Education, Learning and Training Research Paper Series
Youth not in employment, education or training: Recent trends

Abstract

This fact sheet examines how the rates of youth not in employment, education or training (NEET) have evolved in the context of challenging labour market conditions for youth over the past years. Key findings include the following:

• Youth aged 20 to 29 years were most affected by rising NEET rates from the 2022/2023 to 2023/2024 academic years.
• The increase in the NEET rate of young men in their 20s without a bachelor’s degree over this period was driven by their exit from the labour force. Among young women, increased unemployment was offset by increased school attendance. 
• In 2023/2024, Black and Chinese youth had higher NEET rates than non-racialized, non-Indigenous youth.
• Highly educated immigrants have been disproportionately affected by rising NEET rates, regardless of their immigration period to Canada or where they received their education.

Introduction

The proportion of youth not in employment, education or training (NEET)^Note  is an indicator that is used worldwide to assess the risk of social disconnection and exclusion among youth during their transition from education to employment.

The NEET rate is closely linked to the labour market. In recent years, youth have faced more challenging labour market conditions, marked by an uptick in unemployment. These trends have raised questions about whether the NEET rate has also increased and whether youth have become more or less likely to pursue education in recent years.

Accordingly, this fact sheet examines changes in employment, unemployment and NEET rates among youth aged 15 to 29 years, by condensed academic year^Note  (October to March) over the past five years. To contextualize the changing NEET rate, this paper will first describe trends in youth labour market conditions. Results are subsequently presented by age group, gender (men+ or women+),^Note  racialized group and immigrant status, highlighting the impacts of changing economic conditions on NEET rates across various demographic groups.

Youth feel the brunt of labour market cooling as their employment rates fall below levels seen before the COVID-19 pandemic

The past five years have been a period of large shifts in the labour market. The COVID-19 pandemic caused many businesses to shut down throughout 2020 and 2021, resulting in large declines in employment. Youth were particularly affected, as they are more likely to work in part-time or temporary jobs in the industries that were hardest hit by the COVID-19 business shutdowns (e.g., accommodation and food services, and retail trade). Additionally, younger workers typically lack seniority and job security and are often the first to lose their jobs during labour market disruptions.^Note 

Following these disruptions, labour demand increased rapidly as the economy recovered, resulting in tight labour market conditions. In the summer of 2022, the job vacancy rate reached a record high (5.7% in May 2022), while the unemployment rate reached a record low (4.8% in July 2022) for those aged 15 and older.

Beginning in 2023, slowing growth in labour demand and rapid population growth contributed to declining employment rates, and unemployment started to trend up, particularly for youth. For youth aged 15 to 29 years, the employment rate declined by 2.7 percentage points from March 2023 to March 2024, to 62.9%. While their participation rate remained relatively steady, their unemployment rate increased by 2.9 percentage points to 10.9% over this time.

In comparison, the employment rate for those aged 30 to 54 years was relatively steady, standing at 84.6% in March 2024, unchanged from March 2022—remaining above the employment rate of 83.0% in March 2019, before the COVID-19 pandemic.

Data table for Chart 1

Data table for Chart 1 Table summary
This table displays the results of Data table for Chart 1 95% confidence interval, Lower limit, Upper limit and Unemployment rate , calculated using percent units of measure (appearing as column headers).

	Unemployment rate	95% confidence interval
		Lower limit	Upper limit
	percent
Notes: CI = confidence interval. Data are six-month moving averages ending in March, corresponding to an October-to-March academic year. Source: Statistics Canada, Labour Force Survey.
2018/2019	8.2	7.8	8.6
2019/2020	9.4	9.0	9.8
2020/2021	13.4	12.7	13.9
2021/2022	8.4	7.9	8.8
2022/2023	7.7	7.3	8.1
2023/2024	9.4	9.0	9.7

The rate of youth not in employment, education or training has trended upwards, particularly for those in their late 20s

The share of NEET youth can signal emerging issues for youth transitioning from education to employment. When young people are neither in school nor employed for a prolonged period, they may miss out on acquiring skills and knowledge, potentially reducing their long-term job prospects, earnings and overall well-being.

In 2020/2021, the NEET rate rose to its highest level in over 20 years (13.2%) as many young people faced disruptions through the closure of schools and the loss of employment opportunities stemming from the COVID-19 pandemic. Over half (55.6%) of those who graduated in 2020 saw their employment status or employment plans change at some point that year.^Note  Further, this period was marked by shifts to virtual learning and a decline in mental health and well-being among youth.^Note 

By 2021/2022, the NEET rate had recovered from the initial shock of the COVID-19 pandemic. During this period, 1 in 10 youth aged 15 to 29 (10.5%) were NEET, the same proportion as in the 2018/2019 academic year.

In the 2023/2024 academic year, as the youth employment rate declined, the share of NEET youth rose, reaching 11.3%. This increase was primarily driven by growth in the proportion of youth seeking employment while not in school (+0.7 percentage points) rather than by a rise in the proportion of youth out of the labour force (+0.4 percentage points).

Although this increase in the NEET rate was tempered by a gain in school attendance (+0.7 percentage points), the NEET rate in 2023/2024 was higher than its pre-pandemic level of 10.4% in 2018/2019.

Data table for Chart 2

Data table for Chart 2 Table summary
This table displays the results of Data table for Chart 2 25 to 29 years old , 20 to 24 years old , 15 to 29 years old and 15 to 19 years old , calculated using percent units of measure (appearing as column headers).

	15 to 29 years old	15 to 19 years old	20 to 24 years old	25 to 29 years old
	percent
Source: Statistics Canada, Labour Force Survey.
2018/2019	10.4	5.6	11.7	13.3
2019/2020	12.0	7.4	13.0	15.1
2020/2021	13.2	6.4	15.5	16.9
2021/2022	10.5	5.5	12.0	13.1
2022/2023	10.2	5.3	11.7	12.8
2023/2024	11.3	5.7	12.7	14.6

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 The not in employment, education or training indicator for youth aged 15 to 19 years, 20 to 24 years and 25 to 29 years

The share of youth not in employment, education or training (NEET) varies significantly depending on their stage of young adulthood.

• Teenagers (individuals aged 15 to 19 years) completing their secondary education typically have a lower NEET rate.
• Young adults aged 20 to 24 years demonstrate diverse trajectories depending on whether they pursue postsecondary education.
• Most individuals aged 25 to 29 years have finished their education and entered the labour market, resulting in higher NEET rates.

These differences are highly relevant to understanding the changes in youth employment rates and NEET rates. People follow diverse pathways, and there are many reasons why an individual may not be working or in school. For example, young people may be temporarily out of the labour force because of caregiving, volunteering or job searching. Some may delay completing a university degree for similar reasons.

Accordingly, the NEET rate may reflect a range of situations that may not always be negative. That said, rising NEET rates may signal higher risks of social disconnection and exclusion among youth as they enter adulthood.

For additional context on these age groups, see Brunet (2018a, 2018b and 2019).

End of text box

Youth in their 20s were the most affected by rising rates of youth not in employment, education or training

While the NEET rate has trended upwards for those aged 15 to 29 years since 2022/2023, the increase has been more pronounced for those in their 20s. When comparing the 2023/2024 academic year with the 2022/2023 academic year, the NEET rate increased by 1.8 percentage points for youth aged 25 to 29 and 1.0 percentage point for those aged 20 to 24. The increase was not statistically significant for those aged 15 to 19.

The relatively stable NEET rate for youth aged 15 to 19 years can be attributed to two key factors. First, over 80% of youth aged 15 to 19 were attending secondary or postsecondary school, and declines in student employment do not influence NEET rates. Second, the share of youth aged 15 to 19 attending postsecondary education (e.g., college, CEGEP or university) increased by 1.2 percentage points in 2023/2024, to 25.2%. Such increases in postsecondary attendance are historically observed when labour markets are weaker and job opportunities are scarce.^Note 

Differences in school attendance led to a larger increase in the rate for young men in their 20s not in employment, education or training, relative to young women

Those with lower levels of education tend to have higher NEET rates and are more susceptible to changing labour market conditions. This was observed in the 2023/2024 academic year, as the employment rate fell among men (-2.1 percentage points) and women (-1.9 percentage points) aged 20 to 29 years^Note  who did not have a bachelor’s degree and were not attending school (Chart 3).

Among young women aged 20 to 29, as the employment rate declined, postsecondary school attendance increased (+2.2 percentage points). From 2022/2023 to 2023/2024, the NEET rate did not increase significantly for women (15.2% NEET in 2023/2024).^Note 

For young men, however, school attendance did not significantly rise. Over this period, the NEET rate increased by 1.3 percentage points (15.1%), largely attributable to falling labour force participation (-0.8 percentage points). This finding aligns with the established trend of young women being more likely to pursue postsecondary education and successfully graduate compared with young men.^Note 

Data table for Chart 3

Data table for Chart 3 Table summary
This table displays the results of . The information is grouped by Estimate (appearing as row headers), Women+, Upper limit, Lower limit, Men+ and 90% confidence interval, calculated using percentage point change units of measure (appearing as column headers).

Estimate	Women+	90% confidence interval		Men+	90% confidence interval
		Lower limit	Upper limit		Lower limit	Upper limit
	percentage point change
Note * significantly different from the 2022/2023 academic year (p < 0.1) Return to note&nbsp;* referrer Notes: NEET = not in employment, education or training. The category “men+” includes men and some non-binary individuals, while the category “women+” includes women and some non-binary individuals. Source: Statistics Canada, Labour Force Survey.
NEET rate	0.9	-0.2	2.0	1.3 Chart 3 Note *	0.3	2.3
Share employed	-1.9 Chart 3 Note *	-3.6	-0.3	-2.1 Chart 3 Note *	-3.4	-0.8
Share attending school	2.2 Chart 3 Note *	0.6	3.7	1.0	-0.2	2.2

Increases in the rate of youth not in employment, education or training are disproportionately affecting racialized groups

Over the past year, the rising NEET rate has disproportionately affected the racialized population, further indicating that not all youth have been equally affected by the changing labour market conditions.^Note 

The NEET rate rose by 2.0 percentage points among members of racialized groups aged 20 to 29. Among the largest racialized groups,^Note  Black youth were more likely (19.8%) than non-racialized, non-Indigenous youth to be NEET in the 2023/2024 academic year. This marks a 3.9 percentage point increase in the NEET rate for Black youth from 2022/2023.

Among Chinese youth, 14.3% were NEET, marking a 3.8 percentage point increase from 2022/2023.^Note  Notably, the NEET rate for Chinese youth was lower than that of non-racialized, non-Indigenous youth in 2022/2023, but surpassed it in 2023/2024.

Conversely, among youth aged 20 to 29 years who were not racialized and not Indigenous, fewer were NEET (12.8%), and the increase in the NEET rate from the previous year was smaller (+0.9 percentage points) (see Table A.3).  

Among racialized groups, the increase in the NEET rate was driven by a higher incidence of youth who were unemployed and not in school (+1.4 percentage points), rather than by youth exiting the labour market entirely or by a decline in the share attending school.^Note 

Increases in the rate of youth not in employment, education or training were especially pronounced among immigrants with a bachelor’s degree or higher

Typically, individuals with higher education levels have lower NEET rates and tend to be employed in higher-skilled jobs. However, recent data suggest a shift in this pattern for immigrants. Immigrants holding a bachelor’s degree or higher experienced a 3.5 percentage point increase in their NEET rate compared with the previous academic year (14.1%).^Note  Immigrants with an education level below a bachelor’s degree experienced a smaller increase in youth NEET (+1.5 percentage points).

This increase in the NEET rate for highly educated immigrants was observed regardless of when they immigrated to Canada or where they received their education (see Table A.4).

In contrast, the NEET rate of Canadian-born youth with a bachelor’s degree remained relatively stable at 6.8%, with no significant changes in their NEET rate or unemployment rate over the past year.

Taken together, these observations suggest that highly educated immigrants, who are not typically NEET, are facing challenges in transitioning from school to work that aligns with their skill level.

Conclusion

The patterns of youth employment and NEET rates have varied significantly by age group over the past academic year. The largest declines in employment were observed among youth in their late teens, while the smallest were among those in their late 20s. Conversely, NEET rates rose most among youth in their late 20s. This result is driven by an uptick in non-students experiencing difficulties finding work, rather than lower school enrolment rates.

For older age groups, the rise in the NEET rate disproportionately affected racialized youth. Black and Chinese youth were particularly affected, while non-racialized, non-Indigenous youth showed smaller changes in their NEET rates from the 2022/2023 academic year to the 2023/2024 academic year.

Furthermore, increases in NEET rates were concentrated among immigrants with a bachelor’s degree or higher, indicating that these individuals faced additional challenges in finding work aligned with their education level after completing their studies.

Together, these results suggest that the challenges associated with rising NEET rates during the recent cooling of labour market conditions disproportionally affected racialized youth and highly educated immigrants, rather than all youth.

These findings highlight the complex interplay of factors influencing youth employment and NEET rates. They underscore the importance of considering individual characteristics such as age, education level, immigrant status and racialization in understanding these trends and developing effective policy responses to support youth as they transition from education to employment.

Definitions, data sources and methods

Data sources

The data used in this article come from the Labour Force Survey (LFS). The sample is representative of Canada’s population aged 15 years and older, excluding people living on reserves and other Indigenous settlements in the provinces, full-time members of the Canadian Armed Forces, the institutionalized population, and households in extremely remote areas with very low population density. The population of the territories is also excluded from the national estimates. Together, these excluded groups represent approximately 2% of the population aged 15 and older.

Information gathered from LFS respondents is weighted to represent the survey target population using population calibration totals. These totals are updated each month, using the most recently available information on population changes, including changes in the number of temporary residents. LFS population calibration totals are derived from Canada’s official population estimates using similar sources and methods, with minor adjustments being made to reflect exclusions from the LFS target population. However, the LFS does not calibrate the temporary resident population to reflect its current share in the overall population, as it does not specifically ask about temporary resident status.

Definitions

Youth: The population aged 15 to 29 years. This is the standard population for the not in employment, education or training (NEET) indicator; it differs from the concept of “youth” used in the monthly LFS releases, which typically refers to people aged 15 to 24.

Employment rate: The number of employed people as a percentage of the population aged 15 and older, or for a subgroup within that population.

Gender: An individual’s personal and social identity as a man, woman or non-binary person (a person who is not exclusively a man or a woman). Some people may not identify with a specific gender, and a person’s gender may change over time.

Gender includes the following concepts:

• gender identity, which refers to the gender that a person feels internally and individually
• gender expression, which refers to the way a person presents their gender, regardless of their gender identity, through body language, aesthetic choices or accessories (for example, clothes, hairstyle and makeup), which may have traditionally been associated with a specific gender.

A person’s gender may differ from their sex at birth and from what is indicated on their current identification or legal documents, such as their birth certificate, passport or driver’s licence. The LFS started collecting information on gender in 2022. Before 2022, the LFS collected information only on the sex of a person (male or female), as declared by the respondent or recorded by the interviewer. The sex variable before 2022 and the two-category gender variable since 2022 are combined in this fact sheet. Although sex and gender refer to different concepts, the introduction of gender is not expected to have a significant impact on data analysis and historical comparability, given the small size of the transgender and non-binary populations.

Unemployment rate: The number of unemployed people as a percentage of the labour force (employed and unemployed).

Participation rate: The number of employed and unemployed people as a percentage of the population aged 15 years and older, or for a subgroup within that population.

NEET (not in employment, education or training) rate: The number of people who are not attending high school, college, CEGEP, university or an equivalent type of school and are not employed, as a percentage of the population aged 15 to 29 years, or for a subgroup within that population.

The NEET indicator is composed of three mutually exclusive categories totalling 100%: young people who are in school, young people who are working and not in school, and young people who are NEET. Accordingly, NEET and employment are separate concepts. One cannot be calculated directly from the other, even in combination with the school attendance rate, because changes in the employment rate can also affect students.

Canadian-born individuals: All individuals born in Canada, regardless of citizenship status. The LFS does not include a question on citizenship.

Immigrant: A person who is or has ever been a landed immigrant or permanent resident in Canada. This person has been granted the right to live in Canada permanently by immigration authorities. Some immigrants have resided in Canada for a number of years, while others have arrived more recently. Some immigrants are Canadian citizens, while others are not.

Racialized groups: Data on racialized groups are derived from the “visible minority” variable. “Visible minority” refers to whether a person belongs to one of the visible minority groups defined by the Employment Equity Act. The Employment Equity Act defines visible minorities as “persons, other than Aboriginal peoples, who are non-Caucasian in race or non-white in colour.” The visible minority population consists mainly of the following groups: South Asian, Chinese, Black, Filipino, Latin American, Arab, Southeast Asian, West Asian, Korean and Japanese.

Methodology

The bootstrap method was employed to calculate the estimates reported in this study. This method uses 1,000 bootstrap weights to calculate variation in the estimates caused by sampling.

Unless otherwise stated, confidence intervals on the percentages in this analysis correspond to the 90% confidence interval. If the 90% confidence interval of an observed estimate of change does not contain zero, then the change is considered statistically significant at the 10% level of significance. In charts, an increase or decrease is significant if the bars do not overlap with the x-axis of the chart.

References

Bernard, André. 2013. Unemployment Dynamics Among Canada’s Youth. Economic Insights. Statistics Canada Catalogue no. 11-626-X.

Brunet, Sylvie. 2018a. The transition from school to work - the not in employment, education or training (NEET) indicator for 15 to 19 year olds in Canada. Education Indicators in Canada: Fact Sheets. Statistics Canada Catalogue no. 81-599-X.

Brunet, Sylvie. 2018b. The transition from school to work - the NEET (not in employment, education or training) indicator for 25- to 29-year-old women and men in Canada. Education Indicators in Canada: Fact Sheets. Statistics Canada Catalogue no. 81-599-X.

Brunet, Sylvie. 2019. The transition from school to work: the NEET (not in employment, education or training) indicator for 20- to 24-year-olds in Canada. Education Indicators in Canada: Fact Sheets. Statistics Canada Catalogue no. 81-599-X.

Davidson, Jordan and Arim, Rubab. 2019. A Profile of Youth Not in Employment, Education or Training (NEET) in Canada, 2015 to 2017. Analytical Studies Branch Research Paper Series. Statistics Canada Catalogue no. 11F0019M.

Layton, Jaclyn. 2022. The impact of the COVID-19 pandemic on the proportion of youth not in employment, education or training: A regional analysis and international perspective. Education Indicators in Canada: Fact Sheets. Statistics Canada Catalogue no. 81-599-X.

Statistics Canada. 2024. The impacts of the COVID-19 pandemic on the postsecondary graduating class of 2020. The Daily.

Wall, Katherine. 2021. Gendered impacts of the COVID-19 pandemic on the proportion of youth neither in employment nor education at the start of the school year. Insights on Canadian Society. Statistics Canada Catalogue no. 75-006-X.

Appendix