The logistics sector has backed calls for a stronger focus on apprenticeships and technical skills reform following the publication of Alan Milburn’s interim review into the growing number of young people not in education, employment or training (NEET).
The government-commissioned review, published this week, warned that the number of 16 to 24-year-olds classed as NEET could rise from around one million today to 1.25 million within five years without urgent intervention.
The report painted a stark picture of declining entry-level opportunities, falling apprenticeship participation among younger workers and a labour market increasingly difficult for inexperienced candidates to enter.
Among its key findings, the review highlighted a sharp decline in apprenticeship starts for under-19s over the past decade, while levy funding has increasingly been used for higher-level apprenticeships aimed at older existing employees rather than new entrants to the workforce.
The report also found that nearly six in 10 young people currently classed as NEET have never had a job, compared with four in 10 in 2005, while spending on welfare support for under-25s now vastly outweighs investment in helping young people into employment.
In an interview on the report’s finding Milburn said it was “bullshit” to suggest the crisis in entry-level jobs had been created by the government raising employers’ national insurance, increasing the minimum wage and the introduction of extra working rights.
“This didn’t start two years ago. It’s not the cause of the crisis,” he said, pointing to the 1.6m first-rung jobs that have vanished in the past 20 years and the 35% fall in apprenticeship starts in the past decade. “This is structural, not about writing better CVs,” he added.
Responding to the findings, Logistics UK said the sector had a critical role to play in creating accessible career pathways through apprenticeships, traineeships and industry outreach initiatives.
Bethany Windsor, Logistics UK head of skills policy and Generation Logistics, said: “Today’s publication of the interim Milburn Report makes sobering reading about the prospects for the next generation, particularly the scale of the rise in young people who are NEET.
“For sectors like logistics, this is also a moment of opportunity. Apprenticeships, traineeships and initiatives such as Generation Logistics play a crucial role in opening up pathways for young people who may never have considered a career in the sector.
“They provide not just entry routes into work, but clear progression, practical skills and long-term careers in a sector that underpins the whole economy.”
Windsor added that reforms to improve technical education routes and strengthen links between employers and the skills system would be vital if more young people were to access sustainable employment.
“The focus now needs to be on ensuring that the skills system is responsive, joined up and aligned with employer need,” she said.
“Reform that strengthens technical routes, improves careers awareness, and makes it easier for employers to engage will be essential if we are to connect more young people with meaningful opportunities.
“Getting this right is not just about social mobility; it is fundamental to the long-term resilience and productivity of the UK’s logistics workforce.”
The Milburn review also warned that employers are increasingly demanding prior experience and more complex recruitment processes even for entry-level jobs, creating additional barriers for young people attempting to enter the labour market for the first time.
A second phase of the review, focusing on recommendations for reform, is expected later this year.
