UK faces 'economic catastrophe' unless it adapts to young people 'rewired by smartphones'

The UK is facing an "economic catastrophe" unless it adapts to younger generations who have grown up in a digital world, a former minister has warned.

Alan Milburn is due to publish an interim report next week that examines why almost one million 16 to 24-year-olds are not in employment, education or training (NEET).

It will conclude that a "rising tide of mental ill health, anxiety, depression and neurodiversity" is a big factor in this economic inactivity.

Speaking to The Times, Mr Milburn rejected claims that young people are "snowflakes" - and said the country is at risk "of just writing a whole generation off".

According to the report, the rise of smartphones and social media has led to a "bedroom generation" that suffers from poorer sleep and lower levels of concentration.

"Every one of a group of ten 12 and 13-year-olds told us they went to bed between midnight and 3am because they were scrolling on their phone," it will warn.

The report will describe young people as different - and not worse, lazier or less intelligent than their peers in other age groups.

"They have grown up in a digital world that has rewired how they communicate, form relationships and manage stress," it will say. "They have fewer experiences of workplaces, and they present with higher levels of anxiety and depression."

COVID is also thought to have played a factor, as many 16 to 24-year-olds would have been in high school or college during lockdown closures.

Mr Milburn believes the UK's one million NEETs could plug labour shortages in the British economy, as long as employers are willing to make accommodations for them.

Speaking to the newspaper, he went on to warn that welfare reforms will be a "necessity" to help younger generations enter the world of work.

Figures from the Office for National Statistics suggest youth unemployment reached 16.2% in the three months to March - the highest level in 11 years.

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A report published earlier this week also identified social media as a driver of a so-called quitting culture among this age group.

The research, based on conversations with 400 young people, found some enjoyed "the dopamine hit of a new job but then get bored very quickly and want to move on".

Authors also warned that many students don't believe that school adequately prepares them for life or work - with secondary years dominated by exam pressure, and a focus on university education rather than alternative routes.

(c) Sky News 2026: UK faces 'economic catastrophe' unless it adapts to young people 'rewired by smartphones'