OCDE - Advancing inclusive growth in cities for youth

2025 D4SME Survey OECD SME and Entrepreneurship PapersOECD Regional Development Papers Advancing inclusive growth in cities for youth 2025 D4SME Survey OECD SME and Entrepreneurship Papers OECD Regional Development Papers Advancing inclusive growth in cities for youthOECD Regional Development Papers

Advancing inclusive growth in cities for youth

Across the OECD and the EU, young people in cities face particular challenges in accessing quality jobs, affordable and adequate housing, essential services, and urban amenities. Addressing these challenges requires urgent action through people-centred, place-based and integrated approaches to foster inclusive growth for youth, ensuring that all young residents can contribute to and benefit from economic development in cities. This policy paper provides an overview of the challenges faced by young people in cities, as well as strategic guidance to support local and national policymakers in designing and implementing effective inclusive growth strategies tailored to youth. Drawing on evidence from a diverse range of cities, the paper highlights actions across five policy areas – education, employment, housing and the built environment, infrastructure and services, and climate action – as well as key enabling factors for effective implementation. It emphasises the importance of stronger co-ordination between policy departments rather than siloed approaches, providing early interventions and supporting young people through key life transitions, and adopting proactive outreach strategies that bring policies and services directly to where young people live, study and work.

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ADVANCING INCLUSIVE GROWTH IN CITIES FOR YOUTH © OECD 2026

ABOUT THE OECD The OECD is a multi-disciplinary inter-governmental organisation with member countries which engages in its work an increasing number of nonmembers from all regions of the world. The Organisation’s core mission today is to help governments work together towards a stronger, cleaner, fairer global economy. Through its network of specialised committees and working groups, the OECD provides a setting where governments compare policy experiences, seek

increasing number of nonmembers from all regions of the world. The Organisation’s core mission today is to help governments work together towards a stronger, cleaner, fairer global economy. Through its network of specialised committees and working groups, the OECD provides a setting where governments compare policy experiences, seek answers to common problems, identify good practice, and c o-ordinate domestic and international policies. More information available: www.oecd.org. ABOUT OECD REGIONAL DEVELOPMENT PAPERS Papers from the Centre for Entrepreneurship, SMEs, Regions and Cities of th e OECD cover a full range of topics including regional statistics and analysis, urban gove rnance and economics, rural governance and economics, a nd multi-level governance. Depending on the programme of work , the papers can cover specific topics such as regional innovation and networks, sustainable development, the dete rminants of regional growth or fiscal consolidation at the subnational level. OECD Regional Development Papers are published on http://www.oecd.org/cfe/regional-policy. This work is issued under the responsibility of the Secretary-G eneral of the OECD, and does not necessarily reflect the official views of OECD Member countries. This document, as well as any statistical data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of intern ational frontiers and boundaries and to the name of any territory, city or area. Note by the Republic of Türkiye: The information in this docume nt with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representin g both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiye shall preserve its position concerning the “Cyprus issue”. Note by all the European Union Member States of the OECD and the European Union: The Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.

Note by all the European Union Member States of the OECD and the European Union: The Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus. This document was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.

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© OECD 2026

Attribution 4.0 International (CC BY 4.0) This work is made available under the Creative Commons Attribution 4.0 Interna tional licence. By using this work, you accept to be bound by the terms of this lice nce ( https://creativecommons.org/licenses/by/4.0/). Attribution – you must cite the work. Translations – you must cite the original work, identify changes to the original and add t he following text: In the event of any discrepancy between the origin al work and the translation, only the text of original work should be considered valid. Adaptations – you must cite the original work and add the following text: This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed in this adaptation should not be reported as representing the official views of the OECD or of its Member countries. Third-party material – the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and for any claims of infringement. You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work. Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shall be Paris (France). The number of arbitrators shall be one. 3

ADVANCING INCLUSIVE GROWTH IN CITIES FOR YOUTH © OECD 2026

Foreword

shall be Paris (France). The number of arbitrators shall be one. 3

ADVANCING INCLUSIVE GROWTH IN CITIES FOR YOUTH © OECD 2026

Foreword This policy paper is one of three policy papers that are part of the broader OECD/E C What Works for Inclusive Growth in Cities project. The other two policy papers focus on people at risk of poverty and social exclusion (AROPE) and people with a migrant background. Drawing on a two-phase survey of EU cities (2024-2025), selected good practices from respondent cities and dedicated policy workshops, these policy papers reflect both evidence on effective policy approaches and practical insights from implementation. These inputs underpin the policy paper findings and recommendations, ensuring that they combine “what works” with actionable guidance on how to deliver inclusive growth in practice. The insights gathered from across the project have also been synthesised in a practical Roadmap for Inclusive Growth in Cities, which provides a guide for taking action on Inclusive Growth at the local scale. This analysis primarily focuses on cities in the EU, complemented by selected examples from other OECD cities, in par ticular those participating in the OECD Champion Mayors for Inclusive Growth Initiative, as well as additional cases of good practices with clear relevance for EU cities The policy paper on inclusive growth for youth in cities builds on a substantial body of OECD and European Union work on youth and inclusive growth in cities. It draws on a range of recent reports, policy frameworks and analytical tools that have shaped the current policy agenda, includi ng the EU Council Recommendation on Pathways to School Success (2022), the EU Union of Skills (2025) and the European Democracy Shield (2025). It also reflects evidence and insights from key European Co mmission publications, notably the Ninth Report on Economic, Social and Territorial Cohesion (2024), The Situation of Young People in the European Union (2024), Investing in Education (2025), the Education and Training Monitor (2025), and recent work on youth access to affordable and quality housing (2026). In paralle l, the

of Young People in the European Union (2024), Investing in Education (2025), the Education and Training Monitor (2025), and recent work on youth access to affordable and quality housing (2026). In paralle l, the analysis is informed by OECD work on youth inclusion, including the joint O ECD-European Commission work The Missing Entrepreneurs 2023, Creating Pathways to Success for Young People (2024), the OECD Youth Policy Toolkit (2024), and the Policy Pointers from the Youth Entre preneurship Policy Academy (2025). Together, these contributions provide a robust evidence base and poli cy foundation for the policy paper, situating it within a broader international effort to support young people’s inclusion, resilience and long-term prospects in urban areas.4 

ADVANCING INCLUSIVE GROWTH IN CITIES FOR YOUTH © OECD 2026

Acknowledgements This policy paper was prepared by the OECD Centre for Entrepreneurship, SMEs, Regi ons and Cities (CFE), led by Lamia Kamal-Chaoui, Director, as part of the Programme of Work and Budget of the OECD Regional Development Policy Committee (RDPC). The report was carried out with the financial support of the European Commission’s Directorate-General for Regional and Urban Policy (DG REGIO). This policy paper is conducted under the OECD-EU project What Works for Inclusive Growth in Cities. The paper was drafted and co-ordinated by Thomas Kergonou Jimenez, Economist and Polic y Analyst (CFE/CITY), under the guidance of Camille Viros, Head of the Inclusive Growth in Cities Unit (CFE/CITY), and supervision of Aziza Akhmouch, Head of the Cities, Urban Policies and Sustaina ble Development (CITY) division, and Soo-Jin Kim, Deputy Head of the CITY division. The paper also benefitted from valuable inputs and comments by Elizabeth Doherty and Ewa Bialoglowska (both CFE) and by Marissa Plouin, Ali Bargu and Sara Coloni (all ELS).

valuable inputs and comments by Elizabeth Doherty and Ewa Bialoglowska (both CFE) and by Marissa Plouin, Ali Bargu and Sara Coloni (all ELS). Warm thanks go to Kadri Uustal, Gergana Miladinova, Szilvia Kalman and Miguel Hernandez Littlewood from the European Commission for their excellent co-operation and continuous suppo rt and guidance throughout the project, including their role in workshop facilitating. The policy paper draws on engagements with stakeholders across levels of government, civil society, international organisations and academics. These contributions were instrumental i n shaping the report’s analysis, best practices and key findings. Special thanks go to: Roda Aden (Camden, City of London, the United Kingdom), Alexandre Armadas Sabate (Barcelona Education Consortium, City of Barcelona, Spain), Thys Boer (N8W8 R'dam, City of Rotterdam, the Netherlands), Ruggero Cefalo (University of Florence), Marco Ciari (City of Turin, Italy), Alejandra Diaz (Camden, City of London, the United Kingdom), Sabina Gabrijel (Youth Office, City of Ljubljana, Slovenia), Florence Henry (Camde n, City of London, the United Kingdom), Leda Inga (CERDI, Université Clermont Auvergne), Grace McCanus (National Youth Council Ireland), Márton Medgyesi (TARKI), Ahmed Mokgopo (C40), Pol Mont emayor Cejas (Barcelona Education Consortium, City of Barcelona, Spain), Sergio Perez Barranco (FEANTSA), Milan Prchal (City of Brno, Czechia), Alex Quinn (European Youth Forum), Tristan Reilly (Fren ch Ministry of Sports, Youth and Community Life), Tiina Saarits (HUUB, City of Pärnu, Estonia), Rosario Scandurra (Universi ty of Barcelona), Petra Svanh (City of Turku, Finland), Vittoria Torrisi (European Youth Forum) and Christina Yancey (American Institute for Research).

and Community Life), Tiina Saarits (HUUB, City of Pärnu, Estonia), Rosario Scandurra (Universi ty of Barcelona), Petra Svanh (City of Turku, Finland), Vittoria Torrisi (European Youth Forum) and Christina Yancey (American Institute for Research). Thanks are also due to the delegates of the OECD Working Party on Urban Policy (WPURB) to whom the report was submitted for comments under cote [CFE/RDPC/URB(2026)12]. Finally, thanks are extended to Bridgette Joyce, Alix Philouze and Jack W aters in the CFE for preparing the report for publication, and to Mana Sakamoto and Nanami Yano for their support in organising project events. 5

ADVANCING INCLUSIVE GROWTH IN CITIES FOR YOUTH © OECD 2026

Table of contents Foreword 3

Acknowledgements 4 1 Challenges, needs and opportunities for youth in cities 9 Framing the issue 9 Trends and challenges affecting youth in EU cities 9 Why inclusion of youth matters for growth in cities 17 2 Policies and good practices to support youth and promote inclusive growth in cities 18 Introduction 18 Education 18 Labour market 20 Housing and the built environment 22 Public infrastructures and services 24 Fair climate action 26 3 Enablers of effective action for youth in cities 29 Introduction 29 Building coherent youth policy through vertical co-ordination and cross-sectoral action 29 Empowering young people as partners in local public policy design 30 Building robust data systems to design and evaluate effective inclusive growth policies for youth in cities 32 Strengthening youth policy delivery through innovative financing tools 33 Building the capacity to deliver youth-centred policies 34 Harnessing youth perspectives and digital tools for inclusive policy evaluation 35 Engaging youth and local stakeholders to foster trust and political support 36 4 Conclusions and considerations 38 Policy priorities to support youth in cities and foster inclusive growth 38

Building the capacity to deliver youth-centred policies 34 Harnessing youth perspectives and digital tools for inclusive policy evaluation 35 Engaging youth and local stakeholders to foster trust and political support 36 4 Conclusions and considerations 38 Policy priorities to support youth in cities and foster inclusive growth 38 Enabling conditions to support sustained reductions youth exclusion in cities 39 Annex A. Trends and challenges affecting youth in EU cities 41 Annex B. EU recommendations and policies 46 References 47 Notes 556 

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FIGURES Figure A A.1. The share of young people declined in almost all EU countries 41 Figure A A.2. Demographic shifts are expected to play out unevenly across EU regions 42 Figure A A.3. Education and training offers a strong safeguard against youth long-term remaining outside the labour market long term and unemployment 43 Figure A A.4. Youth in the EU face higher risks of poverty than the total population 43 Figure A A.5. The share of NEETs in the EU was lowest in cities and highest in rural areas 44 Figure A A.6. Young people experience a disproportionate housing cost burden compared to the total population 44 Figure A A.7. Capital-city regions in the OECD are leading the shift toward greener jobs 45

BOXES Box A B.1. EU recommendations and policies to strengthen foundational and civic skills through integrated education systems 46 7

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Executive summary Addressing the challenges faced by young people in cities requires urgent, peo ple-centred, place-based and integrated action. Too often, policies remain fragmented across sectors and levels of government, failing to reflect the realities of youth. More effective responses depend on aligning education, employment, housing and service delivery around young people’s needs, supported by co -ordination mechanisms that

and integrated action. Too often, policies remain fragmented across sectors and levels of government, failing to reflect the realities of youth. More effective responses depend on aligning education, employment, housing and service delivery around young people’s needs, supported by co -ordination mechanisms that allow institutions to act jointly rather than in silos. Particular attention is need ed at key transition points, such as the move from school to work, between education cycles, or into independent living, when risks of exclusion are highest. Early and continuous intervention across these trans itions can prevent disadvantages from accumulating. Proactive outreach that brings policies and se rvices directly to where young people are, whether in schools, neighbourhoods, public spaces or online, is critical to reaching those most at risk of being left behind. The first chapter highlights that while cities offer opportunities, from dynamic labou r markets to access to tertiary education, many young people, particularly those from vulnerable backgrounds, s till face barriers to quality education, stable employment, affordable housing and essential servic es. About a quarter of young people in the EU (24.1%, or 17.3 million individuals) were at risk of pov erty or social exclusion, compared with 21.0% of the rest of the population. Unequal access to quality education across places shapes labour market prospects. In 2023, the share of adults with at most lower secondary education was highest in towns and suburbs (23.3%), compared with 21.0% in rural areas and 18.8% in cities. Young people also face greater difficulty securing stable and well-paid employment, with an un employment rate of 14.5%, more than double the total population rate (6.2%). Housing challenges remain signifi cant: 9.7% of young people living in households are overburdened by housing costs and 26. 5% live in overcrowded dwellings. Barriers to public infrastructure and services, including cost and lack of information, further limit opportunities. Climate change is set to disproportionately affect younger generations, who are expected to bear more than 80% of its long-term health and social burdens, especially in cities, underscoring the need

dwellings. Barriers to public infrastructure and services, including cost and lack of information, further limit opportunities. Climate change is set to disproportionately affect younger generations, who are expected to bear more than 80% of its long-term health and social burdens, especially in cities, underscoring the need for fair and inclusive climate action across generations. The second chapter outlines policy approaches and good practices to support young people in cities through holistic, person-centred and place-based responses, recognising youth as a critical li fe stage that shapes future opportunities and well-being. In education, tackling segregation an d discrimination can measurably improve outcomes. For example, Barcelona’s (Spain) Shock plan against segregation led to a 26.3% decrease in the Dissimilarity Index for socially disadvantaged students b etween 2018-2019 and 2023-2024. Strengthening transitions between education levels and from school to work throu gh continuous support, as well as high-quality vocational education and training (VET ) and work-based learning, is another lever for improving employment prospects. Across the EU, recent VET graduates who received work-based learning were more likely to be employed (84.3% in 2024) tha n those who did not (69.7%). Cities can also embed entrepreneurship and innovation in education to broaden career prospects. In Lisbon (Portugal), the Sensibilização para o Empreendedorismo e Inovação (SEED, Raising Awareness of Entrepreneurship and Innovation) programme delivered financial literacy training to over 700 s tudents in 2024/25. Youth centres can help cities reach those facing barriers. In Pärn u (Estonia), the youth innovation centre HUUB offers free workshops, mentoring and incubation to support y outh-led initiatives8 

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and retain local talent. Beyond jobs and skills, housing and services are decisi ve for youth stability. Cities are innovating with “housing plus support” models to support vulnerable young pe ople. Lyon’s (France)

ADVANCING INCLUSIVE GROWTH IN CITIES FOR YOUTH © OECD 2026

and retain local talent. Beyond jobs and skills, housing and services are decisi ve for youth stability. Cities are innovating with “housing plus support” models to support vulnerable young pe ople. Lyon’s (France) Logis Jeunes (Youth Homes) combines sliding leases with tailored tenancy support, helping young tenants secure long-term housing. Service and mobility policies can also improve ac cess to job opportunities. In Madrid (Spain), the abono joven (youth pass) is associated with a 23-percentage-point increase in the probability of finding a job within six months after layoff, with particularly strong effects for peripheral youth. Cities are also aligning youth policies with the green and digital transitions and with well-being agendas through climate literacy, sustainable urban design and youth participation. Finally, the third chapter shows that cities’ ability to deliver inclusive growth for young people depends on a set of enabling institutional and operational conditions: • Coherent multi-level governance: Clear allocation of responsibilities and stable institutional arrangements and structured dialogue across national, regional and local levels, support continuity and co-ordination of youth policies. For instance, France’s Conseil d’orientation des politiques de jeunesse (Youth Policy Advisory Council) brings national and local actors together to co-ordinate policy direction. • Inclusive and participatory policy design: Empowering young people in pol icy design and delivery strengthens relevance, legitimacy and innovation, with cities such as Ljubljana (Slovenia) coordinating cross-departmental action and consultation through its Youth Office. • Robust data systems: Integrated and disaggregated data systems enable cities to id entify needs, target support and track progress : Barcelona’s (Spain) Vulnerable Students Registry, combining education and social data, has improved targeting of disadvantaged pupils. • Sustainable financing: Blended financing models, including EU funds, publicprivate partnerships and innovative instruments such as social or sustainability-linked bonds, can scale up and stabilise youth investment. For example, the EU Youth Employment Initiative combines EU and national

education and social data, has improved targeting of disadvantaged pupils. • Sustainable financing: Blended financing models, including EU funds, publicprivate partnerships and innovative instruments such as social or sustainability-linked bonds, can scale up and stabilise youth investment. For example, the EU Youth Employment Initiative combines EU and national funding to reduce the rates of young people not in education, employment or training (NEET). • Strong local implementation capacity: Building technical capacity within local administrations, fostering cross-sectoral teams and encouraging experimentation are essential to trans late strategies into outcomes , as illustrated by multidisciplinary delivery teams in the Borough of Camden in London (United Kingdom). • Outcome-focused monitoring and evaluation and effective communication and leaders hip: Involving young people in monitoring and evaluation, and maintaining clear commu nication while including them in political leadership, can strengthen trust and accountabilit y as seen in participatory budgeting initiatives in Paris (France). 9

ADVANCING INCLUSIVE GROWTH IN CITIES FOR YOUTH © OECD 2026

Framing the issue Definitions of youth vary across organisations, countries or cities, reflecting diverse app roaches and realities. While some international organisations, such as the United Nations and the World Health Organization, define youth (or “young people”, terms u sed interchangeably) as individuals aged 15-24, both the EU and the OECD adopt a broader age range of 15-29. This policy paper fol lows the latter definition unless otherwise specified. Beyond age boundaries, youth is not a homogeneous group. It encompasses a wide s pectrum of experiences shaped by social, economic, cultural, health and geographical factors that can often intensify vulnerabilities when they overlap. Young people with a migrant background, young women, young LGBTIQ+ people, youth with disabilities and those from disadvantaged fa milies or living in deprived neighbourhoods frequently face specific challenges. These may include higher unemployment rates, discrimination on the labour market or limited access to affordable housing and quality education. For

LGBTIQ+ people, youth with disabilities and those from disadvantaged fa milies or living in deprived neighbourhoods frequently face specific challenges. These may include higher unemployment rates, discrimination on the labour market or limited access to affordable housing and quality education. For instance, ethnic minority youth, such as Roma youth in the EU, often encounter greater barriers in housing, education and employment and are statistically less likely to attain a univers ity degree than their peers (Gerőházi, Katona and Kollár, 2023[1]; Acar, 2018[2]). Supporting youth inclusion is particularly important in cities to ensure that urban growth and dynamism translate into opportunities for all. Although cities concentrate economic, educational and social opportunities, many young people struggle to fully access and benefit from them. Across the EU, youth are among the groups most at risk of poverty and vulnerability, especially in cities where they often face higher rates than the national average (Eurocities, 2020 [3]). In cities marked by stronger inequalities and spatial segregation, disadvantage experienced early in life is more likely to intensify over time (UPLIFT, 2022[4]). Trends and challenges affecting youth in EU cities Youth demographics in transition: challenges for cities and regions In 2024, there were 73 million young people aged 15-29 years in the EU (16.3% of tot al population), with an average age of 26.5 years within that age range. Across the EU, 46 TL3 1 regions out of 1 165 have a youth population representing at least one fifth of their total population. These regions, such as Byen København in Denmark (26.7% of total population), Overig Groningen in the Neth erlands (25.4%) and Heidelberg Stadtkreis in Germany (25.1%), were predominantly urban. They are concentrated in a small number of Member States 2 and are often characterised by a higher number of education institutions and stronger labour markets, which attract young people seeking education and employment opportunities. 1 Challenges, needs and

Heidelberg Stadtkreis in Germany (25.1%), were predominantly urban. They are concentrated in a small number of Member States 2 and are often characterised by a higher number of education institutions and stronger labour markets, which attract young people seeking education and employment opportunities. 1 Challenges, needs and opportunities for youth in cities10 

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The share of young people in the EU has steadily declined over the past 15 yea rs, dropping from 18.4% in 2010 to 17.2% in 2015 and 16.3% in 2024 and is projected to fall further to 15.1% by 2080 , according to Eurostat’s EUROPOP19 projection. This downward trend reflects persistently low and falling fertility rates combined with increasing life expectancy. Demographic shifts are expected to play out unevenly across territories. While the youth population is expanding rapidly in some EU regions, others see a shrinking youth population, deepening the spatial concentration of youth in a small number of regions and cities. Notably, all 29 TL3 regions with the largest projected increases in the share of young people between 2021 and 2050 (above 20%) are located in Germany, highlighting the country’s distinctive demographic dynamics and migration patterns, such as strong external immigration, especially from Syria (Figure A A.2). By contrast, the steepest projected declines are more geographic ally dispersed. 15 of the 30 EU regions with the largest projected drops in their youth share are located in Pol and and 5 in Italy. The sharpest decline is expected to occur in Noord-Drenthe in the Netherlands (- 37%) and in ChełmskoZamojski in Poland (- 32%). If unaddressed, these trends risk locking regions and cities into “talent development traps”, where limited opportunities for young people constrain skills formation and retention, ultimately exacerbating socio-economic challenges and widening territorial dis parities, illustrating the significant cost of inaction (European Commission, 2023 [5]).

development traps”, where limited opportunities for young people constrain skills formation and retention, ultimately exacerbating socio-economic challenges and widening territorial dis parities, illustrating the significant cost of inaction (European Commission, 2023 [5]). While youth mobility can open pathways to better educational, personal and ec onomic opportunities, it is unevenly distributed across regions. Peripheral and rural areas, as well as former industrial regions, often experience youth outmigration, resulting in “brain drain,” shrinking labour forces and demographic ageing, ultimately undermining the “right to stay”, meaning the ability of individuals to voluntarily remain in their local communities to build their future, rather than feeling compelled to relocat