The Concept of NEETs and its Development Relevance
In 2020, the ILO reported that globally, 22.4% of individuals aged 15 to 24 could be identified as NEETs. Within this category, 67.5% were women. NEETs refer to young individuals not in education, employment, or training, generally aged 15 to 29. However, some countries may vary the age groups in their operational definitions, depending on the average age to finish school. The goal behind calculating NEETs is to capture the ‘untapped’ potential of the youth, as stated by the World Bank. It consists of unemployed youth who are actively seeking work, as well as those who are unemployed but not actively looking for work.
The latter category may have reasons such as limited labor mobility, discrimination, or other societal barriers. They might also view the available job opportunities as limited. Additionally, people may be involuntarily out of work due to family responsibilities, health issues, or disabilities. According to the World Bank, those who are a part of the NEET population are at a severe risk of labor market and social exclusion because they are neither investing in their skills nor gaining experience through employment. In addition to the youth unemployment rate, the NEET rate helps add essential context to the economic conditions of the youth within a particular country, as it also includes youth who may be economically inactive due to discouragement.
The Economic Cost of NEETs
While being a NEET has economic consequences for the individual’s life, it also has broader effects on the wider economy. In 2022, the OECD reported that the NEET rate for 20-24-year-old individuals in the United Kingdom was 12.47%, whereas in Germany, it was 8.88%. PwC analyzed the OECD data on NEET rates for their Youth Employment Index 2022. Their study found that if the UK managed to reduce its NEET rate to German levels, the economy could potentially see a GDP boost of £38 billion. Another study published in January 2024, conducted by Mariem Liouaeddine, evaluated the economic cost of NEETs in Morocco. The researcher concluded that in 2019, the total cost of young NEETs to Moroccan public finance was around 60 billion Moroccan Dirhams, equivalent to almost $6 billion today. According to a report by Morocco World News, the country had a NEET rate of 28.5% in 2021. You can also look at 17 European Countries with the Highest Unemployment Rates.
The COVID-19 Impact
In 2022, the ILO published a report on the youth NEETs in the Asia-Pacific region. Before COVID-19, the area had 155 million NEETs in the age bracket of 15 to 24. Between 2010 and 2019, the average youth NEET rate in the region was 23.6%, but there was significant variation between the sub-regions. For example, South Asia had the highest rate at 29.2%, and the Pacific Islands had the lowest at 16.2%. Out of the total NEETs, 72% were women. However, the situation worsened when the COVID-19 crisis struck. The pandemic pushed an additional 9.5 million youth into NEET status, bringing the total NEET count in the region to 165 million. Of these 9.5 million individuals, 7.5 million were young men. However, women still made up 69% of the total NEET count.
Furthermore, 7 million of the total were South Asian, but overall, all regions in the Asia-Pacific saw an increase in NEET numbers. Most of the new NEETs were inactive individuals who stopped actively looking for jobs as the labor market began worsening due to the lockdowns. You can also view the 15 States With the Worst Unemployment Benefits in 2024.
NEETs Vs. Hikikomori
In 2018, O'Reilly et al. published a book covering the origins of the concept of NEETs in European policymaking. According to the author’s research, the idea originated in the United Kingdom during the 1980s and was formally adopted by the European Commission Employment Committee in 2010 with an agreed-upon definition and methodology. However, as the idea spread to other developed countries in the 1990s, the indicator changed to attach a level of negative stigma. In Japan, the term ‘Hikikomori’ refers to young NEETs, often men, who live with their parents and spend all their time in isolation without engaging with other people or friends. The term itself means ‘withdrawal,’ referring to those living in complete social exclusion. Similar terms were also seen in Italy (Bamboccioni) and Germany (Nesthocker).
According to a CNN report from April 7, 2023, nearly 1.46 million individuals in Japan can be identified as Hikikomori. However, the difference in the calculation of this value is that it considers all individuals aged 15 to 64 rather than just being limited to the youth. One of the reasons behind that is Japan’s booming elderly population and declining birthrate. The term ‘8050’ problem refers to Hikikomori individuals in their 50s who rely on their parents in the 80s. The problem has risen enough that in 2018, the Ministry of Health, Labor, and Welfare established a Hikikomori support body to improve living conditions for these individuals.
South Korea is another country experiencing a similar effect. A BBC report from May 27, 2023, reported that between the ages of 19 and 39, 340,000 people could be identified as Hikikomori. This makes up around 3% of this age group. In order to bring these people out of their homes, the government is now offering monthly stipends. Young individuals between the ages of 9 and 24 can receive up to $490 a month (650,000 won), as well as subsidies for services such as health, legal services, cultural activities, and counseling. Through this policy, the government hopes these individuals can leave their homes and reintegrate into society. While not all NEETs fall into the Hikikomori category, almost all Hikikomori can be classified as NEETs as they do not participate in any economic activities.
Corporate Support
In order to aid the youth NEETs, private sector companies can provide massive support by offering training and employment opportunities specifically geared towards such individuals. In particular, ed-tech companies play a considerable role in skill building. A significant example of this is Coursera, Inc. (NYSE:COUR). The online platform offers courses from over 350 universities and companies, aimed at building all kinds of hard and soft skills. In its 2023 Learner Outcomes Report, Coursera, Inc. (NYSE:COUR) reported that 77% of learners mentioned learning from Coursera, Inc. (NYSE:COUR) helps their careers.
Furthermore, one in four people who completed an Entry-Level Professional Certificate were able to get a job. In developing countries, 91% of low-income learners reported career benefits of learning through the platform. The learning also offered personal benefits, with 62% of learners feeling more confident and 50% feeling they now had more growth opportunities. 30% of unemployed learners were employed after completing their most recent program or course on the platform. The survey covered over 55,000 learners from 190 countries.
Amazon.com, Inc. (NASDAQ:AMZN) is another company providing skills training to unemployed individuals. In October 2021, Connecticut Governor Ned Lamont announced a partnership with AWS, Amazon.com, Inc.’s (NASDAQ:AMZN) cloud services business. Under this venture, AWS collaborated with the Connecticut Office of Workforce Strategy and Connecticut State Colleges and Universities (CSCU) to train unemployed individuals in cloud computing. The partnership is expected to offer technical skills training to 2,000 Connecticut residents by 2024. Since then, all CSCU colleges and universities have provided courses and certificates that help students acquire these skills.
Previously, the AWS Academy by Amazon.com, Inc. (NASDAQ:AMZN) has showcased success in a similar program implemented by Staffordshire University in the UK. In 2019, the University partnered with AWS to provide six courses in cloud computing. In 2022, AWS reported that 93% of course participants were able to find employment within six months of graduating. You can also look at 25 Countries with the Lowest Unemployment Rates in the World.
Offerings by companies such as Amazon.com, Inc. (NASDAQ:AMZN) and Coursera, Inc. (NYSE:COUR) can help young individuals upskill themselves while also improving their career prospects. These courses can be highly convenient because many can be acquired remotely. In this context, here are 20 countries with the highest share of youth not in education, employment, or training, where the youth may benefit from such services.
20 Countries with the Highest Share of Youth Not in Education, Employment or Training (NEET)
20 Countries with the Highest Share of Youth Not in Education, Employment or Training (NEET)
Our Methodology
To compile this list, we have reviewed the ILO dataset on the proportion of youth (15-24 years) not in education, employment, or training. The countries are organized in ascending order of the percentage of youth NEETs. Further information for the countries has been sourced from the World Bank and ILO. Wherever tiebreaking was required, it was done on the basis of the latest reported year for the data. Based on this methodology, here are 20 countries with the highest share of youth not in education, employment, or training.
Notes:
‘Inactive’ students refer to those who are not actively seeking jobs.
For countries, especially the ones that had data older than 2015, we searched for government reports and media reports for the latest available statistics on youth NEETs.
20 Countries with the Highest Share of Youth Not in Education, Employment, or Training (NEET)
20. Lesotho
Share of Youth Not in Education, Employment, or Training (2019):35.2%
In Lesotho, people aged 15 to 35 make up 60% of the working-age population, which makes the high NEET rate quite concerning. According to the World Bank, 60% of the country’s youth fail to achieve their education aspiration, mainly due to poverty.
19. Papua New Guinea
Share of Youth Not in Education, Employment, or Training (2010):35.5%
In 2010, inactive non-students comprised 96.6% of the total NEET population. There were 437,739 such individuals, whereas the active non-students amounted to 15,456.
18. Iraq
Share of Youth Not in Education, Employment, or Training (2021): 36.9%
Iraq is one of the countries with the highest share of youth not in education, employment, or training. In 2021, 36.9% of individuals aged 15-24 were involved in neither education or training, nor employment.
17. Chad
Share of Youth Not in Education, Employment, or Training (2018): 37%
Chad ranks 17th on our list of countries with the highest share of youth NEETs. In 2018, Chad had a youth NEET rate of 37%.
16. Botswana
Share of Youth Not in Education, Employment, or Training (2022): 37%
According to data by UN Women, Botswana has a high school completion rate but very few employment opportunities. Of all the 15-19 year olds who complete schooling, only 5% are employed.
15. Venezuela
Share of Youth Not in Education, Employment, or Training (2020): 37.1%
Venezuela is one of the countries with the highest share of youth not in education, employment, or training. In 2020, around 37.1% of the youth population was not engaged in any educational or employment activities.
14. Gambia
Share of Youth Not in Education, Employment, or Training (2023): 39.8%
60% of Gambia’s population is under the age of twenty-five, which makes a high NEET rate quite concerning. Other than issues of poverty and lack of employment opportunities, child marriage is one of the reasons for female NEETs.
13. Marshall Islands
Share of Youth Not in Education, Employment, or Training (2021): 40%
In 2021, 40% of the youth population in the Marshall Islands was neither working nor studying. This is why the Islands rank 13th on our list of countries with the highest share of youth not in education, employment, or training.
12. Liberia
Share of Youth Not in Education, Employment, or Training (2017): 40.8%
Liberia ranks 12th on our list of countries with the highest share of youth NEETs. In 2017, 40.8% of the country’s youth aged 15-24 were not working, studying, or upskilling.
11. Burkina Faso
Share of Youth Not in Education, Employment, or Training (2018): 41%
Burkina Faso is a West African country that ranks 11th on our list of countries with the highest share of youth not in education, employment, or training. In 2018, the NEET rate in the country was 41%.
10. Nauru
Share of Youth Not in Education, Employment, or Training (2021): 41%
According to the ILO, the gender gap in the youth NEET rates in Nauru is almost 29 percentage points, which showcases considerable gender discrimination between young men and women.
9. Tajikistan
Share of Youth Not in Education, Employment, or Training (2009):42.2%
The ILO reported a NEET rate of 42.2% for Tajikistan in 2009. However, according to a UNICEF report, the rate had fallen to 30% by 2016. This means that in 2016, the country had 504,799 youth out of education and employment. Furthermore, the NEET rate for women is nine times higher than men.
8. Somalia
Share of Youth Not in Education, Employment, or Training (2019): 43.7%
Somalia ranks 8th on our list of countries with the highest share of youth NEETs. In 2019, 43.7% of the country’s youth were not working, studying, or receiving training.
7. Afghanistan
Share of Youth Not in Education, Employment, or Training (2021): 43.7%
According to the ILO, Afghanistan had the highest gender gap in NEET rates in the Asia-Pacific region. There was a difference of 49 percentage points between the youth NEET rate for men and women.
6. Mauritania
Share of Youth Not in Education, Employment, or Training (2019): 44.1%
Mauritania ranks sixth on our list of countries with the highest share of youth not in education, employment, or training. In 2019, the country had a youth NEET rate of 44.1%.
