Employment and Tralnlng DaprtmcMt, International Labour Mce, GenevaThis article was prepared as a contribution to the lL0s Action Programme on Youth Unemployment. It presents an overview of the youth unemployment problem and youth employment policy principallyfrom a European perspective, although it is hoped that much of the comment and analysis is relevant to a far broader range of countries. In thejirst section, which considers the nature and causes of youth unemployment, it is shown that its basic cause is aggregate demand rather than high youth wages or the size of the youth cohort, and suggests that a successful strategy for dealing with the problem must take this into account. In the second section, dealing principally with the examples of Germany and the United Kingdom, a number offactors are ident$ed which influence the effectiveness of youth employment policy. In particular, it is found that precise targeting of programmes and the involvement of employers' and workers' organizations, as well as government, in the design and implementation of policy are both important determinants of an effective policy. A third section attempts to set the analysis in a more general context.is article presents an overview of the T youth unemployment problem and youth employment policy principally from the European perspective, although it is hoped that much of the comment and analysis is relevant to a far broader range of countries. Its intention is to raise issues rather than provide a policy blueprint.