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UK youth unemployment hit 15.3% by Sept. 2025, exceeding EU average, linked to steep minimum wage hikes and rising business costs.
Britain's youth unemployment rate rose to 15.3% in the three months to September 2025, surpassing the EU average for the first time since 2000, with 729,000 16- to 24-year-olds unemployed—150,000 more since Labour took office.
Bank of England policymaker Catherine Mann attributed the surge to rapid minimum wage increases, particularly the elimination of lower age-based pay rates, including a 16.3% rise to £10 per hour for 18- to 20-year-olds in April 2025.
She linked the trend to reduced hiring by businesses in sectors like retail and hospitality, which face higher costs from employer National Insurance and business rates.
Mann cautioned that while higher wages aim to improve living standards, they may discourage employers from hiring inexperienced youth, especially amid weak productivity and labor market growth.
El desempleo juvenil del Reino Unido alcanzó el 15,3% en septiembre de 2025, superando el promedio de la UE, vinculado a fuertes aumentos en el salario mínimo y al aumento de los costos empresariales.