A new report from The Open University reveals the scale of Northern Ireland’s NEET challenge – and the opportunity for local employers to act:
- 55% of Northern Ireland employers are experiencing a skills shortage – and nearly half expect it to get worse (45%)
- 39% of employers in Northern Ireland have hired fewer staff in the past year and one in five have hired fewer entry level roles
- 59% of Northern Ireland employers say young people are not ready for work, yet four in five say they are willing to train young people entering the workforce
- Only one in four Northern Ireland employers have a specific recruitment, retention or training initiative for young people – and just 7% target NEETs directly
- 42% of Northern Ireland employers who have cut early-career recruitment link the decline to the growing use of AI in the workplace.
The Open University’s Business Barometer report has laid bare the scale of the skills challenge facing Northern Ireland’s employers – and the significant, largely untapped opportunity that exists to address it by engaging with young people not in education, employment or training (NEETs).
The Business Barometer 2026: Harnessing Young Talent Pipelines in a Digital World report – launched today at a business breakfast in Belfast hosted by The Open University in partnership with NI Chamber – is based on a survey of 1,500 UK business leaders and 1,000 young people aged 16–24 who are classified as NEET.
The report finds that 39% of Northern Ireland employers have hired fewer staff in the past year, with one in five having specifically reduced entry-level recruitment.
Northern Ireland is not immune to the impact of Artificial Intelligence (AI). Across the UK and Northern Ireland, 42% of employers who have cut early-career hiring attribute this directly to AI automating more entry-level tasks.
This is already being felt by young people: more than two in five NEETs across the UK agree that AI is threatening their job prospects, with many significantly more wary than excited about what it means for their careers.
Despite the appetite to recruit, a significant mismatch persists. 59% of Northern Ireland employers say 16-24-year-olds are not ready for work – yet four in five say they are willing to train young people entering the workforce.
This willingness is not translating into action, however. Only one in four Northern Ireland employers have a specific recruitment, retention or training initiative for young people in place, and just 7% have initiatives targeted at NEETs.
Given the scale of the opportunity, this is a striking gap: across the UK, only 6% of NEETs expect to remain out of education, employment or training long-term, and 78% say they would be more likely to stay with an employer who offers training, support and development.
The broader operating environment is providing further challenges for local businesses. The majority (84%) of Northern Ireland employers say economic uncertainty has made recruitment or training more difficult over the past 12 months, and 66% have struggled with staff retention.
These pressures make a strong case for proactive engagement with NEETs. Young people who feel valued and supported are more likely to stay – offering employers an opportunity to directly address the skills deficit.
The Open University’s Business Barometer has charted the UK skills landscape for nearly a decade, since it was first launched in 2017.
Commenting on the findings, Michael Bower, Director of The Open University in Ireland, said: “The Business Barometer report gives us a healthy temperature check on the challenges and opportunities facing businesses in Northern Ireland. This year’s report is a timely reminder that good intentions alone will not close the skills gap.
“Despite rising unemployment, skills shortages remain a stubborn problem, and too many young people remain locked out of the workforce. These are the digital experts, nurses and engineers of the future, and we must work together to build the flexible, accessible pathways they need to realise that potential.
“We know young people want to work – the data is clear on that. The Open University is committed to working with employers and partners across Northern Ireland to build the skills, confidence and opportunities our young people deserve, and that Northern Ireland businesses need to bridge the skills gap and grow with confidence.”
Phil Murray, People and Skills Lead for NI Chamber said: “Skills shortages remain one of the most pressing issues facing Northern Ireland businesses today. Recruitment, training and retention are primary focuses as employers seek to plug the skills gap, whilst navigating the increasing cost of doing business. This report underlines both the scale of the challenge and the genuine opportunity that harnessing the young talent pipelines presents. NI Chamber looks forward to continuing to work with employers and partners like The Open University to help businesses take practical steps forward.”
