What can the Netherlands teach the UK about how to solve its youth jobs crisis? | young people

A shocking government-backed report this week warned of the risk of a “lost generation” of young people in Britain, as the number of 16-24 year olds (NEETs) not in education, employment or training rose to more than one million.

According to official statistics in the UK, approximately 13.5% of young people are not working or attending university. Among those aged 18 to 24, the proportion rose to 15.8%, or almost one in six.

In the Netherlands, the equivalent figure has been less than 5% for more than a decade. Last year, the Dutch NEET rate was 5.3%, according to Eurostat, which produces higher figures for the 15-29 age group.

The Resolution Foundation concluded in a recent report that if the UK could match the Netherlands’ NEET ratio, 600,000 more 18- to 24-year-olds would currently be studying or earning money.

Alan Milburn, a former Labor cabinet minister who wrote the review, said Britain may not be able to directly copy the Netherlands because of their different traditions, cultures and structures. “But boy, boy, there is something to be learned,” he added.

A recent comparative study by independent think tanks, including the Resolution Foundation and the Youth Futures Foundation, found that the Netherlands’ NEET rate – the lowest among EU and OECD countries – is the result of decades of policy-making.

Students in Maastricht. Photo: Alami

The Dutch approach revolves around three pillars: vocational training, a welfare safety net that prioritizes participation and rehabilitation, and financial incentives to make it worthwhile for businesses to hire young workers.

Researchers say maintaining education is important. By 2024, 43% of 18-24 year olds in the UK are in education, compared to 67% in the Netherlands. Among 18-year-olds, the figures are 66% and 80%. By the age of 24, twice as many young people are in education in the Netherlands (43%) than in the UK (21%).

The type of training may be more important. Technical education is very highly regarded in the Netherlands. Secondary vocational education (MBO) is a major provider of the Dutch labor market and is often called the “foundation of the economy.”

Almost 70% of students aged 16-19 in higher secondary education in the Netherlands attend MBO schools, and 35% of students under 25 later study at technical or vocational universities. In the UK in 2024, only 22% of 18-21 year olds have completed a vocational course.

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Robbert Dijkgraaf, a former Dutch education minister and professor of science and society at the University of Amsterdam, said vocational education is very important to help people find their place in work and society.

“The knitting problem is also present in the Netherlands,” he said. “It is closely related to vocational training. We must give all forms of higher education equal importance to society and treat them equally.

“Vocational education not only helps prepare people for society and careers, but it is also a lifeboat,” he said. He added that the Dutch system of combining four days of work with one day of vocational training is very important.

Vocational schools work closely with employers, and one teacher who found work for a vulnerable student in a shoe repair shop added: “It’s very important for me to know that society sees my value. It’s very important for me to know that society needs me.”

Skilled and smart young people face a seller-driven market, Dijkgraaf said. But not everyone was like that. “I often joke that teaching is like finding the beginning of a piece of scotch tape. It’s very frustrating, but once you have a beginning, you can keep going.”

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Importantly, Dutch vocational education is always combined with work-based learning or apprenticeships. By the age of 19, more than half of Dutch young people have some work experience and the resulting contacts enable a flexible and smooth transition from school to the labor market. In the UK, less than one in five people have experienced this.

The second main driver of the Netherlands’ low NEET rate is the welfare state, the researchers said. The Labor and Social Assistance Act of 2004 essentially delegated welfare and social assistance programs to local governments.

This structural change shifted the focus from a centralized bureaucratic model to a personalized, localized system. The impact was particularly evident on issues such as mental health and long-term illness, the Resolution Foundation noted.

Like their British counterparts, Dutch young people report the highest rates of depression and anxiety in Europe. However, this did not lead to poor engagement outcomes.

Students at Utrecht University. Photo: Wim Wiskerke/Alamy

The researchers said that in the UK, young people claiming disability benefits can be left without real institutional contact or work-related expectations for months or even years. In the Netherlands, local councils provided tailored engagement programs including psychological help, employment subsidies and professional training.

Rotterdam City Council’s head of employment, Tim Versnel, said the city had recently responded to rising youth unemployment with more considerate strategies and intensive courses. The council works with well-known local employers and mentoring organizations to support chronically unemployed young people, particularly those who have grown up with domestic violence or mental health issues.

“Our approach has been primarily geared toward finding better ways to access education and the labor market,” Versnel said. “We shifted to a more caring approach, including mental resilience training, help with substance use, and financial literacy. Instead of specifically getting people trained and applying for jobs, we shifted to a more holistic approach.”

The Rotterdam local government also provides financing of up to 70% of wages to chronically unemployed young people. “Basically, when someone works, every aspect of their life improves: their mental stability, their mental health, their physical health, their self-esteem.”

Finally, the Dutch system recognizes that low NEET rates require willing employers. While British employers complain that entry-level workers are too expensive, the Netherlands has long used fiscal policy to subsidize youth employment.

The Youth Futures Foundation highlights government plans to cut payroll taxes and provide direct financial benefits to businesses that hire young workers.

People enjoying a spring day in Rotterdam’s old port. Photo: ANP/Shutterstock

For example, the “Premium Subsidy for Young Workers” was worth €3,500 (£3,000) per year to employers employing young people on contracts of at least 32 hours per week. Its successor, the “Labor Cost Advantage”, reduces wage costs through tax benefits of up to €6,000.

Of course, this costs money. In 2011, the most recent year for which UK data is available, the UK spent 0.5% of GDP on active labor market policies and 0.01% on employment incentives and employment subsidies. In the Netherlands it was 2.3% and 0.5%.

The important lesson from the Netherlands, the researchers say, is that low NEET rates cannot be achieved through piecemeal measures or ad-hoc subsidies and require key adjustments to education systems, welfare provision and business incentives.

“What is it fundamentally about?” Milburn said. “It’s about some structural issues. They prioritize vocational training and investment in it. The Dutch system is much more integrated and collaborative.

“And the final part that I think they’re right about, and where we’re wrong, is that employers are becoming much more involved in the education system from the beginning, so kids are becoming familiar with employers and the world of work.”

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