The UK could unlock major economic gains by reducing the number of young women who are not in education, employment, or training (NEET).
Latest analysis from PwC’s Women in Work Index shows that bringing female NEET rates in line with Germany could add £5 billion to the UK’s GDP, while matching the Netherlands could deliver up to £11 billion. Even returning to the UK’s 2021 low would generate a further £3 billion.
The report examines why nearly 946,000 16‑to 24‑year‑olds – almost one in eight – are now NEET, up from 11.9% to 13.6% since the pandemic.
In the UK, low GCSE attainment significantly increases NEET risk for young women, and the impact is more pronounced than it is for young men (24.5% vs 19.4%). This reflects deep‑rooted gendered patterns in the labour market: boys with low qualifications are more likely to move into better‑paid, male‑dominated sectors, such as construction that have accessible routes into work, while girls often face far fewer comparable opportunities.
When low attainment coincides with a health condition, young women become almost four times more likely to be NEET than the average young woman, (48% compared with 12%). Taken together, these findings highlight both the scale of the challenge and the size of the opportunity, says PwC. Intervening earlier, addressing education, health and the career pathways girls are encouraged to consider, will be critical to improving outcomes for young women and unlocking economic gains for the UK.
Carol Stubbings, UK and EMEA Managing Partner at PwC, said: “While the UK has regained its position as the highest‑ranking G7 economy for women in work, the story beneath the headline is more complex. Rising female unemployment, especially among young women, points to underlying weaknesses in our labour market at a time when AI is reshaping the economy and the skills needed.
