Reducing youth unemployment and inactivity – including addressing the so-called NEETs (young people not in employment, education or training) phenomenon – is an important objective for the European Union.
The European Pillar of Social Rights Action Plan includes an objective to decrease the rate of NEETs from 12.6% in 2019 to 9% by 2030 by improving their employment prospects.
The EU supports Member States in reaching this objective. The aim is to help young people live a meaningful life, as well as to develop their potential to shape the future of the EU and propel the digital and green transitions forward.
Why is supporting youth employment important?
Finding employment is very important for all young people. Having a job allows young people to have an income and lead an independent life.
On the other hand, unemployment early in one’s life can have negative impact for the whole lifetime for an individual, and it also has a cost at societal level.
This is why it is important to support youth employment and fight unemployment.
Youth unemployment level is sensitive to economic trends, as shown by the fluctuations seen in the last years – from 16.0% in 2008, prior to the economic crisis, to a peak of 24.4% in 2013.
In January 2024, EU youth unemployment rate (15-29 year-olds) was 14.9%, exactly at the same level as before the start of the COVID-19 pandemic, during which it raised temporarily.
When it comes to young people’s labour market situation, the following trends can be observed:
- In the last decades, youth unemployment rate has consistently remained around twice as high as the general unemployment rate (15-74 year-olds)
- a stable labour market integration is taking longer than before, with many job-to-job transitions and spells of precarious work
- vulnerable groups, such as youth from minority ethnic backgrounds or young people with disabilities, continue to be disadvantaged
- youth inactivity remains stable/high, and is not decreasing much when youth unemployment decreases.
Key actions to support youth employment
The Youth Guarantee, created in 2013 and reinforced in 2020, is the EU’s reference policy framework to fight youth unemployment and inactivity.
This framework helps 15-29 year-olds to receive an offer of employment, education, apprenticeship or traineeship within four months. Since its creation in 2013, it has helped around 50 million young people.
In 2020, to mitigate the negative impact of the COVID-19 pandemic for young people, the Commission adopted the Youth Employment Support communication. The Youth Employment Support is a package built around four strands that together provide a bridge to jobs for the next generation:
The Commission has also launched ALMA, an active inclusion initiative for the most disadvantaged young people, which includes the opportunity to gain work experience in another EU Member State.
It supports young NEETs, and aims to integrate them into society through access to work or training.
Since 2014, the Council Recommendation on a Quality Framework for Traineeships has been the reference framework to promote quality traineeships in the EU.
Following an in-depth evaluation of this Framework, on 20 March 2024, the Commission proposed an initiative to improve working conditions of trainees and ensure that regular employment cannot be disguised as traineeships.
In addition, the new Traineeships initiative addresses issues of quality, including fair pay and access to adequate social protection, and aims at improving traineeships’ inclusiveness in the EU Member States.
EU financial support
The European Commission urges Member States to step up investment in youth employment. Significant funding is available under the long-term EU budget and NextGenerationEU. The aim is to support youth employment with at least €22 billion in the period 2021-2027.
The European Social Fund Plus (ESF+), with a total budget of €142 billion for the period 2021-2027, is a key EU financial resource to support the implementation of the Youth Guarantee and fund projects and reforms supporting the integration of young people into the labour market.
- All Member States had to invest an appropriate amount of their ESF+ resources in targeted actions and structural reforms supporting young people’s entry into the labour market. Member States with a NEET rate (young people aged 15-29) above the EU average had to dedicate at least 12.5% of their ESF+ allocations to youth employment, education and training measures.
It is estimated that further EUR 6.1 billion will be invested in youth employment across nine Member States under the Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU).
Furthermore, it is estimated that the Just Transition Fund will support youth employment in the EU with a further EUR 150 million in 2021-2027.
Policy guidance
The EU provides policy support and mutual learning activities to help Member States put in place the right infrastructure and measures for the reinforced Youth Guarantee.
The network of national Youth Guarantee Coordinators ensures there is a direct link between the Commission and authorities managing the Youth Guarantee in each Member State. The Youth Guarantee Coordinators meet regularly to discuss policy developments.
Mutual learning activities enable Member States to exchange knowledge and learn from each other. The Commission has developed a Youth Guarantee knowledge centre to encourage the sharing of knowledge and experience.
Public Employment Services (PES) play a key role in the implementation of the reinforced Youth Guarantee. The European Network of Public Employment Services contributes to building PES capacities to provide tailored services to young people.
Monitoring progress across Member States
The Commission follows the development and policy initiatives in Member States via: