Foreword
In 2019 the Commission set a new course towards a fair and inclusive Europe that protects its citizens and creates opportunities. During this mandate, the Commission has set targets for higher employment, more training, and much less poverty; backed by targeted initiatives to implement the 20 principles of the European Pillar of Social Rights. EU legislation promoting pay transparency will help achieve equal pay for equal work for both women and men. EU-funded projects are empowering young people to acquire the skills they need, build up confidence, and land their first job. EU funds have also helped governments and companies to invest in workers’ training for today’s labour market. The EU Directive on adequate minimum wages has strengthened EU workers’ right to fair wages that provide for a decent standard of living. Workers in the platform economy will have more rights, social benefits and better working conditions thanks to a dedicated EU Directive. The recently adopted European Framework for quality apprenticeships will further support a highly-skilled and qualified workforce by helping young people enter the world of work. The action plan on tackling skills and labour shortages will help unlock the EU’s growth potential, support its competitiveness, and provide better opportunities for all. The European Child Guarantee ensures that children in need get all possible opportunities to break the cycle of disadvantage and thrive in life. The European Care Strategy aims to make quality care more accessible and more affordable. The European Platform to Combat Homelessness brings partners from across the EU together to tackle this most extreme form of social exclusion.
In 2023, the EU reached a historical high for employment and a historical low for unemployment, respectively at 75.3% and 6.1%. For the first time in history, the employment rate for women in the EU surpassed 70% in 2023, despite subdued growth. In addition, fewer people are now at risk of poverty and social exclusion.
As it examines the role social investment can play in promoting upward social convergence in the EU, the annual edition of our review Employment and Social Developments in Europe (ESDE) provides analytical evidence that can support further the development of a social Europe that protects. The recently launched Social Convergence Framework will further strengthen our actions to promote upward social convergence, by firmly embedding the analysis of Member States’ social indicators in the European Semester process.
ESDE’s analysis shows that social investment, including reforms and investments in up- and re-skilling, lifelong learning, active labour market policies, early childhood education and care, and active labour market policies, can contribute to upward social convergence in the EU. Affordable housing and social protection complement our social investment policies, thus also helping European citizens converge towards better labour markets and social outcomes. Our analysis confirms that ESF+ funded investments in skills can lead to both long-term economic gains and a catching-up of regions with initially low levels of GDP per capita through increased labour productivity. This is very welcome news, not least in a context of poor results in the latest PISA round measuring the basic skills of Europe’s 15-year-olds. It also provides analytical validation of our steadfast promotion of better skills and access to employment. According to ESDE, investing in active labour market policies such as measures to support access to employment, including for youth and women, as well as supporting labour market transitions, can help people find new jobs and keep them for longer. ESDE’s analysis also shows that social housing and housing allowances reduce poverty risks and contribute to narrowing the divergence of these risks across countries.
ESDE’s findings strengthen our commitment to fully implement the European Pillar of Social Rights and meet the 2030 EU headline targets on employment, skills, and poverty reduction. I encourage you to delve into the rich content of this report to learn how we have been strengthening a social Europe that includes and empowers everyone, enhances the competitiveness of our economy and resilience of our society, promotes the sustainability of our welfare systems and protects the vulnerable among us.
