Go to content

5.1 Deep dive 1: NEETs in the Nordic countries

Key-takeaways

A significant proportion of young people are active participants in the labour market or are participating in education across the Nordic countries. However, a subset of young individuals in the Nordic countries are in the NEET-group, i.e. neither in education nor employment or training. 
The NEET group encompasses a wide range of young people with different backgrounds and challenges and can be divided into two broad subgroups: (1) Youth facing challenges solely related to being outside education or employment, and (2) Youth dealing with additional issues beyond their lack of education and employment. The second subgroup often face complex barriers to employment or education, for example low educational attainment, physical disabilities, poor mental health, low self-esteem and behavioural issues, or substance abuse. Some of these risk factors can be present at the same time and are typically entangled in complex ways.
Successful inclusion of these vulnerable young people into the labour market or the educational system often requires tailored interventions and support to address their unique needs and requires parallel efforts across multiple levels and sectors. For instance, combining employment-oriented measures with social, health-focused, or skill-development initiatives proves particularly effective. We will here emphasise three type of useful interventions targeting vulnerable youth.
Acquisition of everyday life skills: Measures that help young people with daily routines or the ability to manage their finances may have positive impact on their ability to engage in work or education, as some of the most vulnerable young people face difficulties managing everyday life.
Follow-up and support: The aim of supported employment (SE) is to assist the persons in finding and maintaining paid employment in the open labour market with the same wages, terms and conditions as other employees. The general idea behind SE is place then train and an important element is ongoing support whilst in paid employment.  Support is individualized and is on a need basis for both the employee and the employer. Supported employment sometimes combines employment-oriented measures with social, health-focused, or skill-development initiatives.
Alternative educational pathways: Additionally, some young people have negative past experiences with the education system, and therefore they may be unmotivated to pursue education when they first enter the employment system. As a result, alternative educational pathways, such as Norway’s trade certificate (fagbrev) without schooling, are highlighted by caseworkers as important tools.

Introduction

A significant proportion of young people are active participants in the labour market across the Nordic countries. As stated in previous reports in this project, the Nordic countries are particularly good at integrating young people into the workforce. Among young people aged 15–29 years, the average employment rate in the Nordic countries in 2020 was 58 pct., which was significantly higher than the EU-27 average of 48 percent. At the same time, the proportion of young people enrolled in education was also higher in the Nordic region than the EU-27 (54 pct. versus 50 pct.) (Højbjerre et al., 2022).
However, there remains a subset of young individuals in the Nordic countries who remain in the NEET-group, i.e. neither in education nor employment or training. The share in the NEET-group has changed only slightly for the 15–29-years-old in the Nordic countries over a ten-year period from 2013 to 2023, falling from around 8 pct. to 7 pct. As demonstrated in figure 5.1.1. There are some differences between the Nordic countries. In 2023, the share in the NEET group was lowest in Sweden at around 6 percent and highest in Finland at around 9 percent. Denmark stands out from the other Nordic countries as the share of NEET increased slightly from 2013 to 2023, while Sweden stands out with a more than 2 percentage points decrease in the share of NEET as shown in figure 5.1.2. The share of NEET is significantly lower in the Nordic countries compared to the EU-27, but the decrease in the share of NEET is smaller than in EU27 in the ten years period from 2013 to 2023.
To get a better understanding of the situation of young people in the NEET group, this deep dive focuses on barriers for young people in the NEET-group to entry the labour market and instruments that can help them to gain foothold in the labour market.
Figure 5.1.1 NEET rate in the Nordics and EU, 2013-2023
Source: Own calculations based on microdata from Eurostat’s Labour Force Survey.
Figure 5.1.2 NEET rates in 2013 and 2023 by country
Source: Own calculations based on microdata from Eurostat’s Labour Force Survey.

The NEET Group

The NEET group encompasses a wide range of young people with different backgrounds and challenges. Importantly, not all members of this group are vulnerable or disadvantaged, and, hence, not all can be characterized as being at risk of social exclusion (Katznelson et al., 2015; Mascherini, 2018; Bolvig et al., 2019; Kleif, 2021). To better understand its composition, it is helpful to distinguish between two broad subgroups with varying levels of complexity (Bolvig et al., 2019): 
  1. Youth facing challenges solely related to being outside education or employment.
  2. Youth dealing with additional issues beyond their lack of education and employment.
This deep dive focuses on the latter subgroup – youth who struggle with multiple, interconnected challenges that extend beyond being NEET. These young people often face complex barriers to employment or education, requiring tailored interventions and support to address their unique needs (Stea et al. 2024).

Barriers to education and employment for vulnerable young people

Previous studies highlight that vulnerable youth, those who face challenges beyond a lack of education or employment, often remain disconnected from both domains for prolonged periods. This group is often characterized by complex social and health-related issues, including for instance substance abuse, mental illness and limited work or educational experience. They often struggle with multiple, overlapping difficulties (Almqvist & Lassinantti, 2018; Katznelsoin et al., 2015; Frøyland et al., 2022; Bolvig et al., 2019; Andersen, 2017; Hall et al., 2022). Mental health problems are particularly prevalent, with an increasing trend in several Nordic countries over recent decades (Hall et al., 2022; Rosenberg et al., 2024). For instance, in Sweden increasing numbers of young people report excessive worry and anxiety, while at the same time hospitalization rates for persons with mental illnesses have grown. Similarly, Norway has documented comparable developments, and mental health conditions are now the leading cause of young adults entering disability pension schemes in both countries (Hall et al., 2022).
Research also highlights that the reasons why some young people become de­tach­ed from education and employment are rooted not only in individual but also insti­tutio­nal factors, such as the structure of vocational education programs and access to apprenticeships (Frøyland et al., 2022). Hence, the literature identifies several key risk factors for being excluded from education and employment (e.g., Frøyland et al., 2022; Andersen, 2017; Bolvig et al., 2019), including but not limited to:
  • Immigrant background
  • Low educational attainment (including parents’ education level)
  • Physical disabilities and health challenges
  • Poor mental health and psychosocial problems
  • Personal traits such as low self-esteem and behavioural issues
  • Poor school performance and/or negative school experiences
  • A disadvantaged upbringing
  • Engaging in criminal activity
  • Substance abuse
Some (or ultimately all) of these risk factors can be present at the same time, and they are typically entangled in complex ways. In previous reports in this project we have developed a framework of 24 different employment barriers based on a literature review. We have subsequently utilized microdata from Eurostat to operationalize 9 of these 24 employment barriers (Højberre et al. 2023a and 2023b). Calculations for the NEET group show that around 80 pct. of the young people in the NEET group face at least two barriers and around 25 pct. face at least four barriers. Many of the young people struggle with health issues and/ or lack education and working experience. Lack of job opportunities is also a prevalent employment barrier as demonstrated in figure 5.2.
Figure 5.2 Prevalence of barriers among the NEET-group in the Nordic countries
Source: Own calculations based on microdata from Eurostat’s EU-SILC. For a description of the operationalization of the barriers, see Højbjerre et al. (2023b)
Caseworkers across the Nordic countries also highlight that many of the young individuals they encounter struggle with a wide range of challenges that extend beyond employment itself. These include mental health issues (for example depression and anxiety), substance abuse, low self-confidence, lack of work identity and work experience, and difficulties managing everyday life. While this group is highly heterogeneous, a common challenge is a disadvantaged background, and a complex set of interrelated problems. According to multiple caseworkers, those with the greatest need for assistance often face severe mental health challenges, such as personality disorders in addition to depression and/or anxiety. Another significant issue is that many of these young people have not received adequate support or diagnosis while participating in primary education. As a result, they often enter the employment system without proper assessment or understanding of their needs and health issues.
The evolving labour market has further exacerbated these young people’s challenges with regards to employment. As job requirements become increasingly demanding, the barriers for employment these young individuals face grow higher. Several caseworkers mention that the thresholds for entering the labour market have risen significantly, with employers expecting young people to possess a wide range of skills and knowledge, that many vulnerable young people lack. Formal qualifications are now required for most jobs, but many of these young people don’t have an education or previous work experience, making it difficult for them to meet these expectations.

Employment instruments targeting young NEETs in the Nordic countries

Across the Nordic countries, there is a strong political focus on targeting employment policies and initiatives at young people to increase their participation in education and the labour market while mitigating the potential long-term effects of youth unemployment (Hall et al., 2022). For instance, Denmark introduced legislation in 2019 to guide municipal efforts for individuals under the age of 25 years. This law emphasizes cross-professional, cross-organizational, and cross-sectoral collaboration centered on the needs of each young person (KL, 2023). Similarly, Norway implemented a new youth guarantee through NAV in July 2023, obligating enhanced support for young people aged 16 to 30 years. This guarantee ensures rapid and close follow-up for those in the target group for as long as necessary (NAV, 2024). A common feature of these initiatives is the emphasis on interdisciplinary youth teams to provide coordinated and comprehensive support for young people facing multifaceted challenges.
Evidence on the causal effects of interventions aimed at vulnerable youth outside education and employment (NEETs) remains limited, and it may be challenging to evaluate the interventions. Bolvig et al. (2019) highlighted this challenge in a study of Danish projects and initiatives, emphasizing that integrated efforts often involve intertwined components, making it difficult to isolate the impact of individual measures. This issue is mirrored in a Norwegian literature review (Frøyland et al., 2022), which underscores the complexity of evaluating such interventions. Additionally, positive outcomes—such as improved health, educational performance, and sustained employment—tend to unfold gradually and vary across individuals, making their measurement particularly challenging. In the following part of this section will we present some important results from the limited research literature as well as provide insights from our caseworker interviews.

Multiple interconnected challenges require holistic interventions

Interventions targeting vulnerable young people must be holistic and consider the major and complex challenges that young people face (Frøyland et al. 2022). Bolvig et al. (2019) and Frøyland et al. (2022) find that successful inclusion of young people into the labour market and/or the educational system often requires parallel efforts across multiple levels and sectors. For instance, combining employment-oriented measures with social, health-focused, or skill-development initiatives proves particularly effective. Nordic caseworkers corroborate this, noting that while labour market training is a valuable tool, it rarely succeeds in isolation and works best when integrated into a broader, well-structured plan (Højbjerre et al., 2024).
According to several caseworkers, it is crucial that support for young people is adaptable and tailored to their specific needs. A Norwegian caseworker noted that while NAV offers numerous tools, the challenge lies in creating meaningful and individualized pathways for young people, many of whom face issues such as financial instability or housing insecurity. Interventions must therefore go beyond employment or education to address social and health-related barriers while building personal and social skills. The same caseworker also stressed that effective outcomes are not solely a product of the instruments used but also depend on the capacity for ongoing follow-up, a core objective of Norway’s youth guarantee.
Given that many young people, that enter the employment system, have complex needs, coordination between actors such as psychiatric services, social authorities, educational institutions, and businesses is emphasized by caseworkers as particularly critical. This need for comprehensive support is echoed in other studies (e.g., Rosenberg et al., 2024; Bolvig et al., 2019; Frøyland et al., 2022). However, long waiting times in psychiatry and a lack of coherence between sectors (e.g. social and health services) are cited as challenges by several caseworkers in several countries. These challenges are also mirrored in previous studies, i.e. research highlights that young people with complex problems often face fragmented support due to initiatives being dispersed across various professional fields and sector-specific services, each addressing challenges within their own scope of responsibilities (Frøyland et al., 2022; Almqvist & Lassinantti, 2018; Rosenberg et al., 2024). This fragmentation can lead to unstable interventions. Furthermore, the organization of welfare services does not always effectively address these complexities or support young people in overcoming their difficulties. A recurring theme in the literature is how young people "fall through" during key transitions, such as from school to work or between educational stages (Frøyland et al., 2022).

Key elements in parallel interventions

Görlich (2016) argues that parallel interventions must incorporate three key elements:
  • individual-focused initiatives, which enhance self-development and motivation
  • relational interventions, such as mentoring and network-building
  • organizational measures, ensuring targeted and coordinated collaboration between relevant actors
Frøyland et al. (2022) also emphasizes the importance of individual and relationship-building measures. Examples include providing young people with mentors or counselors who maintain close, ongoing dialogue and adapt support to their unique needs. Building trust and strong relationships between young people and support systems is particularly important, as it creates a foundation for meaningful engagement with successful outcomes often requiring that young people feel seen, valued, and acknowledged. This point was also highlighted in the previous report in this project (Højbjerre et al., 2024). This underscores the necessity of allocating resources to enable consistent and close follow-up. However, several caseworkers ask for more time with the young clients, so they better can figure out what is troubling them, and prepare a sequence of interventions that are coherent and of longer duration.

Coping with everyday life

As mentioned in the section about barriers, some of the most vulnerable young people face difficulties managing everyday life which hinder their ability to engage in work or education. A Norwegian caseworker reports that young people are not able to manage basic situations in their everyday life, for instance with respect to financial management and social relations could be an element:
What we often see is that young people have not learned much from home due to a difficult upbringing, so I think life management would have been a good idea.
Norwegian caseworker
To ensure a smooth transition to the labour market or education, several caseworkers highlight, that it is essential that young people acquire both practical job skills and everyday life skills. Internship programs and wage subsidy schemes are highlighted as effective tools in all countries, as they provide young people with work experience and a sense of self-worth. For the most vulnerable young people, initiatives that combine basic life skills training with labour market attachment are crucial. Norwegian caseworkers emphasize the importance of support in everyday skills such as financial management and social relationships, but also that the employment services ought to have more measures that could learn the young clients to cope with everyday life challenges.
Research supports a focus on everyday-life-coping. For instance, Bjorvatn et al. (2021) demonstrate that goal-setting interventions focused on daily habits – such as (good) sleep, physical exercise, and (reduced/ no) substance use – can increase employment likelihood, improve life satisfaction, and enhance individuals' sense of control. Similarly, studies from Denmark highlight how challenges like unstable housing, poor financial management, and lack of daily routines can prevent labour market attachment (Væksthusets Forskningscenter, 2012).
In both Denmark and Norway caseworkers mention that they utilize mentorship programs, where a mentor from the job center or the workplace helps the young person navigate practical and psychosocial challenges. However, a Danish caseworker mention that the period during which they can offer a mentoring scheme is too short for some of the young clients, and that it would be desirable to extend this period. Previous experience from Denmark shows that mentorship programs are often used to help vulnerable unemployed cope with everyday matters and can be very useful in helping individuals solve difficulties that hinder them from participating in activities related to employment or education (Albæk et al., 2012; Albæk et al., 2015). These findings underline the need for holistic support that combines practical skills development with interventions addressing everyday life challenges.

Supported employment

Ongoing follow-up and support are also emphasized as important by caseworkers in the Nordic countries and is a central element of Supported Employment (SE). The general idea behind SE is place then train.
A Swedish example of SE (targeting young adults between 19 and 29 with disability pension) included assisted job search and placement assistance, follow-along support and job development. Besides handling problematic situations, the caseworkers from PES also served as backup in situations, where the individual faced unexpected negative health issues. This meant that the caseworker sometimes might step in and do the participant’s job. An evaluation of the intervention showed a positive effect of supported employment on the employment outcomes of the young adults (Fogelgren et al., 2023).
Supported employment sometimes combines employment-oriented measures with social, health-focused, or skill-development initiatives. This is the case with Individual Placement and Support (IPS). IPS targeting young adults in Norway, who are in the risk of early work disability, is evaluated in Sveinsdottir et al. (2019). The participants had various social and health related challenges that not necessarily involved mental illness. Therefore, the IPS principle of integrating employment services with mental health treatment was not implemented, although health personnel were involved in cases where it was applicable and accepted by the participant. The study finds positive effects of IPS on employment for young adults (18–29) (Sveinsdottir et al., 2019).

Supported Employment (SE)

The aim of SE is to assist the persons in finding and maintaining paid employment in the open labour market with the same wages, terms and conditions as other employees – the general idea is place then train. An important element is ongoing support whilst in paid employment.  Support is individualized and is on a need basis for both the employee and the employer (European Union of Supported Employment, 2024). 
The most well-known type of SE is probably Individual Placement and Support (IPS). In IPS there is an additional emphasis on the co-location of employment and clinical staff. IPS is a manual-based intervention that was originally developed for people with severe mental illness. IPS builds on eight principles: eligibility based on client choice, focus on competitive employment, integration of mental health and employment services, attention to client preferences, work incentives planning, rapid job search, systematic job development and individualized support (Hellström et al., 2017).
Icelandic caseworkers talked about some challenges with a newly established Icelandic ‘IPS light’ programme aiming at assisting vulnerable youth aged 18–29 years find a job or start an education. They recounted that although a sizeable number of young people might benefit from ‘IPS light’ in practice it was not always easy to provide this support for young people who might not be ready to receive it. In the first place, many young unemployed persons did not want a job, and if they did and might benefit from support, they might not want an IPS consultant accompany them to the employer or assist them in the workplace for fear of stigmatization. Still, their overall experience was that a number of young people did benefit from their IPS light approach.

Alternative educational pathways

Across the Nordic countries, there is a strong focus on increasing the number of young people completing education. However, according to several caseworkers, many vulnerable young people do not thrive in traditional educational settings. Additionally, some young people have negative past experiences with the schooling system, and therefore they may be unmotivated to pursue education when they first enter the employment system. As a result, alternative educational pathways, such as Norway’s “trade certificate” without schooling, are highlighted by caseworkers as important tools.

Trade certificate (fagbrev)

Several Norwegian caseworkers highlight that a trade certificate (fagbrev) can be an effective tool for helping young people who are far away from the labour market and the education system. Many of these young people have had negative school experiences, leaving them unmotivated to return to traditional schooling. At the same time, the labour market increasingly demands formal qualifications, creating barriers for those without education or work experience.
Vocational education programs leading to a trade certificate offer a solution that combines theoretical knowledge with practical experience. The most common structure, the 2+2 model, consists of two years of schooling followed by two years of apprenticeship (Fløe et al., 2019; Tønder & Aspøy, 2017). However, alternative models are available to accommodate different needs and life situations, making them particularly relevant for young people facing complex challenges, such as:
  • 0+4 Model: Four years of apprenticeship without schooling, leading to a trade certificate.
  • 1+3 Model: One year of schooling followed by three years of apprenticeship, leading to a trade certificate.
  • 3-Year Model: Three years of schooling with partially integrated apprenticeships, resulting in vocational competence without a trade certificate.
A common feature of these various models is the final vocational test that ensures that the candidate has achieved the right skills in the vocational subject.

This deep dive is based on three different data sources

  • Own calculations using data from European Labour Force Survey and EU-SILC. The calculations are based on definitions and methods used in Højbjerre et al. (2022) og (2023b.)
  • Literature from the reviews presented in Højbjerre et al. (2023a) og (2024) supplemented with some few extra references.
  • Interviews with a total of 44 caseworkers in various parts of the Nordic countries’ public employment services conducted for Højbjerre et al. (2024). These interviews aimed at uncovering the practical knowledge and experiences among the caseworkers concerning the effectiveness of the different types of employment instruments on which the literature review focusses

Literature

Albæk, K., Bach, H.B. & Jensen, S. (2012). Effekter af mentorstøtte for udsatte ledige en litteraturoversigt. København: SFI – Det Nationale Forskningscenter for Velfærd 12:21
Albæk, K., Bach, H.B., Bille, R. & Graversen, B.K. (2015). Evaluering af mentorordningen. København: SFI – Det Nationale Forskningscenter for Velfærd 15:10
Almqvist, A. L., & Lassinantti, K. (2018). Young people with complex needs meet complex organizations: an interview study with Swedish professionals about sustainable work practices. Community, Work & Family, 21(5), 620–635. https://doi.org/10.1080/13668803.2018.1527758
Andersen, S. H. (2017) Disconnected youth: Past, present & future. Rockwool Foundation Research Unit, Study Paper 116. Copenhagen.
Bolvig, I., Jeppesen, T., Kleif, H.B., Østergaard, J., Iversen, A., Broch-Lips, N., Jensen, N.L. & Thodsen, J. (2019). Unge uden job og uddannelse – hvor mange, hvorfra, hvorhen og hvorfor? En kortlægning af de udsatte unge i NEET-gruppen. København: VIVE – Det Nationale Forsknings- og Analysecenter for Velfærd.
European Union of Supported Employment (2024): Toolkit, https://euse.org/about-se/supported-employment-toolkit/ (set den 30. Juni 2024)
Fløe, A., Büchler, J. M., Thygesen, S. F., Kock, S. & Grønbek, T. (2019). Bagom de norske ungdomsuddannelser. København: Tænketanken DEA. https://www.datocms-assets.com/22590/1586160238-notatbagomdenorskeungdomsuddannelser.pdf
Fogelgren, M., Ornst  ein, P., Rödin, M., & Thoursie, P. S. (2023). Is Supported Employment Effective for Young Adults with Disability Pension?: Evidence from a Swedish Randomized Evaluation. Journal of Human Resources, 58(2), 452–487.
Frøyland, K., Alecu, A.I, Ballo, J.G., Leseth, A. & Sadeghi, T.  (2022): Inkludering av unge i skole, arbeid og samfunn – en sammenstilling av kunnskap fra nordisk forskning. Oslo: Work Research Institute (AFI), OsloMet – Oslo Metropolitan University.  
Görlich, A. (2016): Uden uddannelse og arbejde. Unges tilblivelser i komplekse transitioner. Aalborg, Aalborg University Press
Hall, C., Hardoy, I. & Simson, K. V. (2022). Policies for young adults with reduced work capacity. IFAU – Institute for evalution of labour market and education policy.
Højberre, A., Nielsen, S. Jakobsen, V. , Thuesen, F. & Thomsen, R.L. (2022): Labour market attachment in the Nordic countries. https://pub.norden.org/temanord2023-501/
Højbjerre, A., Jakobsen, V., Thuesen, F., Thomsen, R., & Stubkjær, L. (2023a). Barriers to employment for vulnerable groups in the Nordic countries. https://pub.norden.org/temanord2023-513/
Højbjerre, A., Jakobsen, V., Thuesen, F., Thomsen, R., & Stubkjær, L. (2023b). A multitude of barriers: Analysing components in joblessness to inform policy in the Nordic countries. https://pub.norden.org/temanord2023-538/
Højbjerre, A., Jakobsen, V., Thuesen, F, Rosenberg, A.W., Thomsen, R.L. & Stubkjær, L (2024): What works and for whom? An overview of employment instruments among vulnerable groups in the Nordics. https://pub.norden.org/temanord2024-546/
Katznelson, N., Joergensen, H.E,D.  &  Sørensen, N.U. (2015): Hvem er de unge på kanten af det danske samfund?: Om hverdagsliv, ungdomskultur og indsatser der gør en positiv forskel. Aalborg Universitetsforlag.
Kleif, H.B. 2021. The temporality of being NEET: A longitudinal study of NEET occurrences among young adults in Denmark. Young, 29(3) 217–235.
Mascherini, M. 2018. Origin and future of the concept of NEETs in the European policy agenda. In: J. O’Reilly, J. Leschke, R. Ortlieb, M. Seeleib-Kaiser & P. Villa. Youth labor in transition: inequalities, mobility, and policies in Europe. Oxford University Press.
Rosenberg, A., Rasmussen, A. L., Andersen, L. S. & Holt, H. (2024). Årsager til stigning i antallet af unge førtidspensionister. København: VIVE
Stea, T.H., Bertelsen, T.B., Fegran, L., Sejersted, E., Kleppang, A.L. & Fyhn, T. (2024): Interventions targeting young people not in employment, education or training (NEET) for increased likelihood of return to school or employment—A systematic review. Plos One, June 24, https://doi.org/10.1371/journal.pone.0306285
Sveinsdottir, V., Lie, S. A., Bond, G. R., Eriksen, H. R., Tveito, T. H., Grasdal, A. L., & Reme, S. E. (2020). Individual placement and support for young adults at risk of early work disability (the SEED trial). A randomized controlled trial. Scandinavian journal of work, environment & health, 46(1), 50–59. https://doi.org/10.5271/sjweh.3837
Tønder, A. H. & Aspøy, T. M. (2017). When Work Comes First: Young Adults in Vocational Education and Training in Norway. International Journal for Research in Vocational Education and Training. Vol. 4, Iss. 3, pp. 270–288. https://doi.org/10.13152/IJRVET.4.3.5
Nordic Council of Ministers I www.norden.org/publications I pub@norden.org