A country's long-term prosperity rests not just on its infrastructure, institutions or investment pipelines, but on whether its young people can see a future for themselves where they live. Put simply, youth confidence is a leading indicator of economic resilience.
A recent YouGov and King's Trust survey found that 31% of young people think the biggest barrier to achieving their career goals is a lack of job opportunities in their local area – a figure that has risen by seven percentage points in just a year.
These are not abstract sentiments. They are a warning about the UK's growth strategy. When young people can't see opportunity where they live, the consequences are not only personal – they shape the trajectory of towns and cities for decades.
Why young people leave
For young people from families and communities where work has always felt insecure, aspiration in the local job market can erode early. For those who strive for more, the instinct is often to leave at the first opportunity. Of course, it is natural to move away to study or gain new experiences. But the distinction between temporary mobility and permanent loss sits at the heart of the problem. Do young people have enough reason to return to their hometown? In some places, they do. In others, they simply don't.
There is also a job visibility gap. Many young people do not recognise that modern career opportunities exist on their doorstep. The UK economy has changed rapidly over the last two decades. Businesses are no longer just accounting departments, sales teams and factory floors. There are digital roles, marketing, content creation, design, data analysis, product development and more. Those jobs exist everywhere – young people simply don't expect it.
There is a potential workforce in local communities capable of driving productivity and growth in the sectors the country relies on. If we fail to make those pathways visible and accessible, it is no surprise they assume the only option is to look elsewhere.
The cost of disconnection
At a time when the UK faces demographic ageing, labour shortages and productivity stagnation, sidelining a generation is not just socially troubling, but economically self-defeating. Everything we know about life expectancy and wellbeing points to fulfilling work as central to living longer and healthier lives. When people feel disconnected from opportunity, the consequences become deeply personal.
Reversing this requires more than rebranding high streets. Focus must shift to recalibrating perceptions of local work and income. Enabling wages to circulate locally stimulates businesses, restores confidence and rebuilds a sense of possibility. It not only strengthens the economy but gives young people a reason to stay.
From growth metrics to good growth
In our forthcoming Good Growth report, we argue that economic development must move beyond narrow output metrics and refocus on the fundamentals of people and place.
Investment in young people starts with recognising that the current skills system does not work for everyone. Not everyone follows the traditional A-level to university route, yet vocational and technical pathways are still often treated as second class. We also behave as though formal skills development ends at 21. In an economy evolving at pace, that assumption no longer holds. The role someone trains for at 21 may look very different, or not exist at all, by mid-career.
The challenge is not just access, but longevity. Lifelong learning, flexible pathways and second chances must become normal features of local economies – and be clearly visible – so young people understand they can build sustained careers close to home.
Furthermore, investment in place cannot be reduced to capital projects. Shiny buildings, new paving and transport upgrades are important, but alone, they do not create resilience. True place investment is about institutions, finance, skills and the social infrastructure that underpins confidence and participation. If community capital frays, growth will falter regardless of infrastructure spend.
What next?
Following the 2025 investigation into the causes behind the rise in the number of young people who are not in education, employment, or training (NEET), there's an opportunity for greater collaboration between local government, businesses and education providers to strengthen communication about how to progress from local schools and colleges, directly into nearby job opportunities. Vacancies exist. Let's prove it.
We must also move beyond short funding cycles and visible assets, towards systems that genuinely embed opportunity. Significant infrastructure investment has been made across the country. Let's make best use of what already exists, while ensuring it is being used fully and evenly by all.
A warning – and an opportunity
Young people are not merely worried about the national economy. They are worried about their place in it. If so many believe there are no local jobs for them, economic strategies must begin to respond to lived experience, not just GDP forecasts.
We must make it clear to young people – the future of our communities – that good growth is not investment measured somewhere else. It must be visible and accessible in the places they live.
Let us take heed of this warning sign and address it through people-first, place-based investment that reflects the needs of all. If we achieve that, the country has an opportunity to rebuild hope among its young people and restore confidence in the communities that need it most.
Nigel Wilcock is executive director for the Institute of Economic Development
