An increase in the number of young people who do not attend schools, get jobs or receive job training will probably pull down Japan's potential growth rate during the 2000-2005 period, according to a think tank report.

Dai-ichi Life Research Institute said Thursday in a report that the growth rate could be lowered by an annual average of 0.25 percentage point.

The report says that the increase in the number of such young people, dubbed NEETs -- not in education, employment or training -- will lead to a decrease in the working population and undermine production activities.