Youth unemployment in the United Kingdom has just crossed a symbolic threshold. For the first time since the start of European statistics in 2002, Britain’s rate has surpassed the European Union average, according to the latest data published by the Organisation for Economic Co-operation and Development (OECD).
A rate of 15.3% among 16-24 year-olds
According to figures for the third quarter of 2025, relayed by the British press, the unemployment rate for young people aged 16 to 24 in the United Kingdom stands at 15.3%, versus 15% on average in the European Union.
Three years ago, this rate was 10.2% in the United Kingdom. The increase is therefore significant over a relatively short period, reflecting a shift in the dynamics of the British labor market.
This evolution marks a historic break: since 2002, when comparable European statistics began to be compiled, the UK had never shown youth unemployment higher than the European average.
The minimum wage debate reignited
This rise occurs in the context of a gradual increase in the minimum wage, initiated under the previous Conservative government and continued by the current Labour government.
Katherine Mann, a member of the Bank of England’s Monetary Policy Committee, said in an interview that the cumulative three-year increase in the minimum wage for young people had contributed to the rise in unemployment.
According to her, “the accumulation of minimum wage increases over a three-year period for this group has led to higher unemployment rates,” acknowledging that this is “perhaps regrettable, but very real.”
The renowned American economist Katherine Mann has notably served as an adviser to former U.S. President George W. Bush, head of the OECD’s economic team, and has also worked with the U.S. Federal Reserve. She argues that the rise in labor costs has contributed to a general increase in prices in the British economy.
A “challenge” acknowledged within the Labour Party
Angela Rayner, former deputy prime minister and figure in the Labour Party, acknowledged that the rise in the minimum wage represents a “challenge” for businesses and industries.
The Labour Party had pledged to abolish what it calls “age-based wage discrimination” by ending the differentiated minimum wage system for young people that has been in place since 1999.
Historically, the aim of lower wages for young people was to encourage employers to recruit less experienced candidates, despite their limited professional tenure.
In 2024, former Chancellor of the Exchequer Jeremy Hunt had already raised the minimum wage for young people aged 21 to 22. The Labour government has continued this trajectory.
A series of successive and significant increases
In April last year, at the start of the budget year, Finance Minister Rachel Reeves raised the minimum wage for 18-20-year-olds from £8.60 ($11.71) to £10 ($13.62) per hour.
For those aged 21 and over, the minimum wage rose from £11.44 ($15.58) to £12.21 ($16.63) per hour.
Another increase is planned for next April, with the budget for the new fiscal year coming into effect:
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For 18-20-year-olds: £10.85 ($14.78) per hour.
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For 21 and over: £12.71 ($17.31) per hour.
These successive increases reflect a political will to harmonize pay and reduce age-related gaps.
Criticisms from economists
Several economists have, however, voiced reservations. Paul Johnson, former president of the Institute for Fiscal Studies, argued that these increases could make it harder for young people to access employment.
According to him, the principle of a lower minimum wage for young people rested on an economic logic: to allow businesses to hire less experienced workers rather than prioritizing older and more qualified profiles.
The question thus remains: how to reconcile fair wages with the professional integration of young people in a context of economic slowdown and cost pressures on businesses?
