Contemporary global economic contexts are shaped by a neo-liberal paradigm of hyper-individualism and meritocracy strongly influencing national policies in education and welfare. As social safety nets diminish, citizens are expected to be more personally accountable. This creates challenges for the poor and marginalised who are positionally disadvantaged in highly competitive neo-capitalist economies. Young people from such social categories are particularly vulnerable. Resource poor, many struggle to connect with schools and find meaning in a world that has relegated them to the margins. They make up the apparently growing numbers of "disengaged", "at risk", "dangerous" and "sick" youth who have become a focal point for official interventions that may be punitive and/or therapeutic or medical. Drawing upon the contrasting perspectives of teaching staff and youth workers in one Australian state, this article argues for a change in the way schooling authorities construct and respond to the phenomenon of schooling "disengagement".