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The present study aims to reveal common and diverging trends in the development of pedagogical competences of vocational education and training (VET) teachers and trainers in Italy and Lithuania.

A structured survey was administered to Italian and Lithuanian teachers. The collected data were analysed and compared.

Results show that there are many common challenges and problems in the development of pedagogical competencies of the VET teachers in both countries; e.g.: the marginalisation of the VET teacher's work and working conditions, especially the dissatisfying wages and poor career opportunities, and the absent or weak institutionalisation of the VET teacher's qualifications and training.

The emerged results can be useful for directors of VET-centres and VET-schools to manage training and pedagogical growth of teachers both in Italy and in Lithuania. Moreover, the outputs can be considered as a set of suggestions also by the policymakers both at national and European level.

The paper seeks to disclose the features and implications of the neoliberal VET and employment policy agendas for the social and institutional VET ecosystems and the integration of at-risk youth in the labour market in the Baltic countries.

The research is based on the comparative policy analysis approach with reference to the theories of social and skill formation ecosystems and the historical institutionalism perspective.

The research has revealed three interconnected and alternately/simultaneously applied development pathways in the skill formation and vocational education of at-risk youth in the Baltic countries: (1) the market-oriented approach based on fostering immediate employability based on the momentary skills needs in the economy; (2) the state-assistance approach based on ensuring equal access to the VET and employment services by the state and (3) the approach of systemic support to socially disadvantaged or at-risk young people in developing their capabilities.

The originality of the paper lies in a new, holistic and comparative perspective in analysing the implications of the “Baltic neoliberalism” for the development of skill formation systems, VET and employment of at-risk youth in this region.