The employment and social impact of the global financial and sovereign European crises has been particularly severe in the Euro-Mediterranean region. Southern, Eastern and Northern Mediterranean countries have all been experiencing a prolonged employment crisis, whereas the improving employment trend in Northern European countries and related attractiveness for unemployed individuals across the region underpins unprecedented migratory pressures. This policy paper first delves into the challenge of youth unemployment in the Mediterranean region, explains the underlying reasons from a labour supply and demand and provides recommendations on how further regional integration can tackle this challenge.