Europe’s labour market continues to show resilience, maintaining low unemployment levels even as employment growth slows. According to the latest European Commission report, employment rose by 0.8% in 2024 compared to 1.2% in 2023, due to economic pressures and geopolitical instability. Nevertheless, Europe’s unemployment rate remains close to its all-time low.
A Strong and Adaptable Social Model
“Europe’s social and employment model is strong and adaptable. This report shows welcome progress on wages, but we must not be complacent – we need to do more to strengthen workers’ purchasing power to help tackle the cost-of-living crisis. The important role of minimum wages shows that concrete measures can benefit workers, employers, and the economy as a whole. We must continue to protect people and invest in them – this helps build a resilient Europe where everyone can benefit from economic progress,” said Roxana Mînzatu, Executive Vice-President for Social Rights, Skills, Quality Jobs, and Training.
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While wages increased by 2.7% in 2024 and are expected to surpass pre-pandemic levels by the end of the year, one in five workers in the EU still holds a low-paid job. The report highlights that raising minimum wages can help low-income earners cope with living costs.
The European Commission also stresses the importance of initiatives aimed at improving productivity and job quality, which are key to maintaining high wages and competitiveness. These include the Minimum Wage Directive, the Competitiveness Compass, and the upcoming Quality Jobs Roadmap.
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