A government-backed report released this week warned that Britain risks creating a “lost generation” of young people, as the number of 16- to 24-year-olds not in education, employment, or training (known as Neets) has risen to over 1 million.
According to official UK statistics, about 13.5% of young people are not working or studying. For 18- to 24-year-olds, that figure climbs to 15.8% – nearly one in six.
In the Netherlands, the equivalent rate has stayed below 5% for well over a decade. Eurostat, which uses a broader 15–29 age range and therefore reports a higher figure, found the Dutch Neet rate was 5.3% last year.
The Resolution Foundation concluded in a recent report that if the UK could match the Dutch Neet rate, 600,000 more 18- to 24-year-olds would currently be learning or earning.
Alan Milburn, the former Labour cabinet minister who led the review, said Britain might not be able to copy the Netherlands directly because traditions, cultures, and structures are different. “But boy oh boy is there something to learn,” he added.
Recent comparative studies by independent think tanks, including the Resolution Foundation and the Youth Futures Foundation, suggest that the Netherlands’ Neet rate – the lowest in the EU and among OECD countries – is the result of decades of deliberate policymaking.
The Dutch approach is built on three main pillars: vocational education, a welfare safety net that focuses on engagement and rehabilitation, and financial incentives that make it worthwhile for businesses to hire young workers.
Keeping young people in education is critical, researchers say. In the UK in 2024, 43% of 18- to 24-year-olds were in education, compared with 67% in the Netherlands. Among 18-year-olds, the figures are 66% and 80%. By age 24, twice as many young people are in education in the Netherlands (43%) as in the UK (21%).
The type of education may matter even more. Technical education is highly valued in the Netherlands: vocational secondary education (MBO) is the main source of workers for the Dutch labour market and is often called “the foundation of the economy.”
Nearly 70% of Dutch 16- to 19-year-olds in upper secondary education attend an MBO school, and 35% of under-25s later study at technical or professional universities. In the UK, only 22% of 18- to 21-year-olds were on vocational courses in 2024.
Robbert Dijkgraaf, a former Dutch education minister and professor of science and society at the University of Amsterdam, said vocational education is crucial for helping people find their place in work and society.
“The Neet issue is also there in the Netherlands,” he said. “It is closely related to vocational training. We should see all forms of tertiary education as equally important to society, and we should treat them equally.”
“Vocational education is not just a way to prepare people for society and work – it’s often also a lifeboat,” he added, noting that the Dutch system, which combines four days of work with one day of vocational training, is essential.
Vocational schools work closely with employers, he said. He recalled a teacher who had found a vulnerable student a job in a shoe repair shop. The student told him: “It’s so important for me to know that society sees the value of me. That there’s a need for me in society.”
Young people who are “skilled and smart” are in a seller’s market, Dijkgraaf said. But that’s not true for everyone. “I often joke that education is like finding the beginning of a roll of Scotch tape – very frustrating, but once you have a start, you can keep going.”
Crucially, Dutch vocational education always includes work-based learning or apprenticeships. By age 19, more than half of young Dutch people have workplace experience and therefore contacts, which makes the transition from school to the labour market smoother and more supportive. In the UK, fewer than one in five have this experience.
The second major driver of theResearchers said the Netherlands’ low NEET rate (young people not in education, employment, or training) was due to its welfare state. The 2004 Work and Social Assistance Act shifted welfare and social assistance programs from central government to local municipalities. This structural change moved the focus from a centralized bureaucratic model to a more personalized, local system. The Resolution Foundation noted that this had a clear impact on issues like mental health and long-term illness.
Like young people in the UK, Dutch youth report some of the highest rates of depression and anxiety in Europe. However, this hasn’t led to poor participation in work or education. In the UK, researchers said young people claiming incapacity benefits could go months or even years without real institutional contact or work-related expectations. In the Netherlands, local councils offered tailored engagement programs that included psychological support, subsidized jobs, and specialized training.
Tim Versnel, head of employment at Rotterdam city council, said the city responded to a recent rise in youth unemployment with a more caring approach and intensive courses. The council works with well-known local employers and a mentoring organization to support chronically unemployed young people, many of whom grew up with domestic violence or mental health issues.
“Our approach used to focus mainly on education and finding better ways into the labor market,” Versnel said. “We’ve shifted to a more caring approach: mental resilience training, help with substance use, and financial literacy. It’s a more whole-of-life approach, rather than just job training and applying for vacancies.”
The Rotterdam local government also covers up to 70% of wages for chronically unemployed young people. “Basically, all aspects of life improve when someone works: mental stability, mental health, physical health, and self-esteem,” Versnel added.
Finally, the Dutch system recognizes that a low NEET rate requires willing employers. While in the UK employers complain that entry-level workers are too expensive, the Netherlands has long used fiscal policy to effectively subsidize youth employment. The Youth Futures Foundation highlights government schemes that have cut payroll taxes and given direct financial benefits to businesses that hire young workers.
For example, the “premium subsidy for young workers” was worth €3,500 (£3,000) a year to employers hiring a young person on a contract of at least 32 hours a week. Its successor, the “labour cost advantage,” reduces wage costs through tax benefits of up to €6,000.
This costs money, of course. In 2011, the latest year for which UK data is available, Britain spent 0.5% of its GDP on active labor market policies and 0.01% on hiring incentives and employment subsidies. In the Netherlands, those figures were 2.3% and 0.5%, respectively.
Researchers said the key lessons from the Netherlands were that a low NEET rate wouldn’t be achieved through piecemeal measures or temporary grants. Instead, it required a core alignment of the education system, welfare provision, and business incentives.
“What is it fundamentally about?” Milburn said. “It’s about some structural things: they make vocational education and investment in it a priority. The Dutch system is much more integrated—they pull things together.”
“And the final part they seem to get right, that we get wrong, is that employers are much more engaged from the start with the education system. So kids get familiar with employers and the world of work.”
Frequently Asked Questions
Here is a list of FAQs about what the UK can learn from the Netherlands regarding youth unemployment
BeginnerLevel Questions
1 How bad is youth unemployment in the UK compared to the Netherlands
The UKs youth unemployment rate is currently significantly higher than the Netherlands The Dutch have one of the lowest rates in Europe
2 What is the main reason the Netherlands has such low youth unemployment
The biggest reason is their dual education system It combines classroom learning with real paid apprenticeships at companies Young people gain qualifications and work experience at the same time
3 Is the Dutch system just about more apprenticeships
Not exactly Its about better apprenticeships In the Netherlands apprenticeships are a standard respected career pathnot a second choice They are designed with input from employers ensuring the skills taught are actually needed
4 What is a MBO and why is it important
MBO stands for Middelbaar Beroepsonderwijs Its the Dutch version of vocational training Its highly valued and directly linked to jobs About 40 of Dutch students choose this path and most find work quickly
5 Does the Dutch government spend more money on this than the UK
Yes generally The Netherlands invests heavily in vocational education and active labour market policies They fund training provide wage subsidies for young workers and pay for career guidance counsellors
Intermediate Advanced Questions
6 How do Dutch employers get involved in solving youth unemployment
Its a partnership Employers help design the curriculum for apprenticeships They provide mentorship and guaranteed work placements In return they get a pipeline of skilled motivated workers who are ready to go There are also tax breaks for hiring young people
7 What is a startkwalificatie and why does it matter
A startkwalificatie is a basic qualification Its the minimum level needed to have a real chance in the job market The Dutch system is designed to ensure nearly every young person achieves this preventing the no skills no job trap
