Labour’s work tsar warns Britain’s youth becoming ‘bedroom generation’ amid looming ‘economic catastrophe'

The interim report, commissioned by Sir Keir Starmer and due to be published next week, reportedly identifies social media-fuelled anxiety as a key factor behind rising economic inactivity among young Britons.

Around 946,000 people aged between 16 and 24 are currently classed as Neets - not in education, employment or training.

"We're at a risk of just writing a whole generation off," Mr Milburn told The Times.

The review warns that a "rising tide of mental ill-health, anxiety, depression, neurodiversity" is driving the crisis.

Mr Milburn described many young people as part of "a bedroom generation" permanently plugged into phones and social media.

He said: "They are not snowflakes. People say it's a soft generation. My view unequivocally is that it isn't. It is an anxious generation."

Focus groups conducted during the review revealed troubling patterns among children and teenagers.

In one group of 12 and 13-year-olds, every participant reportedly said they stayed awake scrolling on their phones until between midnight and 3am.

The report argues smartphones have fundamentally changed how young people communicate, socialise and cope with stress -damaging sleep, concentration and readiness for work.

Office for National Statistics data shows 12.8 per cent of all 16 to 24-year-olds were classed as Neet between October and December 2025.

The review also warns Britain’s welfare system was "built for a different era and must change now if we are to avoid a generational, societal and economic catastrophe".

Mr Milburn said: "Welfare reform is not an optional extra, it's a necessity."

He argued the current system was "trapping people in worklessness rather than enabling them into work".

More than half of all Neets have never had a job, while one in four are signed off due to long-term sickness or disability.

Among that group, 43 per cent cite mental health as their primary issue - up sharply from 24 per cent in 2011.

Meanwhile, the proportion blaming physical health problems has fallen from 74 per cent to 32 per cent over the past 15 years.

The report concludes employers will increasingly need to provide "a high level of pastoral care for this cohort of young people living with mental distress".

Mr Milburn also suggested the growing Neet population could help tackle skills shortages if employers adapt.

Referring to Amazon’s employment schemes for autistic workers, he said: "They love those workers because they're reliable and turn up on time.

"Just because you have a diagnosis it doesn't mean you can't get a job."

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