The latest labour market figures, published by the Office for National Statistics on 20 October 2026, show a job market that has cooled. Behind the headline numbers is a growing challenge for young people, and health is a big part of it.
The latest figures
- The unemployment rate was 4.7% in June to August 2026, around 1.71 million people.
- 9.09 million people aged 16 to 64 were economically inactive, a rate of 20.9%.
- Vacancies fell to 691,000 in July to September 2026, down 37,000 on the year.
- The number of payrolled employees in September 2026 (a provisional estimate) was 66,000 lower than a year earlier.
A million young people not earning or learning
Around one million young people aged 16 to 24 are not in education, employment or training. Alan Milburn’s interim review of young people and work, published in May 2026, warned that without action this could rise from one in eight young people to one in six within five years, around 1.25 million. The Chancellor said in the Budget that the final report will be published next month.
Why health is part of the story
Health is not the only reason young people are out of work, but it is a growing one. The government’s Keep Britain Working update found that the number of 16 to 34 year olds reporting a work-limiting health condition rose by 1.2 million between 2015 and 2024, with mental health accounting for 530,000 of that rise.
Time matters too. Once someone is economically inactive for health reasons, their chance of moving into work within a year is just 3.8%, compared with 47% for someone who is unemployed. The longer people are out, the harder it is to come back.
What helps
- Early support. Helping people with their health before it pushes them out of work, or before a short spell out becomes a long one.
- Joined-up help. Employment support and health support working together, which youth and mental health charities have called for.
- Employers who open the door. Apprenticeships, good onboarding and support in the first months of a job make a real difference.
- Connection. Being out of work can be isolating, and isolation makes the way back harder.
Where VYVE fits
VYVE does not create jobs or run employment programmes, and the biggest levers here sit with government, employers, colleges and employment support services.
Our part is health. For people in work, VYVE helps them stay well, which helps them stay in work. For people who are not, our Give Back programme turns members’ activity into free months of VYVE for people referred by our charity partners, with support for their mind, body and connections at no cost to them. If you work with young people and would like to explore that, talk to us about becoming a charity partner.
Sources: ONS, Employment in the UK: October 2026; FE News, ONS labour market data October 2026; FE News, Milburn interim review, May 2026; GOV.UK, Budget 2026 speech; GOV.UK, Keep Britain Working: a national growth opportunity, September 2026.