In most OECD countries, the share of 18-24 year-olds who are neither employed nor in formal education or training (NEET) has decreased between 2016 and 2023. Costa Rica and Lithuania are exceptions, having experienced a rise above 3 percentage points in the share over this period.
On average across OECD countries, 70% of 18-24 year-old NEET women compared to 56% of 18-24 year-old NEET men are inactive. In Iceland, Mexico and Slovenia, more than 90% of NEET women are inactive. The difference by gender exceeds 30 percentage points in the Slovak Republic and Slovenia.
Among 15-29 year-olds, the share of foreign-born adults who are NEET varies widely across OECD countries, ranging from 8.0% in Australia to 45.6% in Costa Rica. In almost all countries with available data, more foreign-born 15-29 year-olds are NEET compared to their native-born peers.
Education at a Glance 2024
How easily young people transition from education to the job market depends on several factors, including the duration and type of their education and the skills they acquired, market conditions, and the overall economy. Having the right skills remains crucial for successfully entering the job market, especially during economically challenging times. This is even more important for individuals who have newly immigrated to a country. This process is also influenced by individual traits. Despite higher education levels, women historically face lower employment rates (Petrongolo, 2019[1]). Bridging the gender gap in employment remains a work in progress, demanding focused attention.
Attention is particularly warranted for NEET youth. Early joblessness can have lasting repercussions, especially as prolonged spells of inactivity may discourage young people from searching for a job (Helbling, Sacchi and Imdorf, 2019[2]). Preventive policies are crucial to curb NEET rates and help those affected to reintegrate into education or work. Notably, NEET rates differ between men and women; caregiving responsibilities often contribute to women being NEET (Amendola, 2022[3]; Brunet, Canada and Council of Ministers of Education, 2019[4]).
Country of birth – being native- or foreign-born – can have a significant impact on labour-market transitions. The age of migration also affects individuals’ attainment and how well they integrate into the job market. Research suggests that migration before the age of 6 avoids long-term disadvantages (Lemmermann and Riphahn, 2018[5]). The educational qualifications of foreign-born individuals also vary across countries, substantially influencing their access to the labour market.
On average across OECD countries, about one-third of 18-24 year-olds are no longer in formal education or training and have started employment.
Although foreign-born 15-29 year-olds are more likely to be NEET than their native-born peers in most OECD and partner countries, the opposite is observed in Australia, Hungary, Israel, Mexico, New Zealand and the United Kingdom.
In most countries, NEET rates are higher among 15-29 year-old foreign-born individuals who arrived in their country of residence at the age of 16 or older, compared to those who arrived before they turned 16.
This chapter analyses the situation of young people in transition from education to work: those in formal education or training, those who are employed and those who are NEET. The NEET group includes not only those who have not managed to find a job (unemployed NEETs), but also those who are not actively seeking employment (inactive NEETs). The analysis distinguishes between 18-24 year-olds and 15-29 year-olds, as a significant proportion of those in the narrower age group will be continuing their studies even though they are no longer in compulsory education in most countries.
Understanding how 18-24 year-olds are doing in the job market is particularly important because people in this age group have usually just completed upper secondary education (typically between the age of 17 and 19, see Chapter B3). Their labour-market status reflects how open the job market is to new school leavers and how easily they can enter the workforce. The share of 18-24 year-olds who are neither employed nor in formal education or training (NEET) decreased by an average of 2 percentage points between 2016 and 2023, on average across OECD countries with comparable data for both years. However, while the NEET rate decreased in some countries, it increased in others. Italy experienced the largest decrease in NEET rate (over 9 percentage points), while in Costa Rica and Lithuania the share rose over 3 percentage points over the same period (Figure A2.1).
More than two-thirds of 18-24 year-olds in Colombia, Israel and New Zealand are not in education. In New Zealand, 57% of young people in this age group are not in education but are employed, and 13.0% are NEET. In Israel, 52% are not in education but are employed, and 16.8% are NEET. In contrast, in Luxembourg, Mexico, the Netherlands and Slovenia, only 32% of 18-24 year-olds are not in education (Table A2.1). Cross-country differences may be influenced by typical graduation ages, with countries where young people complete their education earlier seeing more 18-24 year-olds entering the labour market.
When it comes to gender differences in NEET rates among 18-24 year-olds, there is no clear pattern across OECD countries. On average among OECD countries with available and comparable data for 2016 and 2023, 14.5% of women in this age group are NEET compared to 13.3% of men. In the Republic of Türkiye (hereafter “Türkiye”), the gender gap is the widest, with NEET rates of 41.4% among 18-24 year-old women and 21.4% among 18-24 year-old men. In contrast, in about one third OECD countries, 18-24 year-old men are more likely to become NEET than their female counterpart. This is notably the case in Estonia, where the NEET rates is 5 percentage points lower for 18-24 year-old women than for men in the same age group (Table A2.2).
NEET women are more likely to be inactive than NEET men. Inactive individuals are those who are not working and not seeking employment, unlike the unemployed, who are actively looking for work but may not be finding it due to skill mismatches or low demand for workers. The reasons why individuals are inactive can be varied. Although men tend to have lower educational attainment than women in most OECD countries (see Chapter A1) and therefore may have trouble matching their skills to labour-market needs, women are more likely to have family responsibilities. Gender differences in the share of 18-24 year-olds NEETs who are inactive vary significantly by country. For example, in Iceland, Mexico and Slovenia, over 90% of 18-24 year-old NEET women are inactive, while in Denmark, Estonia, Greece and Portugal, the gap between men and women is reversed, although less pronounced (Figure A2.2).
The interplay between education and employment in early adulthood varies significantly across OECD and partner countries. Combining education and employment helps students acquire technical and inter-personal skills that are helpful in the labour market and increases their chances of having a smooth transition into work. On average across OECD countries, 33% of 18-24 year-olds are in education and inactive in the labour market, while 19% combine their studies with employment. Some students’ jobs are related to their study programmes, allowing them to gain relevant work experience and technical skills. Work-study programmes are common in certain countries, such as Germany and Switzerland, but in others, students may combine working in unrelated jobs with their studies, which is often less beneficial to their labour-market prospects Table A2.1). Employment which is unconnected to students’ education can have adverse effects such as stress, especially when compounded by financial constraints or excessive work hours (Grozev and Easterbrook, 2022[6]).
Combining education and employment can significantly enhance labour market outcomes by equipping individuals with both theoretical knowledge and practical experience. Studies have shown that students who engage in work during their studies tend to have higher employment rates and earn higher wages upon graduation compared to their peers who do not work while studying (OECD, 2020[7]). This dual approach fosters the development of soft skills such as time management, teamwork, and problem-solving, which are highly valued by employers (Robotham, 2012[8]).
Being NEET significantly affects young people's transition into the labour market (Bynner and Parsons, 2002[9]). Individuals who remain NEET for long periods often find it harder to secure employment and even when they do find work, they tend to earn a lower income throughout their careers. Studies have also established a correlation between being NEET and experiencing marginalisation (Uchida and Norasakkunkit, 2015[10]). For foreign-born individuals, the transition from education to the labour market is more challenging than for their native-born counterparts and they are more likely to be unemployed (Uhlendorff and Zimmermann, 2014[11]). However, their unemployment rates tend to fall the longer they have been in their new country of residence (Amuedo-Dorantes and De La Rica, 2007[12]).
Foreign-born young people encounter more obstacles in education systems. Some education systems are ill-equipped to welcome foreign students (Nichols, Ha and Tyyskä, 2020[13]). As a result, foreign students often experience lack of assistance with the local language, rejection of foreign school transcripts and underfunded settlement services. These students find fewer opportunities to join the labour market and tend to have smaller networks; therefore, they are more likely to become NEET (OECD, 2017[14]).
The share of foreign-born 15-29 year-olds who are NEET differs considerably among OECD countries. In most countries, the NEET rates among foreign-born individuals in this age group are higher than among native-born 15-29 year-olds. The gap between the share of native-born and foreign-born 15-29 year-olds who are NEET varies considerably by country. In Austria, Costa Rica and Germany for example, the difference in the NEET rates between native- and foreign-born 15-29 year-olds is more than 13 percentage points, while in Canada and Chile, it is less than 1 percentage point. In contrast, in a few countries, including Australia, Hungary, Israel, Mexico, New Zealand and the United Kingdom, it is the native born who are more likely to be NEET (Figure A2.3). Differences in the size and characteristics of a country’s foreign-born population as well as other factors likely contribute to these differences.
In some countries foreign-born individuals are more likely to have tertiary qualifications than the native population. In others, it is foreign-born individuals who tend to have lower educational attainment than the native population (see Chapter A1). Lower educational attainment increases the risk of becoming NEET (OECD, 2022[15]).
The labour-market outcomes of foreign-born individuals are significantly influenced by the age at which they arrived in the host country (Lemmermann and Riphahn, 2018[5]). The age at which immigrants arrive in a new country can be an indicator of their future success (Myers, Gao and Emeka, 2009[16]). Individuals who arrive at a younger age tend to achieve higher wages and better educational outcomes (Beck, Corak and Tienda, 2012[17]). Various factors contribute to this trend. For instance, those who arrive in the host country at a younger age are more likely to attain native-level proficiency in the country's language (Myers, Gao and Emeka, 2009[16]). Early arrivals are also more likely to hold qualifications from the host country and they have better networks and knowledge of the labour market.
In most countries, NEET rates are higher among 15-29 year-olds who arrived in the country when they were 16 years old or older than among those who arrived before they turned 16. On average across the OECD countries, 12.6% of foreign-born 15-29 year-olds who arrived at the country of residence before they turned 16 years-old are NEET. The gap between these two groups of foreign-born individuals is widest in Italy, where 19.0% of those who arrived by the age of 15 are NEET compared to 42.0% of those who arrived at the age of 16 years or older (Table A2.3).
However, the impact of age at arrival on education and labour outcomes is influenced by country-specific factors such as the composition of the immigrant inflow – notably by category of immigrant, labour-market conditions and integration policies, to name just a few. Policies aimed at strengthening educational attainment and enhancing equity for older children or younger adults could help bridge the labour-market gap between individuals arriving as young children and those arriving later.
Country of Birth: Native-born individuals are those who were born in the country where they answered the survey, and foreign-born individuals are those who were born outside the country where they answered the survey
Educational attainment refers to the highest level of education successfully completed by an individual.
Employed, inactive and unemployed individuals: See Definitions section in Chapter A3.
Individuals in education are those who are receiving formal education and/or training.
Levels of education: See the Reader’s Guide at the beginning of this publication for a presentation of all ISCED 2011 levels.
NEET refers to young people neither employed nor in formal education or training.
Work-study programmes are formal education/training programmes combining inter-related study and work periods, for which the student/trainee receives pay.
Data from the national labour force surveys usually refer to the second quarter of studies in a school year, as this is the most relevant period for knowing if the young person is really studying or has left education for the labour force. This second quarter corresponds in most countries to the first three months of the calendar year (i.e. January, February and March), but in some countries to the second three months (i.e. April, May and June).
Education or training corresponds to formal education or training; therefore, someone not working but following non-formal studies is considered NEET.
For more information see the OECD Handbook for Internationally Comparative Education Statistics (OECD, 2018[18]) and Education at a Glance 2024 Sources, Methodologies and Technical Notes (https://doi.org/10.1787/e7d20315-en).
For information on the sources, see Chapter A1.
References
[3] Amendola, S. (2022), “Trends in rates of NEET (not in education, employment, or training) subgroups among youth aged 15 to 24 in Italy, 2004 - 2019”, Journal of Public Health (Germany), Vol. 30/9, https://doi.org/10.1007/s10389-021-01484-3.
[12] Amuedo-Dorantes, C. and S. De La Rica (2007), “Labour market assimilation of recent immigrants in Spain”, British Journal of Industrial Relations, Vol. 45/2, https://doi.org/10.1111/j.1467-8543.2007.00614.x.
[17] Beck, A., M. Corak and M. Tienda (2012), “Age at immigration and the adult attainments of child migrants to the United States”, Annals of the American Academy of Political and Social Science, Vol. 643/1, https://doi.org/10.1177/0002716212442665.
[4] Brunet, S., S. Canada and C. Council of Ministers of Education (2019), “The Transition from School to Work: The NEET (Not in Employment, Education or Training) Indicator for 20- to 24-Year-Olds in Canada. Education Indicators in Canada: Fact Sheet”, Statistics Canada 81.
[9] Bynner, J. and S. Parsons (2002), “Social exclusion and the transition from school to work: The case of young people not in education, employment, or training (NEET)”, Journal of Vocational Behavior, Vol. 60/2, https://doi.org/10.1006/jvbe.2001.1868.
[6] Grozev, V. and M. Easterbrook (2022), “Accessing the phenomenon of incompatibility in working students’ experience of university life”, Tertiary Education and Management, Vol. 28/3, pp. 241-264, https://doi.org/10.1007/s11233-022-09096-6.
[2] Helbling, L., S. Sacchi and C. Imdorf (2019), “Comparing long-term scarring effects of unemployment across countries: The impact of graduating during an economic downturn”, in Negotiating Early Job Insecurity: Well-being, Scarring and Resilience of European Youth, https://doi.org/10.4337/9781788118798.00011.
[5] Lemmermann, D. and R. Riphahn (2018), “The causal effect of age at migration on youth educational attainment”, Economics of Education Review, Vol. 63, https://doi.org/10.1016/j.econedurev.2017.11.001.
[16] Myers, D., X. Gao and A. Emeka (2009), “The gradient of immigrant age-at-arrival effects on socioeconomic outcomes in the U.S”, International Migration Review, Vol. 43/1, https://doi.org/10.1111/j.1747-7379.2008.01153.x.
[13] Nichols, L., B. Ha and V. Tyyskä (2020), “Canadian immigrant youth and the education-employment nexus”, Canadian Journal of Family and Youth, Vol. 12/1, https://doi.org/10.29173/cjfy29497.
[15] OECD (2022), Education at a Glance 2022: OECD Indicators, OECD Publishing, Paris, https://doi.org/10.1787/3197152b-en.
[7] OECD (2020), “How’s Life? 2020”, OECD Publishing, https://doi.org/10.1787/9870c393-en.
[18] OECD (2018), OECD Handbook for Internationally Comparative Education Statistics: Concepts, Standards, Definitions and Classifications, OECD Publishing, Paris, https://doi.org/10.1787/9789264304444-en.
[14] OECD (2017), Catching Up? Intergenerational Mobility and Children of Immigrants, OECD Publishing, Paris, https://doi.org/10.1787/9789264288041-en.
[1] Petrongolo, B. (2019), The gender gap in employment and wages, https://doi.org/10.1038/s41562-019-0558-x.
[8] Robotham, D. (2012), “Student part-time employment: Characteristics and consequences”, Education and Training, Vol. 54/1, https://doi.org/10.1108/00400911211198904.
[10] Uchida, Y. and V. Norasakkunkit (2015), “The NEET and Hikikomori spectrum: Assessing the risks and consequences of becoming culturally marginalized”, Frontiers in Psychology, Vol. 6, https://doi.org/10.3389/fpsyg.2015.01117.
[11] Uhlendorff, A. and K. Zimmermann (2014), “Unemployment dynamics among migrants and natives”, Economica, Vol. 81/322, pp. 348-367, https://doi.org/10.1111/ecca.12077.
Cut-off date for the data: 14 June 2024. Any updates on data and more breakdowns can be found on the OECD Data Explorer (http://data-explorer.oecd.org/s/4s).
Note: See under Chapter A2 Tables for StatLink and Box A2.1 for the notes related to this Table.
Source: OECD (2024). See Source section for more information and Education at a Glance 2024 Sources Methodologies and Technical Notes (https://doi.org/10.1787/e7d20315-en).
Note: See under Chapter A2 Tables for StatLink and Box A2.1 for the notes related to this Table.
Source: OECD (2024). See Source section for more information and Education at a Glance 2024 Sources Methodologies and Technical Notes (https://doi.org/10.1787/e7d20315-en).
How to read this table: In Column 1 for Australia, 12.4% of native-born 15-29 year-olds are NEET.
Note: See under Chapter A2 Tables for StatLink and Box A2.1 for the notes related to this Table.
Source: OECD (2024). See Source section for more information and Education at a Glance 2024 Sources Methodologies and Technical Notes (https://doi.org/10.1787/e7d20315-en).
Table A2.1. Percentage of 18-24 year-olds in education/not in education, by work status (2023)
Note: NEET refers to young people who are neither employed nor in formal education or training. Data usually refer to the second quarter of studies, which corresponds in most countries to the first three months of the calendar year, but in some countries, to the second three months. See Definitions and Methodology sections for more information.
1. Reference year differs from 2023: 2022 for Chile and South Africa; and 2018 for Argentina.
Table A2.2. Trends in the percentage of 18-24 year-olds in education/not in education, by work status and gender (2016 and 2023)
Note: NEET refers to young people who are neither employed nor in formal education or training. Data usually refer to the second quarter of studies, which corresponds in most countries to the first three months of the calendar year, but in some countries, to the second three months. See Definitions and Methodology sections for more information. Columns showing the totals for both men and women are available for consultation on line.
1. Reference year differs from 2016: 2015 for Chile and Romania.
2. Reference year differs from 2023: 2022 for Chile and South Africa; and 2018 for Argentina.
Table A2.3. Percentage of native-born and foreign-born 15-29 year-olds who are NEET, by age at arrival in the country (2023)
Note: NEET refers to young people who are neither employed nor in formal education or training. Data usually refer to the second quarter of studies, which corresponds in most countries to the first three months of the calendar year, but in some countries, to the second three months. See Definitions and Methodology sections for more information.
1. Reference year differs from 2023: 2022 for Chile, 2019 for Australia and 2017 for Ireland.
2. The age group refers to 16-29 year-olds.
Data and more breakdowns are available on the OECD Data Explorer (http://data-explorer.oecd.org/s/4s).
Please refer to the Reader's Guide for information concerning symbols for missing data and abbreviations.