This article discusses young people's transitions from school to work at a time when educational systems have become more closely connected to the economy than ever before. The serious situation of high unemployment, unstable employment conditions and poverty among young people and young adults in Europe is highlighted. Using Sweden as an illuminative example, it is argued that the increasing commercialisation and competition within the education sector add to the risks connected to school-to-work transitions. The associated shift to outcome-based curricula and focus on narrow competences and skills rather than a broad education including social, cultural and democratic elements, will provide young people with poor navigation instruments in this process. The need to analyse the long-term impact of the market-oriented culture on young people's self-understanding, orientations and choices is emphasized. (Contains 4 notes and 2 tables.)