Despite significant public funds being spent on decreasing youth unemployment in the EU, the level of young people out of work still remains as high as 23%. The research project ‘Strategic Transition for Youth Labour in Europe’ (STYLE) found that overeducation of youth reaches up to 33% in some Member States. With life-long learning and self-employment seen as some of the potential exit doors for jobless youth, what steps should the EU take to reduce youth unemployment in the long-run, consequently avoiding the social exclusion of youth and maintaining the competitiveness of its economy?