Britain is facing what a government-backed review has described as an “economic catastrophe”, as rising numbers of young people become trapped in long-term worklessness after growing up immersed in smartphones and social media.
The inquiry, led by former health secretary Alan Milburn, warns that employers and the state must adapt to an “anxious generation” by offering more flexible workplaces and stronger mental health support. Commissioned by Prime Minister Keir Starmer, the review examines why almost one million people aged 16 to 24 are not in education, employment or training (Neets).
Milburn’s interim findings point to a sharp rise in anxiety, depression and neurodiversity as key drivers behind growing economic inactivity among young adults. Rejecting claims that young people are simply being over-sensitive, he argued instead that many have been shaped by constant exposure to digital technology and social media.
“The system is trapping people in worklessness rather than enabling them into work,” Milburn said, warning that Britain risks “writing off a whole generation”.
The report argues that the welfare state was designed for a different era and now risks leaving many young people permanently dependent on benefits. Researchers warn this could damage not only individual life chances but also Britain’s long-term economic growth.
More than half of those classified as Neets have never worked, while roughly a quarter are signed off due to long-term sickness or disability. Among this group, 43 per cent now identify mental health as their main challenge, almost double the figure recorded in 2011. Physical health problems, by contrast, have declined significantly over the past 15 years.
The inquiry also highlights the growing influence of smartphones and social media on young people’s wellbeing and employability. Researchers found some young adults spending years isolated at home and online, gradually losing confidence and motivation. Focus groups revealed widespread sleep disruption linked to excessive phone use, with some children reportedly staying awake scrolling on their devices until the early hours of the morning.
“This is a bedroom generation,” Milburn said. “They are on all the time, they’re never off. Social media is affecting sleep patterns, concentration levels and ultimately their ability to work.”
The report stresses that young people today are “different, not worse”, having grown up in a digital world that has fundamentally altered how they communicate and cope with stress. It also argues that diagnoses such as anxiety, depression, ADHD or autism should not automatically exclude people from employment.
Researchers said the problem was worsened by the Covid-19 pandemic, which disrupted education and social development during crucial formative years.
