Improving young adults' entry into the labour market is a critical concern for European countries. As new research I have conducted for the MapIneq project – together with Heike Solga and Jan Paul Heisig - reveals, this transition has far-reaching implications for career success, family life and well-being.
The findings underscore that young adults' risks of unemployment and being 'not in employment, education, or training' (NEET) vary significantly across Europe. Countries like Luxembourg and Malta are examples of success, whereas Bulgaria, Italy and Greece continue to face major challenges. Regional disparities are striking, particularly in Southern Europe, where regions within Italy, Spain, and Portugal differ widely in labour market integration.
Key factors affecting these transitions include educational attainment, health, and family dynamics. For instance, young adults in poor health have, on average, an over 30% higher probability of being NEET compared to their very healthy counterparts, emphasising the need for robust health policies targeting youth. Meanwhile, living arrangements such as staying with parents or being a single parent also elevate risks.
The research further shows that high employment rates are not achieved at the cost of job quality. For example, Switzerland and Luxembourg balance high employment with superior occupational status, whereas countries such as Bulgaria and Serbia not only exhibit low employment rates but also low-quality job placements. This variation highlights the vital role of education, as tertiary qualifications can elevate occupational outcomes by almost 30 points compared to young adults who have not completed upper secondary education.
Income disparities mirror these trends. High-status jobs are linked to higher disposable incomes, while unemployment often leads to poverty. Regional inequalities are pronounced, particularly in Italy and Spain, underscoring the impact of within-country variations in educational and economic conditions.
Interestingly, life satisfaction among young adults doesn’t always match economic indicators. For example, Romanians report high life satisfaction despite facing low job quality and income security. Health is the standout determinant of happiness, suggesting that policies to support youth well-being must go beyond employment and income.
Policy Pathways for Transformative Change
To propel young adults towards successful school-to-work transitions, European policymakers should seek to implement a comprehensive set of initiatives that not only open doors to employment but foster lasting socio-economic resilience. The key? Tackling challenges from multiple angles to maximise impact.
- Invest in Health Services for Young Adults: Recognise health as a key factor for labour market integration by increasing access to preventive and mental health services. Include more compulsory health check-ups during high-school years and improve health literacy in schools.
- Invest in the Creation of Quality Jobs: Create sustainable, quality employment, for example by attracting larger firms, to reduce unemployment and underemployment among young adults.
- Promote Access to High-Quality Employment: Improve pathways to high-status occupations through targeted educational programs, internships, and apprenticeships. Invest in lifelong learning opportunities and continuous skills development to support young adults facing challenges in entering the labour market.
- Support Educational Attainment for Regional Equality: Prioritise education investments in underserved regions to equalise opportunities. Introduce or expand vocational training programs in rural regions, where occupational attainment tends to be lower.
- Enhance Economic Independence through Affordable Housing: Implement policies that reduce housing costs and support economic independence among young adults.
- Strengthen Work-Life Balance with Family Support: Provide accessible and affordable childcare services, especially for single parents.
- Reduce poverty: Implement direct poverty reduction strategies, such as income support programs or housing subsidies, among young adults (especially single parents) to break the cycle of poverty and its negative spillover effects on children's cognitive development and educational outcomes.
Acknowledgements:
This publication is part of the Mapineq project, which has received funding from the European Union’s Horizon Europe research and innovation programme under the grant agreement No. 101061645 (www.mapineq.eu). Views and opinions expressed are however those of the authors only and do not necessarily reflect those of the European Union or the European Research Executive Agency (REA). Neither the European Union nor the granting authority can be held responsible for them.
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