CPAG STUDY The generation blocked between school and work: Romania, European champion in young people who neither study nor work

A Report by Consilium Policy Advisors Group (CPAG) shows that Romania has simultaneously the lowest percentage of students working during their studies and the highest rate of NEET youth (young people who are neither in education nor in employment) in the European Union (ages 15–29). Only 1.2% of young people in education are also active in the labor market, compared to a European average of 11.6% and over 30% in Nordic countries like the Netherlands or Denmark. At the same time, 19.4% of Romanian youth are neither in school, nor employed, nor in vocational training – almost double the EU average of 11%.

The analysis is based on microdata from the European Labor Force Survey (EU-LFS) updated in December 2025, which allows for a fine description of the educational and occupational status of young people in all EU countries. Two synthetic indicators are central: SELRATIO, which measures the share of young people combining formal education with work, and UNEMPRATIO, the unemployment rate among young people.

A segmented system: "study now, work later"

The report describes an almost complete separation between education and work in Romania: 97% of young people in formal education do not participate at all in the labor market, compared to an average of 71.4% in the EU. In comparison, in the Netherlands, 74.3% of students have a job alongside their studies, while in Denmark, over half are employed. Romania is found in the "Group 5" of Europe, an intermediate model, but it is positioned at the lower extreme: only 8% of unemployed youth and 1% of inactive youth manage to transition to a job each quarter, the lowest transition rates in this group.

This "sequential transition" – first school, then possibly work – means that most Romanians finish their studies without professional experience and with additional difficulties in finding their first job. The authors speak of a structural "transition gap" that reduces the accumulation of human capital, limits practical skills, and pushes young people towards unemployment, inactivity, or emigration.

Who are NEET youth: mostly women, mostly in rural areas

The NEET profile is clear: 63% of these young people are women, and the gender gap is one of the largest in Europe. The NEET rate among women reaches 25.2%, compared to 14% among men, which means a gap of 11.2 percentage points, compared to an average gap of only 2.1 points in the EU. In absolute terms, approximately 588,000 young Romanians aged 15 to 29 are outside any educational or professional pathway, of which 371,000 are women.

The educational profile is concerning: 24% of NEETs have not completed high school, double the OECD average of 13%. Among women with low education, the NEET rate has increased from 28.8% in 2016 to 44.1% in 2024, in contrast to the European trend. Early school dropout appears as the main "upstream" factor of the phenomenon, along with a decrease in the higher education graduation rate among young adults (from 26% to 23% between 2019 and 2024).

The territorial dimension deepens the divide. In large cities, Romania converges with the EU average, even performing better among men: the NEET rate for young men is 4.5%, below the European urban average of 9.7%, and for women, the differences are minimal (10.4% vs 10.6%). In small towns and suburbs, the NEET rate for women rises to 28.5% (compared to 12.8% in the EU), and in rural areas, it reaches 34.8%, 2.5 times the European average for rural women (14.2%). The Southeast and Central regions have the highest female NEET rates, 37.7% and 32.7%, respectively, with gender gaps of over 15 percentage points.

Perceptions, low wages, and the "emigration strategy"

An INSCOP survey from 2025, cited in the report, shows that 43.2% of young people aged 18–35 are not employed, especially those under 25, women, rural residents, and those with low education. Among those facing barriers to employment, 43.6% cite low wages as the main obstacle, followed at a great distance by lack of experience (25.6%), geographical issues (8.7%), or mismatch between training and available jobs (8%).

Dissatisfaction with wage levels fuels a massive orientation towards emigration: 66.2% of surveyed young people believe that working abroad improves their standard of living, and 27.6% declare that they intend to leave for work or studies in the next 12 months. Almost two-thirds of potential emigrants cite better wages as their main motivation.

The report insists that the problem is not the complete lack of jobs, but rather the perception of the poor ratio between wages and the cost of living. Only 27.5% of already employed young people believe they are adequately paid, a similar proportion (28.3%) explicitly dissatisfied with their income.

Structural explanations: rigid education, fragile labor market

The authors put forward a set of factors that together transform Romania into a unique case in the EU and make any punctual correction difficult. The education system is described as rigid, centered on fixed attendance and schedule programs, poorly adapted to allow students to work part-time or enter dual education formats. There are alternative forms (reduced attendance, distance learning), but these remain marginal and do not provide a generalized framework for combining studies with work.

The labor market is marked by a high rate of informal work, a total employment level below the EU average, and specific barriers for young people aged 15–24, where the employment rate is only 18.7%, well below the European average. Technology and artificial intelligence further complicate entry into the labor market: many routine tasks associated with entry-level positions are being automated, reducing demand for traditional "on-the-job training" jobs for beginners.

The legislative and fiscal framework has discouraged, in recent years, contracts with reduced hours, typically preferred by students: calculating social contributions at the minimum wage level even for part-time contracts has increased costs for employers. Although there are exceptions for some categories (students under 26, apprentices), the overall architecture remains in favor of full-time employment. The internship system is perceived as bureaucratic, and options for seasonal or vacation work are insufficiently clarified and institutionally supported.

Demography accentuates the stakes: between 2024 and 2040, Romania's population aged 15–64 is projected to decrease by about 15%, while the OECD level remains relatively stable. In such a context, each cohort that enters the labor market late or precariously means definitive losses of income over a lifetime, lower contributions to pension systems, and additional pressure on social budgets.

What the report proposes: from "Learn–Work" to European funds

The report advocates for a systemic response, not for isolated interventions, and proposes five strategic reform directions. The first aims at a profound flexibilization of the education system: expanding part-time programs in high school and university, developing dual education based on the German-Austrian model, adapting university schedules, and modular recognition of competencies through micro-credits connected to labor market needs.

The second direction focuses on stimulating labor demand for students and graduates: tax incentives for employers offering flexible jobs to young people, infrastructure for paid internships in sectors with labor shortages, apprenticeship programs, and junior positions clearly dedicated to students. The third involves legislative adjustments: simple and predictable entry contracts, adapted to the school calendar, clear schemes for seasonal and reduced-hour work, as well as an explicit correlation between the type of study program and the intensity of permitted work.

Addressing the NEET phenomenon is approached through differentiated interventions that distinguish between young people relatively close to the labor market and those with multiple vulnerabilities. The report recommends actively identifying NEETs through field teams, strengthening public employment services, "second chance" education programs, prioritizing young women from rural areas in implementing the "Youth Guarantee," and concrete mobility measures (transport, commuting subsidies).

A final direction emphasizes structured, mandatory career counseling from a younger age, so that students know their skills, acquire transferable competencies, and can navigate a labor market transformed by AI and digitalization. The report insists that the goal is not to push students towards fixed professions, but to develop long-term adaptability capacity.

Financially, the authors propose that Romania use the next EU multiannual financial framework (2028–2034) to negotiate allocations dedicated to combating structural vulnerabilities: (re)qualification programs for NEET youth through the European Social Fund, investments in rural and peri-urban transport through cohesion funds, social inclusion and housing projects for at-risk youth, as well as using Erasmus+ and the future European Competitiveness Fund for internships, apprenticeships, and qualifications in strategic sectors.

The conclusion of the report is blunt: in the context of demographic decline, Romania "can no longer afford the cost of inaction," and each generation that goes through a failed transition between school and work involves a definitive loss of economic and social potential. The document thus proposes moving from a fragmented approach to a genuine "Learn–Work" ecosystem in which education, the labor market, and social policies are designed together.