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Democracy that delivers: What can Europe do to resolve its NEET conundrum?

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Europeans’ attitude towards Europe’s fundamental values of the rule of law ultimately depends on the EU’s capacity to deliver for its citizens. Until the global financial crisis, the capacity of EU democracy to deliver has been unparalleled globally through its transformative effects on peace and prosperity in Europe. Yet, now the EU is under attack on multiple fronts, with Russia’s invasion in Ukraine posing an existential threat to Europe’s fundamental values.

There is no bigger test to the capacity of EU’s democracy to deliver than its promise to the future of its young people. Over the last couple of years, there have been positive trends in the global labor market for young people. However, significant challenges with youth unemployment remain around the world. The fate of the so-called NEETs, a group of youth not working, studying or participating in any form of training, is critical to the EU’s performance evaluation. Globally, one in every five young people are in the NEET category and every two out of three NEETs around the world are female.

The EU has been trying to adjust to the new realities of a rapidly changing global economy. In her mission letter to the Executive Vice-President-designate for People, Skills and Preparedness, EU Commission President Ursula von der Leyen emphasizes the importance of guiding and supporting young people in Europe in the effort to strengthen Europe’s human capital. Ensuring that young people’s voice is heard is a crucial aspect of the new EU Commission agenda (2024-2029). With one-tenth (11.2 percent) of the EU youth between 15-29 being NEETs, the Commission has set an ambition to bring this rate down to 9 percent by 2030.

In the majority of EU member states and in the EU as a whole, there is a special age sub-group which typically has a higher rate of NEETs compared to other sub-groups – that of 25-29 years (the so-called 25+ NEETs). CSD has been researching the challenges of NEETs (25+NEETs included) and taken part in policy dialogue in an effort to propose solutions for the improvement of their situation, in Bulgaria and across the EU, which the new EU Commission should strive to adopt.

The Complex Landscape of the 25+ NEETs

The 25+ NEETs across Europe are not a monolithic group. They include young parents, ethnic minorities, migrants, people with disabilities, and residents of rural areas with limited access to education and employment opportunities. The diversity within this demographic means that their challenges are varied, requiring tailored policy interventions that go beyond general solutions.

For instance, in some Eastern European countries (such as the Czech Republic, Bulgaria, Romania), traditional gender roles contribute to higher NEET rates among women of this age, particularly mothers or caretakers. These women often face difficulties re-entering the workforce due to inadequate childcare support and inflexible working conditions. Similarly, ethnic minorities and migrants, especially in countries like Greece and Malta, encounter barriers such as language difficulties, discrimination, and complex legal status issues, which further complicate their ability to find stable employment.

In rural areas across Europe (e.g., in Romania, Bulgaria, Hungary), young adults face a different set of challenges. These regions, despite being in the EU, often still lack the infrastructure and economic opportunities that are more readily available in urban centers. As a result, 25+ NEETs in these areas may remain isolated from the labor market, unable to access the training and employment opportunities that could help them build a sustainable future.

Current Policy Approaches: Where Are We Falling Short?

The policy responses to date can be made more effective. One of the key issues is the tendency to apply a one-size-fits-all approach to a highly diverse group. This has resulted in policies that are too broad to address the specific needs of different NEET sub-groups effectively.

Additionally, local and national governments rely significantly on relatively short-term funding to address NEET-related issues. While EU funds have been instrumental in supporting various initiatives, this dependence on external funding has, in some cases, allowed national governments to avoid making long-term commitments to solving the problem. Without sustained national investment and a clear strategic vision, these initiatives will hardly produce lasting results.

Another critical issue is the insufficiently robust monitoring and evaluation mechanisms of policy interventions. Without a clear understanding of what works and what does not, it is difficult for policymakers to make informed decisions about how to best allocate resources and design interventions.

Moving Toward More Effective Policy Solutions

To effectively address the challenges faced by the 25+ NEETs, European and national policymakers need to rethink their approach. The following strategies can help create a more effective policy framework nationally and EU-wide, and can serve as a blueprint for the new EU Commission:

  • Policies must be designed to address the specific challenges faced by the different subgroups across member states. For example, targeted support for young parents, such as access to affordable childcare and flexible work arrangements, can help women reenter the workforce. For ethnic minorities and migrants, interventions should focus on removing barriers to education and employment, such as language training and anti-discrimination measures. In rural areas, investment in infrastructure and digital connectivity is crucial to create new opportunities for employment and training.
  • Effective policymaking requires collaboration between various stakeholders, including local and national governments, NGOs, educational institutions, and the private sector. This includes creating pathways that connect education and training with labor market needs, as well as providing ongoing support to help NEETs transition into stable and decent employment.
  • It is essential for national governments to make long-term financial commitments to solving issues of NEETs. This means integrating NEET-related policies into broader national economic and social strategies, ensuring that these initiatives are sustainable and can adapt to changing circumstances. National investment should focus on creating resilient systems that can support NEETs through various stages of their lives, from education to employment and beyond.
  • To ensure that policies are effective, it is crucial to implement robust data-driven monitoring and evaluation frameworks. This information can then be used to refine and adjust policies over time, ensuring that resources are allocated where they will have the most significant impact.
  • To address the disconnect between education systems and the labor market needs, it is essential to create stronger links between educational institutions and employers. This could involve expanding vocational training programs, promoting apprenticeships, and encouraging lifelong learning initiatives. By providing NEETs with the skills and knowledge required in today’s job market, these programs can help them find meaningful and sustainable employment.

A New Path Forward

The NEET problem, particularly among the 25-29 demographic, presents an important challenge for Europe’s future. However, it also offers an opportunity for policymakers to rethink how they address social and economic issues. Ultimately, addressing the NEET situation is not just about helping a vulnerable group; it is about ensuring the long-term prosperity and social cohesion of Europe as a whole, and preventing economic and labor market rifts with long-term consequences for the socio-political stability of the continent. By investing in the potential of its young citizens, Europe can build a future in which young people have a place and know their voice counts. This will also reinstate citizens’ belief in the EU’s transformation potential in Europe and globally.


 

Find out more about CSD’s work on the topic in the following publications:

Bogdanova, V., Yakova, L., Terziev, P., and Tsabala, K., ‘Analysis of the Policy Context Addressing 25+ NEETs: Country Report – Bulgaria’, Center for the Study of Democracy, 2022.

Politov, A. and Yakova, L., ‘Impacts of the COVID-19 crisis on 25+NEETs: Country report –Bulgaria’, Center for the Study of Democracy, 2023.

Bogdanova, V., Orejarena, G. R., and Yakova, L., ‘Employment initiatives supporting 25+NEETs: Country report – Bulgaria’, Center for the Study of Democracy, 2022.

Bogdanova, V., Yakova, L., and Orejarena, G. R., ‘Evaluation practices assessing the impacts of initiatives targeting 25+NEETs: Country report  Bulgaria’, Center for the Study of Democracy, 2022.

 

This blog is based on findings from research conducted by CSD as part of the ‘Lost Millennials – Transnational Research Network for the Evalution of Initiatives Targeting 25 + NEETs’ project funded by Iceland, Liechtenstein and Norway through the EEA and Norway Grants Fund for Youth Employment.

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