CLUSTERING ANALYSIS OF THE YOUTH GUARANTEE PROGRAM: INSIGHTS INTO NEET REDUCTION ACROSS EU MEMBER STATES

This study investigates the changes in the labour market conditions and youth disengagement in a selection of 34 European countries from 2014 to 2023. The period under examination is very interesting because it starts in the year when most European Union countries introduced the Youth Guarantee (YG), that is a set of active labour market measures finalized to stimulate young NEETs (Young people Not in Employment, Education, or Training) to enter into the labour market. More in particular, through cluster analysis, we identified two different sets of clusters, one for youth disengagement and the other for the general labour market conditions. Results show great disparities across European countries for youth engagement levels, labour market conditions, and different dynamics over time. However, some countries show strong improvement across time in terms of youth engagement, while others, even among the richest ones, experienced an increase in poverty rate. The study offers policy recommendations tailored to each cluster to strengthen YG’s capacity to support youth inclusion in education and employment.