting for a long time.
From a business perspective, the message is twofold. First, there is a clear appetite among firms to employ young people and invest in future talent. Second, this ambition is being held back by rising employment costs and risks, which are limiting recruitment and training.
The BCC therefore calls for urgent and coordinated action. This includes earlier careers education, more accessible training routes, and reducing the cost and risk for employers taking on young people.
We also highlight the importance of employer-led solutions. Chamber-led LSIPs are already helping to bridge the gap between education and employment and can play a central role in delivering change at scale.
A moment for action
The Milburn Review is clear: this is not a problem that will resolve itself. Without action, a generation risks being locked out of the labour market, with consequences for businesses, communities and economic growth.
The forthcoming final report will set out the solutions. But the direction of travel is already clear: stronger partnerships, better pathways into work, and a labour market that is willing and able to bring young people in.