The purpose of this paper is to analyse the determinants of youth unemployment in the European Union and to compare the Member States in terms of youth labour market performance. Youth unemployment is a delicate problem given the fact that young people represent an exceptional resource for society, but labour market inefficiencies are preventing the maximum use of their potential. There is a high interest among researchers and policy makers to understand the factors that influence youth unemployment and the link between youth unemployment and various macroeconomic and socioeconomic indicators. The present study will address this issue using a panel data econometric model. Also, the Data Envelopment Analysis method will be used in order to rank the Member States and to identify the top performers on youth labour market – countries that demonstrate effective labour market policies.