As of February 2026, the youth unemployment rate in the UK has reached a staggering 16.1%, the highest it has been in a decade, raising significant concerns about the government's economic policies. This alarming figure translates to approximately 739,000 young people aged 16 to 24 being unemployed, which is now above the EU average for the first time in recorded history. The surge in unemployment has been attributed to a combination of rising minimum wage levels and increased employer social security charges, which have collectively led to job losses among younger workers. The Daily Times reported that the government's plan to phase out lower minimum wages for young workers is now under scrutiny as these policies appear to have backfired, with critics arguing that the Labour government is using the unemployment crisis as justification for abandoning its pledge to equalize pay for young workers. Rachel Reeves, a key figure in the government, stated, "We want to get the balance right," but this has been met with skepticism given the rising joblessness among youth (Geo Business).