The paper will discuss education and job opportunities of young people, aged 16-34, not in employment, education or training in Iceland and considering different situation by gender, age, residence, ethnicity and parental education. Data is based on own analysis of the Icelandic Labour Force Survey and an ad hoc module on entry of young people, aged 16-34, into the labour market in 2009, conducted by Statistics Iceland. Results show that this group of inactive youths are more likely than others to have low educational level, and their first job to be low skilled job when controlled for gender, age, residence, ethnicity, parental education and disability. Parental education and job searching method is not different compared to those who are active. There are various reasons for their inactivity, first job opportunities are lesser among non-Icelanders, but gender and residence affect if they continue to study or not. Iceland will be compared to other Nordic countries, Germany, Spain, Portugal and the UK based on published data from OECD and Eurstat.