According to our research, some 12% of young people in Germany between the ages of 17 and 19 are disconnected, i.e. not in school, unemployed, and not living with a partner. The percentage of disconnected youths has been on the rise since 2002. There is evidence that an adverse family environment is the most important variable for being disconnected. Early life adversity influences the development of cognitive and noncognitive skills as well as school and labour market outcomes. Macroeconomic factors also contribute to disconnectedness. Recessions are followed by an increase in the number of disconnected youth.