This paper presents important determinants of NEET population (young people who are not employed, nor in the system of education or training): the emergence of NEET concept and bringing it to the center of youth policy, statistical indicators of the distribution of NEET rate in Croatia and the EU, and economic, social and political consequences of belonging to NEET group. According to data from Eurostat in 2015 in Croatia, 18.5% of young people aged 15-24 years were in the NEET status. It is a nearly one-fifth of young people who are at high risk of social exclusion and which represents a significant loss of capital for the society and its development. The second part deals with the response of the EU member states on the growing problem of youth unemployment and examples of measures which are shown to be successful. With reference to the problem of early-school leaving and measures taken in this area, there are also presented measures to improve the transition from education to the labor market and measures targeted incentives for employers. Although the implementation of the Youth Guarantee in Croatia resulted in a number of measures to increase employment and employability of young people, the question of sustainability of their jobs still appears and on the other hand, structural economic reforms impose as a major tool in reducing the number of young unemployed.