Employment: the good and the bad for young people – fewer unemployed, but greater job insecurity

2/6Current Affairs

Youth unemployment and NEET figures are improving

 (Adobe Stock)

The first figure that stands out is that, compared with 2019, the most marked improvement concerns the unemployment rate and the NEET rate (young people not in education, employment or training). For 15–24-year-olds, the unemployment rate has fallen from around 29 per cent in 2019 to 20.6 per cent in 2025. The NEET rate for 15–29-year-olds fell even more rapidly: from 25.7 per cent in 2015 to 13.3 per cent in 2025, the largest reduction recorded in the EU over the decade. However, youth labour market participation remains weak: the recovery has not led to a full recovery in the supply of youth labour. Indeed, despite the progress made, Italia continues to perform below the European average, including a high number of NEETs and a ratio of almost four unemployed young people for every unemployed adult (aged 25 and over). There is also the issue of under-utilisation of the youth labour force. Participation remains low and many young people without work are not counted as unemployed (i.e. among those actively seeking employment but not yet finding it). In 2025, only 35 per cent of NEETs were unemployed, whilst 65 per cent were economically inactive; around one-third of the total number of economically inactive people belonged to the potential labour force. Specific policies are therefore needed to reach young people with a weaker link to the labour market, including those who are currently excluded from it.

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