The Netherlands comparison
Case study exploring what works in reducing NEET rates by comparing the Netherlands to the UK
The Netherlands has the lowest rate of people not in education, employment or training in the OECD. The rate has remained steadily under 5% since 2015, with the most recent data from 2024 showing a NEET rate of 3.6%. This equates to 1 in 20 young people. In comparison, 1 in 8 young people are NEET in the UK.
This case study offers a ook at how the country has successfully reduced and maintained low NEET rates to understand key principles and potential lessons to apply to a UK context to tackle the youth employment challenge.
The Dutch system is characterised by robust institutional structures that promote coordination and collaboration across levels of government, the education sector, and the employment sector, while allowing flexibility in implementation. In contrast, UK efforts often rely on specific programmes that may lack systematic integration.
Wage subsidies and other demand-side employment incentives are key components of the Dutch approach. Active labour market programmes, including wage subsidy schemes, are underpinned by strong employer engagement. This ensures that employers are actively involved in shaping the support measures but are also incentivised to participate.
While caution should always be exercised on directly ‘importing’ public policy from a different country, there are valuable lessons for UK policy makers from the Netherlands:
Youth employment policy in the Netherlands works through a framework of interventions at the national, regional, and local level. Robust institutional structures, through its 35 labour market regions, facilitate consistent national strategic direction while enabling flexibility of implementation at a local level.
Policies addressing NEET status in the Netherlands comprise a wraparound package of integrated interventions operating across government levels. To enhance young people’s transition into the labour market, these policies integrate:
In the Netherlands, this is institutionalised through the Foundation for Cooperation on Vocational Education, Training and Labour Market, which ensures sustained collaboration between employers and vocational education providers. Active participation of employers is vital in the success of interventions to targeting NEET young people.
The case study selection and methodology followed a structured, evidence-driven process. Countries were chosen based on a combination of quantitative criteria and policy relevance drawn from data analysis and a rapid evidence assessment.
For further information explore the in-depth case study techncial note and full research report.