The European labour market remains resilient, with low unemployment levels, despite a decline in employment growth, according to the European Commission’s latest report. In 2024, job growth decreased to 0.8%, compared to 1.2% in 2023, as a result of economic pressure and geopolitical instability. Nevertheless, the unemployment rate in Europe remains near its record low.
Despite welcomed progress over the last decade which saw certain sectors experience significant rises in pay, one in five workers remain in low-paying jobs. In 2024, wages rose by 2.7%; they are expected to exceed pre-pandemic levels in most Member States by the end of the year. The report highlighted that measures such as increased minimum wages can support low-wage earners with their cost of living.
The report emphasises the need for enhanced initiatives to improve productivity and job quality, which are essential for maintaining high wages and competitiveness.
EU initiatives such as the Minimum Wage Directive, the Competitiveness Compass and the forthcoming Quality Jobs Road Map aim to promote fair income, skills development and innovation-led growth.
“Europe’s social and employment model is strong and adaptable. This report shows welcomed progress in wages, but we must not be complacent – we need to do more to increase the purchasing power of workers to help tackle the cost of living crisis. The important role of minimum wages,point to concrete measures that can benefit workers, employers and the wider economy. We must continue protecting and investing in people – this helps build a resilient Europe where everyone in society can benefit from economic progress” said Social Rights and Skills, Quality Jobs and Preparedness Executive Vice President Roxana Mînzatu.
