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The number of young people in the UK not working or in education has risen closer to a million, figures show, as a government adviser warned that for the first time in a century parents do not think their children will have a better life than them.

The Office for National Statistics (ONS) said the number of people aged 16 to 24 who were not in education, employment or training (Neet) rose to 957,000 in the final three months of last year, equating to 12.8% of this age group.

The figure was up from 946,000 in July to September, but down by 14,000 from a year earlier. The number of young women classed as Neet rose by 13,000 while the number of young men fell by 2,000. In total, 510,000 young men and 448,000 young women were classed as Neets.

There are increasing concerns that young people in the UK are faring badly in the jobs market, with unemployment among 16- to 24-year-olds above the EU average. The Neet data shows that the number of young people who are inactive – meaning they are not looking for a job and are also not in education or training – fell by 34,000 in the quarter but remained high at 547,000.

The former health secretary Alan Milburn is chairing a government review into the causes of youth unemployment and inactivity and is due to report this summer.

Speaking to Times Radio before the latest Neet figures were released, he said there was a growing fear in society that young people now had worse prospects than their predecessors in terms of employment and home ownership, while also dealing with issues around the prevalence of social media and artificial intelligence.

“There’s a broader fear that parents and grandparents have, that their kids … are not going to do as well as we’ve done. That’s the first time that’s really happened in a century,” Milburn said. “I think people feel that the social contract that we’ve had in society – that each generation would do better than the last – is now being broken.”

Milburn said employers and the government had to find ways to address the fact that many young people were economically inactive because of mental health conditions. “Even if someone has anxiety and depression, what we shouldn’t be saying to people is that automatically means that you can’t work,” he said.

The ONS said the increase in the Neet figure was due to rising unemployment rather than economic inactivity, with the number of 16- to 24-year-olds looking for a job rising to 411,000. This was up 45,000 from July to September 2025 and up 19,000 from October to December 2024.

Jonathan Townsend, the chief executive of the King’s Trust, a charity that helps young people find employment, said the figures signalled “a national crisis”. He said: “Behind every number is a young person full of potential whose confidence is being eroded and whose belief in their own prospects will begin to fade.”