It is important that young individuals are engaged with employment, education or training. This is essential for economic growth, social inclusion and long term development.
Below we can see the correlation between the rate of youth not in education, employment or training against the human development index of it’s respective country.
Evidently, as the NEET rates decrease, the HDI increases indicating that active engagement of reasonable productive activities contribute to the quality of life measured by the HDI.
To better understand our data, we can interpret the relationship via a simple linear regression model. With this model we can define quantitative outcomes for our target goals. In the case of Indonesia, reducing their NEET rate from 23% to 15%, we can expect their HDI to increase to 0.728 from 0.760.
Of course, it would be inaccurate to conclude that their HDI will increase to 0.760, because statistically it will be unlikely. To grasp a better quantitative understanding of our target outcomes we can look at our confidence intervals.
Above, we can see the 95% confidence interval plotted on the graph. Based on this statistical measurement, we can conclude that if Indonesia is to reduce their NEET rate by 7.4%, then, with a 95% confidence, their HDI will fall in the range of 0.68 and 0.75.