With approximately one million young people not in education, employment or training (NEET), the St Martin’s Group’s new report, From Appetite to Opportunity: What Employers Need to Recruit More Young People, comes at a crucial time. Launched following the Labour Party Conference and ahead of the upcoming Milburn Review, the new report’s findings are generally encouraging and highlights several recommendations on how employers and government can improve youth employment figures.
The research was conducted by the Learning and Work Institute, who surveyed 1039 HR decision makers through an online YouGov survey between 16 July and 4 August 2026, and was then reviewed by members of The St Martin’s Group Employer Insights Panel.
Employers favour tried and tested employment routes, such as direct recruitment, internships, and apprenticeships
Findings suggest that employers need to understand more about the Youth Guarantee, with around one in ten businesses expecting this to form one of their top three methods of recruiting young people – however, some employers may use initiatives that are part of it without recognising the Youth Guarantee name. Generally, employers favour direct recruitment, internships, placements and work experience, or apprenticeships. However, uptake of the Youth Guarantee is higher amongst employers who expect to recruit more young people.
Business size plays a part in preferred recruitment route, with large businesses more likely to use internships, work placements, work experience, graduate programmes and apprenticeships to hire. By contrast, almost half of small businesses expect to recruit young people directly rather than through work-based routes. In the context of the new apprenticeship funding for non-levy payers, these findings suggest that increasing financial support may not be enough on its own if smaller employers are less likely to see apprenticeships as a recruitment route.
Geographical location also impacts preferred recruitment routes, with employers in Greater London more likely to use graduate schemes compared with employers in the West Midlands and the North West.
Employers want better pathways to get young people into work
Employers recognise young people’s potential, however one third say young applicants lack the skills, qualifications or experience required and almost a quarter say they need greater support to adjust to the workplace. Panel comments suggest that this reflects limited workplace exposure, confidence and an understanding of employer expectations. Other barriers to employing young people include limited staff time to supervise or support young people, training costs and wider financial pressures. Only 14% of employers say they do not have significant barriers to employing young people. A recent Department for Work and Pensions-commissioned survey posted similar findings.
The findings therefore point to action needed on both sides: helping young people gain workplace exposure and supporting employers to supervise and support young people to develop skills and work readiness.
Panel comments highlighted that structured work experience, internships, apprenticeships and early engagement with employers are highly effective in addressing gaps in skills and confidence.
Barriers to employing young people vary depending on business size, location and sector
Whilst businesses of all sizes cite young people lacking the skills, qualifications and experience as their top barrier to recruiting young people, the prevalence of other barriers vary depending on the size and location of the organisation.
Large businesses are significantly more likely to cite AI and technology as reducing the number of roles for young people. Employers in IT and telecoms and finance and accounting sectors are also more likely to cite AI as a concern. Similarly, employers in Greater London are significantly more likely to raise AI as a reason for not recruiting young people. This may reflect an increase in the concentration of industries exposed to AI-driven changes in employment.
Small and medium businesses are far more likely to cite a lack of entry-level roles as their main barrier to not hiring young people.
Taking the research to policymakers
The report provided the basis for several discussions at the recent Labour Party Conference.
The St Martin’s Group “In Conversation” event brought together MPs and representatives from sector bodies to discuss how government and employers can work together to create opportunities for young people. As explored in the report, speakers at the event discussed barriers to employing young people, support needed to boost this, the role employers can play in widening access to skills, training and employment, particularly for young people who are NEET, and what businesses need from government to invest in early talent. Speakers at the event included Ian Dale, LBC broadcaster and political journalist, Emily Rock, Strategic Advisor and Engagement Director of The St Martin’s Group, Lauren Edwards MP, Chair of the Skills, Careers and Employment APPG, Damien Egan MP, Member of the Work and Pensions Select Committee, Craig Beaumont OBE, Executive Director of the Federation of Small Businesses, and Jenny Hall, Chief Corporate Affairs Officer of Royal Mail and IDS.
The St Martin’s Group also brought together ten apprentices from across the country for another of their Conference events. “The Apprentice Voice: What Young Talent Needs from Politics” put apprentices at the heart of the debate surrounding opportunity and transitions into work. Apprentices spoke with Minister for Skills Jacqui Smith and senior MP Toby Perkins, providing invaluable insight into the experiences of young people entering the workforce, developing skills and building careers in today’s economy. Building on the report, the event explored what young people need from government, employers and the skills system to thrive over the next decade.
As the government continues to investigate the NEET crisis and how to boost youth employment, the report provides a valuable evidence base to inform future developments and interventions. The upcoming Milburn review, expected to be published later in the year, will offer further recommendations to policymakers on how to tackle the growing number of NEETs in the UK.
From Appetite to Opportunity: What Employers Need to Recruit More Young People is the first in a series of reports which The St Martin’s Group will publish this year. Further reports will similarly be supported by the Learning and Work Institute and will focus on skills and employment, with the aim of providing up-to-date employer insight and evidence to contribute to live policy discussions. For employers interested in joining our Employer Insights Panel and contributing to further St Martin’s Group reports, please contact [email protected].
The St Martin’s Group would like to thank all those who contributed to the research and attended their Labour Party Conference events.
You can read the full report here.