Previous research suggests that young adults from out‐of‐home care (OHC) are at high risk of low education and unemployment. However, there are no studies on their risk of long‐term NEET (Not in Employment, Education or Training). This study compared the risk of NEET at age 21–23 among OHC youth across Denmark, Finland and Sweden, using register data for an entire birth cohort born in 1987. The Nordic countries share many features, but there are differences in the provision of after‐care support and in the linkage between the educational system and the labour market. The results show that about a fourth in Denmark and Sweden and a third in Finland were NEET, suggesting that the welfare systems were not able to compensate for the OHC youth’s childhood disadvantages. To a significant extent, the excess risk of NEET was attributed to poor school performance. Implications for research, policy and practice are discussed.