The number of people aged between 16 and 64 to have never had a paid job has increased by 50 per cent over the last 20 years, according to a new study by think tank Resolution Foundation.

It found that 3.4m people in the UK had never had a job, or 8.2 per cent of those of working age.

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In 1998, just 5.4 per cent of the same demographic had never worked.

The report said the employment rate of those aged 16 or 17 had almost halved in the past two decades. From 48.1 per cent in 1997-99 to just 25.4 per cent in 2017-19.

It indicated that two-thirds of that fall was driven by a reduced employment rate among that age group at school or college.

Laura Gardiner, research director at the Resolution Foundation, said: “More and more of us are now working, with employment hitting record highs and worklessness hitting record lows.

“But despite this, around one in 12 working-age adults have never worked a day in their lives – a 50% increase since the late 1990s.

“The rising number of people who have never had a paid job has been driven by the death of the teenage Saturday job and a wider turn away from earning while learning.

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“With young people today expected to end their working lives at a later age than previous generations, it’s understandable that they want to start their working lives at a later age too.

“But this lack of work experience can create longer-term problems, particularly if they hit other life milestones like motherhood or ill-health before their careers have got off the ground.”