Smaller cities and towns across England have higher rates of young people not in employment, education or training than the nine largest cities, analysis shows.

The Centre for Cities, an independent thinktank dedicated to improving the economies of the UK, used 2021 census data to work out the rates across 41 cities and towns in England.

Of those places, 10 of the smallest cities and towns had higher rates of 16- to 24-year-olds out of employment and education – an average of 15.7% of their youth population, compared with an average of 13.9% across the nine largest cities.

It comes amid a national debate over chronic youth unemployment in the UK, with the latest ONS data showing just under 1 million young people are not in employment, training or education (Neet).

An interim report published by the former Labour cabinet minister Alan Milburn in May found that the UK was “at risk of a lost generation”, with young adults facing a “perfect storm” of challenges. His final report is expected soon after the budget on 28 October.

The Centre for Cities analysis shows London (117,095) and Birmingham (44,995) have the highest number of Neets in absolute terms, representing rates of 13.1% and 15.9% respectively. The average Neet rate across England is 12.6%.

In Blackpool, 2,660 of young people are not in education, employment or training, a rate of 21.2%. In Slough, 2,170 young people are Neet (14.1%). The Shropshire town of Telford has 2,780 Neets (15.1%).

Rob Johnson, a senior analyst at the Centre for Cities, said the higher rates of Neets in smaller towns and cities were often a reflection of their general economic performance. In particular, he said such areas could be affected by their proximity to larger cities, but the figures could also be a reflection of the weakness of bigger city economies in the north and Midlands.

“A big root cause of higher rates of Neets in these places is because we know these are cities that have weaker economies,” he said. “The big headline [is] of 1 million Neets across the country but it’s actually more important to understand where those people are. The scale is important, but you just need to know the extent of the variation across the country.”

Johnson said the picture was mixed across smaller cities and towns. “Somewhere like Slough, which is actually quite a productive economy, does have a relatively high rate of Neets. There’s an issue there about connecting those people to the local economy.”

For some in Telford, 30 miles north of Birmingham, the answer to the UK’s chronic crisis of youth unemployment may lie in its local shopping centre.

The Skills Shop, a new youth employment hub opened by Telford College in partnership with the Department for Work and Pensions, aims to connect young people with education, local employers and mentors to tackle the high Neet rates in the region.

Sarah Davies, the executive director of employer engagement and partnerships at Telford College, said there were multiple drivers for the Neets crisis, including the Covid-19 pandemic, mental health disorders and changes in the job market, and there was no “one size fits all” solution.

“It’s a national concern because young people are our future. If you’re out of work, you’re more likely to stay out of work,” she said. “If you ask any young person, they’d rather be working than sat at home. Nobody wants to sit at home on TikTok all day.”

One of those benefiting from courses at the college is George Bate, 21, who is learning to become a HGV driver after graduating from university with a degree in games design. He said he had been unable to pursue a career in gaming due to a lack of opportunities and so embarked on the HGV course after he was signposted by the jobcentre.

“I’d applied to most of the stuff around the area and just didn’t get a response, so that was the disheartening part. I couldn’t find anywhere that was willing to take me,” he said. “A lot of the time, it’s not even a person who reviews any of your [applications].”

When asked about narratives surrounding young people being “lazy”, Bate said there was a lack of employment opportunities as well as an absence of career progression. “It makes it so much more stressful to find a career when you know that some of them don’t have the correct amount of upward mobility,” he said.

Charlie Pryce, 19, is also taking the HGV course and said he had applied for other jobs but faced several barriers to further training and employment.

“People our age, we’ve got a long life ahead of us and we actually want to do work. We might not start off the best but I think we can grow into the role,” he said. “It’s not nice sitting around not doing anything. It’s nice to get out there and do stuff and feel like you’re actually providing something and just working hard.”

George Hounsell, the CEO of 4 All Foundation, a charity working across Shropshire, Telford and Wrekin, said many of the young people he had worked with cited issues such as the lack of opportunities and barriers to transport. “We have lots of families not being able to afford to drive or not being able to afford public transport. That’s a big problem,” he said.