Youth Outside the Labor Market: An Economic Risk for All of Europe

It is said that young people represent the most valuable capital of any country; they are the drivers of innovation, economic growth, and social change. However, when a large portion of them remains outside of work, school, or any form of training or education, it becomes a serious economic and social problem.

According to the latest data from Eurostat, the unemployment rate in Europe was 5.9 percent, while in the eurozone, unemployment was slightly higher at 6.2 percent. Despite relatively stable trends across the Union, differences among individual countries remain significant. Spain continues to record the highest unemployment rate at 10.9 percent, followed closely by Finland (9.1%), Sweden (8.5%), and Greece and Estonia at 8.3 percent each. At the other end of the scale, Malta and the Czech Republic have the lowest unemployment rates at just 2.7 percent, followed by Poland and Bulgaria at 3.3 percent each. In Croatia, this rate stands at 4 percent, according to the latest data from the DZS.

Lost Generation

Particularly concerning is the unemployment rate among young people under 25, which remains in double digits. In June, it was 14.1 percent in the eurozone, while it reached 14.7 percent at the EU level. This means that around 2.857 million young people in the EU are unemployed, of which 2.241 million are in eurozone countries.

These data show that two-thirds of European countries have still not met the European Union’s goal of reducing the share of young people who are not employed, not in education, and not in training to less than nine percent by 2030. This youth, who are neither working, studying, nor training, are referred to as NEET.  This acronym stands for ‘Not in Employment, Education, or Training.’ It was first used by researchers in the United Kingdom in the 1980s and was adopted in 2010 as an indicator of a trend highlighted by the European Commission’s Employment Committee.

Data collected by Euronews show enormous differences between countries. While young people in the north and west quickly find their way, the south and east of Europe continue to bear the burden of the ‘lost generation.’

The Goal is Clear, the Reality is Not

In 2024, 11 percent of Europeans aged 15 to 29 were NEET. The EU’s ambition is to reduce this share to below 9 percent by the end of the decade. However, so far, only 11 out of 34 European countries have met the goal, according to Eurostat data, and the differences are dramatic. In the Netherlands, only 4.9 percent of young people are outside the education and labor system, while in Romania, this share jumps to 19.4 percent. The OECD warns in its report on Romania that poor quality of education is a key cause, and without a solid foundation, young people struggle to find their way into the labor market.

When candidate countries for EU membership, the United Kingdom, and EFTA states are taken into account, the picture becomes even darker. Turkey records the highest rate, with 25.9 percent of young people being NEET, meaning more than one in four. Immediately behind it is Bosnia and Herzegovina with 22.2 percent. Both countries are negotiating membership in the Union, and such data clearly show that they have a long way to go.

The North is Successful, the South is Lagging

Geographical patterns are also quite clear. Southern and southeastern Europe are far weaker performers in this story, while the north and west stand out as positive examples. Besides Turkey and Bosnia and Herzegovina, above the EU average are Romania (19.4%), Italy (15.2%), Serbia (14.9%), Lithuania (14.7%), Greece (14.2%), and Bulgaria (12.7%). Croatia is very close with 10.6 percent.

Even among the largest economies in the Union, differences are visible. Italy leads with 15.2 percent, while France (12.5%), the United Kingdom (12.1%), and Spain (12%) also have rates above the average. Germany, on the other hand, is a positive exception, with only 8.5 percent of young people outside of work or education.

Best Examples

The most successful are the Netherlands (4.9%), Iceland (5.0%), Sweden (6.3%), Norway (6.8%), Malta (7.2%), Ireland, and Slovenia (7.6%). These countries offer clear models: systematic linking of education and the labor market, dual educational programs, and strong support for young people entering the labor market.

The contrast between the Netherlands and Turkey is striking. The OECD highlights key weaknesses in its report on Turkey, including the gap between the skills employers seek and those students acquire at universities, as well as the low share of STEM graduates. This results in high unemployment even among the highly educated.

On average in the EU, 10 percent of men and 12.1 percent of women fall into the NEET category. A difference of 2.1 percentage points may not sound dramatic, but it hides deep structural problems. Turkey records the largest difference, with 36.4 percent of young women being NEET, compared to 15.8 percent of men, meaning almost double. In Romania, it is 25.2 percent of women and 14 percent of men, while in the Czech Republic, the difference is quite large in favor of men (13.3% of women compared to 3.9% of men).

However, there are also contrary examples. In five countries—Sweden, Finland, Norway, Estonia, and Belgium—men are more likely to end up as NEET than women. The Nordic countries lead in this regard, raising questions about different patterns of social policies and gender roles.

Unemployed or Inactive?

Data also reveal another important dimension: young people who are NEET are not necessarily unemployed. There are two main reasons: either they are actively seeking work, or they are outside the labor force. In most countries, the latter case prevails. At the EU level, 4.2 percent of young people are unemployed, while 6.9 percent simply do not participate in the labor market. Turkey again stands out as a leader in negative data, with official youth unemployment at only 5.9 percent, but as much as 20 percent of young people are outside the labor force. A similar pattern is observed in Romania (14% outside the labor force, 5.4% unemployed). Italy, Lithuania, and Bulgaria also have more than 10 percent of young people completely outside the market.

The position of women presents a particular problem. They tend to drop out of the labor force more frequently. In the EU, 8.5 percent of women and 5.3 percent of men find themselves in this situation. In Turkey, the difference is extreme, with almost one in three young women (30.5%) being outside the labor market. Romania follows with 21 percent. The reasons have been clearly identified by a study conducted by Turkish scientists in 2023, where gender and marital status significantly increase the risk of dropping out of the labor market. Traditional roles, household chores, and care for children and the elderly push young women out of the workforce, even if they are educated.

These data show a high rate of the NEET population in Europe, which is certainly not good for the old continent. It is not just a matter of social challenges but also of the economy’s continuity. Europe cannot afford a ‘lost’ or ‘missed’ generation, as this means lost capital, both human and economic. The north has found solutions, and the south must follow northern paths while there is still time.