This report analyses the labour market situation of young people in Europe, with a specific focus on the NEET group. It examines the determinants of belonging to the NEET group, and measures the economic and social costs of NEETs. It also assesses how Member States through policies and interventions have sought to support young people to gain a foothold in the labour market. It shows that successful policy initiatives address specific, disadvantaged subgroups in the NEET population. They are client-centred in their efforts to set young people on a pathway to long-term, sustainable employment and they are innovative, adopting new ways of reaching a target group. An executive summary is also available.