In the last few years, the conversation around NEET, job security, employment, the economy – and inevitably, AI – has come to dominate blogs, reports, and the news segments. With the rise of LLMs and its seemingly endless and increasingly smarter applications, it feels we are constantly bombarded with information and speculations about disappearing jobs, shifting profit margins, and the future of productivity, art and innovation.

Much of this debate has centred on young people and their prospects in the labour market, raising concerns about skills development and access to entry-level roles. But while this issue is pressing in its own right, the picture becomes even more challenging when considering those already outside traditional routes into work.

What is NEET?

In the UK today, around 12–13% of all 16–24-year-olds are classified as NEET (Not in Education, Employment, or Training) according to the Office for National Statistics. That’s more than 900,000 young people in total, more than the population of Leeds. The proportion of NEET youth has been on the rise since 2021 (when it dipped below 10%), and, in the current climate, seems set to continue to increase. 

Perhaps this is not surprising. In times of economic crisis, the number of NEET young people has been found to go up. For example, according to a 2011 study by Bell & Blanchflower, young people’s employment rates suffered disproportionately after the 2008 Great Recession. Similarly, young people were found to be disproportionately impacted by the COVID-19 pandemic, hurting their socio-economic, fiscal security and mental health.

However, these impacts are not felt equally. Many factors influence the NEET status across different communities, but individuals from disadvantaged backgrounds are consistently found to be at higher risk. For example, young people from lower-income households are significantly more likely to become NEET, especially if growing up without adult role models in employment or education. Higher rates of NEET can also be observed in certain ethnic minority groups, as well as in women – especially married young women or those with caring responsibilities.

Why NEET Status Matters Long-Term

Consequences of being NEET extend far beyond a temporary gap in employment.

Extensive research has explored the link between NEET status and a range of adverse outcomes. A 2025 review examined a wealth of 159 studies focussing on young adults, and summarised the results as follows: NEET individuals experience long-term socioeconomic disadvantages and higher mental health risk, as well as lower self-esteem and social exclusion. Many studies have also found that NEET individuals are associated with increased substance abuse risks, which not only exacerbates existing challenges but also hinders reintegration into education, training, and employment opportunities.

Without support, NEET youth risk a cycle of growing disadvantage, with no way out. So, what happens when we go from: chronic disadvantages, COVID pandemic, and now the rise of AI?

Rethinking Skills in the Age of AI

Yes, it’s time to talk some more about AI. Everyone’s most favourite topic.

Since the launch of ChatGPT in November 2022, artificial intelligence has reshaped expectations around productivity and employability. This, in turn, is transforming the labour market in real time, creating new demands, skills requirements, and ways of working. What that means for the workforce is still very much to be determined: does it mean more jobs or less? Are certain full-time or freelance roles (especially in the creative sector) disappearing, and what will replace them?

While there are no straightforward answers to those questions yet, one thing does seem clear. The influence of AI is already extending beyond explicitly “AI jobs.” As AI is integrated in the majority of sectors and businesses, the hunt for AI literacy is also taking root – from marketing and administration to public services, retail, and creative industries.

The Good News: AI Skills Aren’t Just Technical

A 2025 study of around 11 million UK job postings between 2018 and mid-2024 found that UK firms are increasingly seeking AI-based skills, often with reduced expectation for degrees to back this up. In fact, the UK government projections suggest AI-related occupations to grow by 12.4% between 2024 and 2035. This is important – because we are now talking about the difference between viewing AI as a threat…  or a chance to change the status quo.

Whereas not long ago ‘AI skills’ evoked the vision of profound technical expertise (such as programming, engineering, and machine learning), today’s in-demand skills are becoming more accessible and transferable. Take the following examples:

• AI tool literacy: knowing how and when to use AI systems
• Critical thinking: writing effective prompts, checking outputs, spotting errors
• Creativity: using AI to enhance rather than replace human input
• Adaptability: integrating new tools into workflows

In other words, the growing value lies not only in building AI systems, but in applying a human lens to the limitations of machines.

This means that AI represents a new and different kind of opportunity for NEET youth. Without the traditional requirement of a degree, AI literacy training could provide an entry point into career paths that were previously out of reach – allowing young people to develop in-demand skills and step into professional sectors.

What Actually Works for NEET Interventions?

How this potential translates into reality is another question. While AI skills may be increasingly accessible in theory, in practice they remain heavily dependent on access to technology and infrastructure.

A 2025 UNESCO study of 4,268 young people across 128 countries highlights the scale of this challenge. Only 34% of respondents reported having access to AI-enhanced learning tools at school, while 24% still lack reliable connectivity or appropriate equipment. At the same time, demand is clear: 44% of respondents expressed a desire for AI training but lack access.

However, even where access exists, skills provision alone is unlikely to be sufficient. Evidence suggests that stand-alone training programmes often produce limited or inconsistent results, particularly when they fail to address the wider structural and personal barriers young people face. 

This points to the main challenge: improving outcomes for NEET youth is not simply a question of skills, but of addressing multiple, overlapping disadvantages.

The complex causes that lead to NEET status means that creating effective interventions requires a similarly multi-faceted approach beyond single activities. When examining 9 types of interventions, a 2024 review concluded that some of the different types of programmes examined,  Individual Placement and Support (IPS) that assist NEET individuals in finding a job and providing ongoing support, were most effective. However, coaching and training programmes also provided positive outcomes by boosting confidence, skills and self-esteem.

So, supported vocational training, apprenticeships, and on-the-job learning programmes – particularly those that integrate mentorship and wraparound support – may offer a promising model. Embedding AI literacy within these pathways could ensure young people are not only entering employment, but entering the future labour market equipped for it.

So, Can AI Improve Employability Outcomes for NEETs?

Potentially, but only under the right conditions.

AI alone will not solve the structural drivers of youth disengagement. But if AI literacy is:

• Accessible (addressing digital poverty),
• Practical (focused on applied, human-centred skills), and
• Embedded within supported employment pathways,

…then it could become part of a broader strategy to improve employability outcomes.

The challenge now is ensuring that the AI revolution does not leave NEET youth behind — but instead becomes part of the solution.

With STEM Pathway, Make More offers young people a structured journey into STEM careers: from hands-on workshops to real opportunities like apprenticeships and mentorship. It’s designed to move beyond inspiration and provide clear, supported routes into the future workforce. Find out more about our events here.

Get in touch with us by filling out our form, via info@make-more.org or give us a call on 01922 308136.

References:

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