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Employment policies tend to focus on unemployed people, but evidence indicates that many people who are economically inactive also have labour market potential. This report examines groups within the inactive population that find it difficult to enter or re-enter the labour market and explores the reasons why. It maps the characteristics and living conditions of these groups, discusses their willingness to work and examines the barriers that prevent them from doing so. The report also looks at strategies being implemented by Member States to promote the inclusion of those outside the labour market. It highlights that many inactive people would like to work in some capacity, particularly students and homemakers. Stressing the importance of focusing on the specific needs of the inactive population in designing and implementing effective strategies for their labour market integration, the report argues that Member States should fully implement the 2008 European Commission Recommendation on the active inclusion of people excluded from the labour market.