Denmark has higher labour force participation and employment rates among 15‑29 year‑olds than the OECD and EU averages, and a lower youth unemployment rate. With about one in ten young people not in employment, education, or training (NEETs), Denmark ranks in the lowest third of OECD countries, though above most other Nordic countries. Inactive NEETs, i.e. those who are not looking for a job, account for seven out of ten NEETs in Denmark and their weight in the total NEET rate is larger than the OECD average. The larger share of inactive in total NEETs in Denmark is related to a drop in the share of young people in education combined with improvements in youth labour market outcomes.
The NEET rate in the North Denmark Region (11.3%) is comparable to that the rest of the country (11.0%) and below the OECD average (12.8%). Even so, there is considerable variation within the Northern region, with many of the small municipalities reporting higher NEET rates than the two largest municipalities. Nearly six out of ten NEETs in the North Denmark Region are low educated, and half of all NEETs are between 25 and 29 years. Low education and mental ill-health are the two most important risk factors for unemployment and inactivity among young people in North Denmark. Care obligations for young parents (mothers in particular) is a third (though minor) reason in some of the smaller municipalities, with gender gaps in the NEET rate of up to 14 percentage points.
Denmark has well-established active labour market policies for young people with a strong focus on early intervention and labour market integration support. Each municipality operates its own Job centre, which works in close collaboration with local businesses, youth guidance centres, social partners, and other youth stakeholders. Municipalities have significant autonomy to tailor programmes to local labour market conditions and the specific needs of their residents.
Overall, Job centres in the North Denmark Region are quite successful in getting job/education-ready young people into employment or further education within a reasonable time. Each quarter, around one in five young people leave the Job centre for employment or education and more than two‑thirds of young people receiving unemployment or sickness benefits have been registered for less than 24 weeks (6.5 months). Among those who leave the Job centre, 90% are still in employment or education six months later and the share is very similar after 12 months, at 84%. Only 10% return to the Job centre after one year.
There is, however, a substantial group of young people who have been inactive for more than three years – half of all NEETs in the North Denmark Region – and two‑thirds of them have considerable challenges to enter the labour market or return to education. All municipalities interviewed for the purpose of this report mentioned that mental ill-health is the biggest challenge in helping this group into work or education. Survey data confirm that close to half of all NEETs have mental health issues. While many municipalities have hired psychologists to support youth case workers in their work and to provide a few sessions of psychological treatment, there is a shortage of specialised psychologists and psychiatrists in regional psychiatric centres, leading to long waiting times for treatment. In addition, a recent evaluation shows that psychological support alone is insufficient to improve young people’s education and employment outcomes. More closely integrated mental health and employment support is required, as well as close collaboration between mental health services and the education sector.
The other key determinant for the NEET rate in the North Denmark Region (and Denmark as a whole) is low education. Low-educated young people account for 58% of all NEETs in North Denmark and NEET rates are about twice as high among low educated young people than among their more educated peers. Low education is a more significant issue among native‑born youth than among foreign-born youth, though the latter represent only 11% of the total NEET population. According to interviews with Job centres, low educated young people have often struggled with low grades throughout their education and have not necessarily received sufficient support. School dropout is a bigger issue in Denmark than in other EU countries and has worsened over time, rising from 8.2% in 2013 to 10.4% in 2023, compared to an EU27 average of 9.5%. While collaborations between the education system and Job centre staff exist in many municipalities in the North Denmark Region, it does not necessarily happen on a systematic basis.
Many efforts are currently being undertaken in Denmark to address the challenges in supporting (young) people in vulnerable situations. The analysis in this report contributes to the discussion by highlighting the importance of addressing mental ill-health and low education to improve outcomes for young people. The OECD suggests the following key recommendations for the North Denmark Region:
Additional recommendations are provided at the end of the report.
