On average across OECD countries, 6% of 15-19 year-olds are neither employed nor in education or training (NEET), and this percentage increases to 16% among 20-24 year-olds and 18% among 25-29 year-olds.
In almost all OECD and partner countries, the share of the inactive population among 18-24 year-old NEETs is higher for women than for men: on average, over 65% of NEET women are inactive, while the share does not reach 50% among NEET men.
On average across OECD countries, 18% of foreign-born 15-29 year-olds are NEETs, compared to 13% of native-born 15-29 year-olds.
Education at a Glance 2018
Indicator A2. Transition from education to work: Where are today's youth?
Context
The length and the quality of the schooling that individuals receive have an impact on their transition from education to work, as do labour-market conditions, the economic environment and the cultural context. In some countries, young people traditionally complete education before they look for work, while in other countries education and employment are concurrent. In some countries, there is little difference between how young women and young men experience the transition from education to work, while in other countries significant proportions of young women raise their family full time after leaving the education system and do not enter the labour force. When labour-market conditions are unfavourable, young people often tend to stay in education longer, because high unemployment rates drive down the opportunity costs of education, and they can improve their skills for when the labour-market situation improves.
To improve the transition from education to work, regardless of the economic climate, education systems should aim to ensure that individuals have the skills required in the labour market. During recessions, public investment in education could be a sensible way to counterbalance unemployment and invest in future economic growth, by building the needed skills. In addition, public investment could be directed towards potential employers, in the form of incentives to hire young people.
Being left out of employment can have long-lasting consequences, especially when people experience long spells of unemployment and become discouraged. NEETs among young people represent a current concern, but there can also be significant future consequences for individuals and society if no action is taken to address this issue.
Young immigrants are particularly at risk. According to the International Migration Outlook 2017 (OECD, 2017[1]) 13% of the total population in OECD countries are foreign-born. Some of these people are still suffering the consequences of the economic crisis. For example, in Europe, where the recovery from the crisis has been slower, migrant youth have experienced rising unemployment rates since 2007.
Other findings
A higher ending age of compulsory education is not systematically associated with higher participation in education. In Chile, for example, the percentage of 15-19 year-olds in education is below the OECD average, although the ending age of compulsory education (age 18) is among the highest across OECD countries.
In over half of OECD and partner countries that reported subnational data on the transition from education to work, the share of 15-29 year-old NEETs in the subnational region with the highest share is twice or more as large as in the subnational region with the lowest share.
Across OECD and partner countries, 53% of 18-24 year-olds are studying, and 17% of 18-24 year-olds combine education and employment.
Note
This indicator analyses the situation of young people in transition from education to work: those who are in education, those who are employed, and those who are neither employed nor in education or training. The latter 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). Part of the analysis focuses on 18-24 year-olds, as compulsory education does not affect the proportion of inactive or unemployed at this age, when a significant proportion of young people are continuing their studies after compulsory education.
Analysis
Young men and women (age 18-24) who are NEETs
Across OECD and partner countries, 53% of 18-24 year-olds are studying. Most of these young students are only studying, but across countries 17% of them combine education and employment. This share varies between countries, from less than 3% in Hungary, Italy and the Slovak Republic to over 35% in Iceland and the Netherlands (Table A2.1).
The transition from education to work can be a difficult period for many young people. Spells of unemployment, job insecurity because of low-paid or temporary contracts, and the uncertainties associated with starting to live autonomously produce a challenging phase in young people’s lives.
Of the 18-24 year-olds who have left education (47% on average across OECD countries), most are working, but there is still a high share of NEETs. Among all 18-24 year-olds, 33% are not in education and employed, and 14% are NEETs (Table A2.1).
The percentages of NEETs are generally similar by gender. On average across OECD countries, the difference between men and women is about 2 percentage points, but there is significant variation across countries. In Chile, Colombia, Costa Rica, Mexico and Turkey, the share of NEETs is generally high, and it is systematically higher for women than for men, with differences of at least 10 percentage points. In contrast, in Austria and Switzerland, the share of NEETs aged 18-24 is generally low, and it is about 5 percentage points lower for women than for men (Figure A2.1).
With regard to inactive NEETs, gender gaps are larger than for the whole NEET population, and countries follow a similar trend. Figure A2.2 shows that in almost all OECD and partner countries, the share of the inactive population among NEETs is higher for women than for men. On average in 2017, over 65% of NEET women are inactive, while the share does not reach 50% among NEET men (Figure A2.2).
In Greece, Portugal and Spain, the share of the inactive population is low among both men and women who are NEETs. This implies that most NEETs are actively looking for a job and therefore fall into the category of unemployed NEETs. In contrast, in Mexico and Turkey, about 90% of women NEETs are inactive, the highest share across all OECD and partner countries. In these two countries, the share of inactive NEETs is much lower among men, showing a strong gender gap in the composition of the NEET population. Costa Rica and the Slovak Republic also show a large gender gap in the share of inactive NEETs, with a difference of above 30 percentage points. The reasons for this large gap can be diverse, but one factor is that women may still largely be the ones responsible for raising families and may decide to leave the labour market to care for their children. They would, therefore, be over-represented among the inactive. It is also worth noting that the share of 18-24 year-old NEETs is 7 percentage points higher in Costa Rica than in the Slovak Republic (Figure A2.2 and Table A2.1).
Transition from education to work by age
The period between age 15 and age 29 is quite long, and there are many changes associated with the teenage years and young adulthood. Breaking this period down into smaller age groups allows for a better assessment of the different situations among this population. In most countries, the period from age 15-19 encompasses the end of upper secondary education and the transition to work or tertiary education. The periods from age 20-24 and age 25-29 are a time of increased financial autonomy, when most people leave education and enter the labour market. On average across OECD countries, about 40% of 20-24 year-olds are no longer in education and are in employment. This percentage rises to over 65% among 25-29 year-olds (Table A2.2 and (OECD, 2018[2])).
Not all those who leave education find work. When they do, many accept temporary contracts or low-paid jobs, due to their lack of experience. This difficult transition to the labour market is also reflected in the high percentage of NEETs. On average across OECD countries, 16% of 20-24 year-olds are NEETs, and this percentage increases to 18% among 25-29 year-olds (Figure A2.3).
Across OECD and partner countries, the transition from education to work is very diverse. Figure A2.3 shows some of the patterns observed across selected countries. In Colombia, Costa Rica and Turkey, the share of NEETs is generally high, but particularly so among 15-19 year-olds: more than 15% are in this situation, compared to the OECD average of about 6%. At this age, being out of education means that the highest possible level of education completed is upper secondary education, but it is likely that a high share will not even have completed that level (see Indicator A1). In these countries, it seems that there are lost opportunities for a number of young adults who could benefit from the positive outcomes of further education (Figure A2.3).
Greece, Italy and Spain have all been severely hit by the last economic crisis, and the high share of the NEET population still reflects that. In these countries, the level of NEETs is a little higher than the OECD average among 15-19 year-olds, but there is a steep and continuous increase in the share of NEETs with age. In Greece, the share of NEETs among 15-19 year-olds is below 10%, and it reaches 35% among 25-29 year-olds, the highest share across all OECD countries. In Greece and Spain, the high level of NEETs among 25-29 year-olds is mostly associated with high unemployment and problems in finding a job, rather than with high inactivity. In Italy, both inactivity and unemployment among 25-29 year-olds are above the OECD average (Figure A2.3 and (OECD, 2018[2])).
In contrast, in Iceland, the Netherlands and Sweden, the share of NEETs is low across all age groups. This is particularly true in Iceland, where the level of NEETs is constant, at about 5% across all age groups. Interestingly, the low share of NEETs is not so much related to a higher-than-average share of employed people, but rather to a higher-than-average share of 25-29 year-olds in education. Similar observations hold true for the Netherlands and Sweden, where adults seem to stay in education longer (Figures A2.3 and A2.4, and (OECD, 2018[2])).
A comparison of data on the ending age of compulsory education and the share of 15-19 year-olds in education across countries shows that there is no direct link between the two. For example, in Slovenia, the enrolment rate of 15-19 year-olds is 94%, despite the fact that compulsory education ends at age 14, the lowest school-leaving age across OECD countries (see Annex 1). In contrast, Chile is one of the OECD countries with the highest ending age of compulsory education (age 18), but the enrolment rate of 15-19 year-olds is 83%, suggesting that dropout rates are high (Figure A2.4).
Native-born and foreign-born young people who are NEETs
In most OECD countries, the share of foreign-born NEETs among 15-29 year-olds is larger than the share of native-born NEETs of the same age. On average across OECD countries, 18% of foreign-born 15-29 year-olds are NEETs, while 13% of native-born 15-29 year-olds are in this situation. The differences are largest in Austria and Germany, where the percentage is about 25% among foreign-born 15-29 year-olds and below 10% among native-born 15-29 year-olds. In contrast, in about one third of countries, the difference between the two groups is below 3 percentage points. For example, there is only a small difference between the two groups in New Zealand. It has one of the highest shares of foreign-born 15-29 year-olds (27%), but the share of NEETs among them (10%) is the lowest among all OECD countries with data. This low share of NEETs among foreign-born 15-29 year-olds in New Zealand might be related to its point-based immigration system, which prioritises higher-skilled migrants and makes migration more selective (Figure A2.5 and (OECD, 2017[1])).
In Greece, Italy and Spain, about one in three foreign-born 15-29 year-olds are NEETs. In these countries, a high share of native-born 15-29 year-olds are also NEETs, but to a much lower extent than foreign-born 15-29 year-olds. The share of foreign-born 15-29 year-old NEETs in Greece (over 35%) is the highest across OECD countries. But this may affect fewer people than in Italy and Spain, because in Greece only 7% of 15-29 year-olds were born abroad, while this is the case for 12% in Italy and 17% in Spain (Figure A2.5).
Subnational variations in the percentage of young people who are NEETs
On average across OECD countries, 47% of 15-29 year-olds are studying, 39% are not studying and working, and 13% are NEETs, but there are significant subnational variations within countries (Table A2.2 and (OECD/NCES, 2018[3])).
In 10 of the 17 OECD and partner countries that reported subnational data on the transition from education to work, the share of 15-29 year-old NEETs in the subnational region with the highest share is twice or more as large as in the subnational region with the lowest share. When dividing the highest shares by the lowest shares within countries, the ratio is 3 or more in Canada, Italy, the Russian Federation and Spain. In contrast, across the OECD and partner countries that reported subnational data, the difference is smallest in Ireland and Slovenia. However, this may be related to the fact that there are only two subnational entities in these two countries (Figure A2.6).
Many countries in Figure A2.6 have outlier region(s) with a particularly high percentage of NEETs compared to the national average. This is particularly striking for Canada and the Russian Federation (two large countries with many subnational regions), but it is also true for Austria, Germany, Italy, Poland, Spain and Turkey (Figure A2.6).
In general, the variations are low in Belgium, Finland, Ireland and Slovenia, but these countries have five or fewer subnational regions (far fewer than the 85 subnational regions in the Russian Federation) (Figure A2.6).
Definitions
Educational attainment refers to the highest level of education attained by a person.
Employed, inactive and unemployed individuals: See Definitions section in Indicator A3.
Individuals in education are those who had received formal education and/or training in the regular educational system in the four weeks prior to being surveyed.
Levels of education: See the Reader’s Guide at the beginning of this publication for a presentation of all ISCED 2011 levels.
NEET: Neither employed nor in education or training.
Methodology
Data usually refer to the second quarter of studies, 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, but in some countries to the spring quarter (i.e. March, April and May).
Education or training corresponds to formal education; therefore, someone not working but following non-formal studies is considered a NEET.
For information on the methodology for subnational regions, see Indicator A1.
Please see the OECD Handbook for Internationally Comparative Education Statistics 2018 (OECD, 2018[4]) for more information and Annex 3 for country-specific notes (http://dx.doi.org/10.1787/eag-2018-36-en).
Lithuania was not an OECD member at the time of preparation of this publication. Accordingly, Lithuania does not appear in the list of OECD members and is not included in the zone aggregates.
Source
For information on the sources, see Indicator A1.
Data on subnational regions for selected indicators are released by the OECD, with support from the US National Centre for Education Statistics (NCES), and 17 countries have submitted their data for this edition of Indicator A2: Australia, Austria, Belgium, Canada, Finland, Germany, Greece, Ireland, Italy, Poland, the Russian Federation, Slovenia, Spain, Sweden, Turkey, the United Kingdom and the United States. Subnational estimates were provided by countries using national data sources or by Eurostat based on data for Level 2 of the Nomenclature of Territorial Units for Statistics (NUTS 2). For the United Kingdom, the subnational regions are based on NUTS 1.
Note regarding data from Israel
The statistical data for Israel are supplied by and are under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
References
[2] OECD (2018), Education at a Glance Database - Transition from education to work, http://stats.oecd.org/Index.aspx?datasetcode=EAG_TRANS.
[4] OECD (2018), OECD Handbook for Internationally Comparative Education Statistics 2018: Concepts, Standards, Definitions and Classifications, OECD Publishing, Paris, https://doi.org/10.1787/9789264304444-en.
[1] OECD (2017), International Migration Outlook 2017, OECD Publishing, Paris, http://dx.doi.org/10.1787/migr_outlook-2017-en.
[3] OECD/NCES (2018), Education at a Glance Subnational Supplement, OECD/National Center for Education Statistics, Paris and Washington, DC, https://nces.ed.gov/surveys/annualreports/oecd/index.asp.
Indicator A2 Tables
Table A2.1. Percentage of 18-24 year-olds in education/not in education, by work status (2017)
Table A2.2. Trends in the percentage of young adults in education/not in education, employed or not, by age group (2007 and 2017)
Table A2.3. Percentage of native- and foreign-born 15-29 year-old NEETs, by age at arrival in the country (2017)
Cut-off date for the data: 18 July 2018. Any updates on data can be found on line at http://dx.doi.org/10.1787/eag-data-en. More breakdowns can be found at http://stats.oecd.org/, Education at a Glance Database.