Surging youth unemployment in Britain tests government plan to raise minimum wage

Britain's youth jobless rate hit 16.1 percent at the end of 2025. This surge forces the government to rethink its plans to phase out lower minimum wage tiers.

Britain's youth unemployment rate rose to 16.1% in the final quarter of last year, marking a 10-year high for the United Kingdom GBGB. This significant increase has pushed the national rate above the average youth unemployment figures seen across the euro zone, which includes economies such as Germany DEDE, France FRFR, and the Netherlands NLNL. The rise has brought immediate scrutiny to the UK government (centre-left) and its ongoing labour-market policies.
Workers cross London Bridge during the morning rush-hour with Tower Bridge seen behind, in London, Britain, December 16, 2025. REUTERS/Toby Melville/File Photo
Workers cross London Bridge during the morning rush-hour with Tower Bridge seen behind, in London, Britain, December 16, 2025. REUTERS/Toby Melville/File Photo
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