What can the Dutch teach the UK about how to tackle the youth jobs crisis?

A government-backed report has issued a stark warning regarding a potential “lost generation” of young people in Britain. The number of 16- to 24-year-olds not in education, employment, or training—known as Neets—has climbed to more than 1 million.

Official UK statistics indicate that approximately 13.5% of young people fall into this category. For those aged 18 to 24, the figure rises to 15.8%, meaning nearly one in six young adults is currently disconnected from work or college.

The Dutch Contrast

In contrast, the Netherlands has maintained a Neet rate below 5% for more than a decade. According to Eurostat, the Dutch rate was 5.3% last year within a wider 15-29 age bracket.

The Resolution Foundation suggests that if Britain could match the Dutch rate, an additional 600,000 young people aged 18 to 24 would be learning or earning today.

Did You Know? The 2004 Work and Social Assistance Act in the Netherlands radically devolved welfare and social assistance programmes from a centralised bureaucratic model to local municipalities.

Three Pillars of Success

Research from the Resolution Foundation and the Youth Futures Foundation indicates that the Dutch success is built on three core pillars: vocational education, a localized welfare safety net, and financial incentives for businesses.

Vocational secondary education, known as MBO, is described as the “foundation of the economy” in the Netherlands. Nearly 70% of Dutch 16- to 19-year-olds in upper secondary education attend an MBO school.

In the UK, only 22% of 18- to 21-year-olds were enrolled in vocational courses in 2024. By age 24, twice as many young people in the Netherlands remain in education (43%) compared to the UK (21%).

“Vocational education is not only there as a vessel for people to prepare them for society, for work – it’s often also a lifeboat,” said Robbert Dijkgraaf, a former Dutch education minister.

Localized Welfare and Business Incentives

The Dutch approach to welfare focuses on personalized engagement. In Rotterdam, city council head of employment Tim Versnel explains that the city has shifted to a “whole-of-life approach,” providing mental resilience training and help with substance use and financial literacy.

The Rotterdam local government also funds up to 70% of the wages for young people who are chronically unemployed. This ensures that those facing domestic violence or mental health issues are not left without institutional contact.

the Netherlands uses fiscal policy to encourage hiring. Schemes like the “labour cost advantage” provide tax benefits of up to €6,000 to businesses that hire young workers.

Expert Insight: Samantha Carter notes that the disparity in outcomes may stem from a fundamental difference in investment. The data shows a significant gap in GDP spending on active labour market policies, suggesting that achieving lower Neet rates likely requires a structural shift in funding rather than temporary grants.

The Financial Gap

The difference in investment is stark. In 2011, Britain spent 0.5% of its GDP on active labour market policies and 0.01% on hiring incentives.

During the same period, the Netherlands spent 2.3% of its GDP on active labour market policies and 0.5% on employment subsidies.

Future Implications

Former Labour cabinet minister Alan Milburn noted that while Britain may not be able to copy the Dutch system exactly due to different cultures and structures, there is much to learn.

A possible next step for UK policymakers could involve a more integrated approach that aligns education, welfare, and business incentives. Increasing the engagement of employers within the education system may help young people gain earlier familiarity with the world of work.

If the UK chooses to prioritize vocational investment, it could potentially reduce the number of young people left without clear pathways to employment.

Frequently Asked Questions

What is a “Neet”?

A Neet is a person who is Not in Education, Employment, or Training.

How does the Dutch MBO system differ from the UK approach?

In the Netherlands, vocational secondary education (MBO) is highly valued and attended by nearly 70% of 16- to 19-year-olds in upper secondary education, whereas only 22% of 18- to 21-year-olds in the UK were on vocational courses in 2024.

What financial incentives do Dutch employers receive?

Dutch employers have accessed schemes such as the “premium subsidy for young workers,” worth €3,500 a year, and the “labour cost advantage,” which offers tax benefits of up to €6,000.

Do you believe vocational training should be given the same societal value as traditional university degrees?

What can the Dutch teach the UK about how to tackle the youth jobs crisis? | Young people