The Cambridgeshire Chamber of Commerce has welcomed the publication of the interim findings of the Milburn Interim Review, which highlights the growing challenge of young people who are not in employment, education or training (NEET), and reinforces the need for stronger links between employers, education providers and skills systems.
The review comes at a time when youth employment challenges are growing nationally. Recent figures show that almost one million young people aged 16 to 24 across the UK are not in education, employment or training, equivalent to around one in eight young people. The review warns that without intervention this figure could rise further, with significant implications for both social mobility and economic growth.
In Cambridgeshire and Peterborough, employers have consistently identified recruitment and skills challenges through the Local Skills Improvement Plan (LSIP) and Quarterly Economic Survey. These challenges are being compounded by a difficult economic environment, with businesses facing rising employment costs driven by increases to Employer National Insurance Contributions and the National Living Wage, alongside concerns about the cumulative impact of measures contained within the Employment Rights Act. Together, these pressures risk reducing the capacity of some employers to recruit, train and support young people entering the workforce at a time when skills shortages remain a significant barrier to growth.
Charlotte Horobin, Chief Executive of the Cambridgeshire Chamber of Commerce, said:
“The findings of the Milburn Interim Review reflect many of the concerns that employers across our region have been raising for some time. Businesses want to recruit local talent and invest in the next generation, but too many young people are struggling to access clear pathways into employment, education and training.
“The review rightly highlights the importance of local solutions. Here in Cambridgeshire and Peterborough we are fortunate to have strong partnerships between employers, education providers and the Cambridgeshire and Peterborough Combined Authority as well as other stakeholders, which are already helping young people access opportunities and supporting businesses to develop their future workforce.”
Local labour market evidence reinforces many of the concerns highlighted in the Milburn Interim Review. While the region’s youth employment rate has improved to 55.2% in 2025, it remains below historic levels. At the same time, 3.9% of 16 to 17-year-olds in Cambridgeshire and Peterborough are currently not in education, employment or training, above the national average of 3.4% and the highest local rate recorded since 2016. In Peterborough, the figure has risen to 5.4%.
The region is also experiencing a long-term decline in the number of young people entering the workforce. The population of 18 to 24-year-olds is 2.6% lower than a decade ago, with some areas experiencing much steeper declines. This shrinking talent pipeline, combined with persistent educational attainment gaps in parts of the region, presents additional challenges for employers seeking to build their future workforce.
Recent Quarterly Economic Survey findings also highlight the importance of employer engagement in supporting young people into work. Just 32% of employers currently offer, or would consider offering, work experience placements, while 55% offer none, citing cost and capacity constraints. This limits opportunities for young people to gain valuable exposure to the workplace and develop the skills, and confidence employers are seeking.
Through the Local Skills Improvement Plan, businesses are working directly with colleges, universities, training providers and strategic partners, alongside the Cambridgeshire and Peterborough Combined Authority, to ensure that skills provision aligns with labour market demand.
Alongside the LSIP, the Combined Authority has a range of initiatives designed to support young people into employment and training. These include paid internship programmes, apprenticeship support and funding, the Connect to Work programme and the successful Youth Guarantee Trailblazer, all of which help remove barriers to employment while creating pathways into sectors experiencing skills shortages.
The Chamber believes these programmes demonstrate how coordinated local action can help address many of the challenges identified in the Milburn Review, connecting young people with meaningful opportunities while supporting economic growth.
Charlotte Horobin added:
“The Local Skills Improvement Plan provides a mechanism for employers to shape the skills system, but its success depends on strong partnerships. The Combined Authority has shown real commitment to supporting young people and employers through targeted programmes that create opportunities and build confidence.
“As the Milburn Interim Review develops its recommendations, we hope to see continued support for local areas to bring together business, education and public sector partners. By working collaboratively, we can ensure more young people are able to access rewarding careers while helping employers address critical skills shortages.”
The Cambridgeshire Chamber of Commerce will continue to work with employers, the Cambridgeshire and Peterborough Combined Authority, education providers and other stakeholders to ensure the region’s skills system supports both young people and the needs of a growing economy.