The challenge isn't just about creating more jobs – it's about ensuring the jobs available support young people's health and long-term prospects.
Our analysis of five years of labour market data reveals a troubling pattern. The sectors that employ the highest concentrations of young workers, retail, hospitality, and health and social care, are the same sectors driving the highest rates of workers moving into long-term sickness and economic inactivity.
Nearly half of all young workers are concentrated in just three sectors: wholesale and retail (23%), accommodation and food services (11%), and health and social work (12%). These aren’t just entry-level jobs. They’re jobs characterised by insecure hours, unpredictable schedules, and working conditions that can create or worsen health problems, both physical and mental. Research has shown that young adults on zero-hours contracts are at higher risk of poor mental health than those in stable employment.
The numbers are telling. Accommodation and food services has the highest rate of workers becoming economically inactive due to ill-health of any sector. 17 per thousand workers compared to an average of seven across all industries. Meanwhile, elementary occupations, caring roles, and sales positions – where young people are heavily over-represented – account for the largest volumes of people falling out of work due to sickness.
Research challenges that concept head-on, pointing instead to economic precarity, insecure hours and insufficient income as key drivers of the mental health crisis among young people today. When over a quarter of 20 to 24-year-olds have insecure working arrangements, and nearly three in ten young employees report multiple negative aspects of job quality, we’re not looking at a generational problem – we’re looking at a jobs problem.
The government’s Youth Guarantee presents an opportunity to break this cycle. But only if it prioritises job quality alongside job quantity. Without improvements to working conditions in frontline sectors, we risk supporting young people into roles that don’t last and don’t provide meaningful opportunity. The evidence on ‘scarring’ is clear – insecure work when you’re young doesn’t just affect you now, it follows you through your working life.
The evidence from our own programmes shows what’s possible. When employers give shift workers more choice, input and control over their working patterns, sickness absence and staff turnover fall significantly while wellbeing and work-life balance improve. But many employers need support to make these changes, facing barriers from procurement models to operational constraints to cultural resistance.
The path forward requires collaboration between government, employers and unions. Young people deserve more than just any job. They deserve good jobs that support their health, provide stable income and offer a genuine route to economic security. With the right policy framework and sector-level agreements, we can make this happen.
Published April 2026
