On Thursday 19 December, the European Commission published its annual report on labour markets and wage trends in Europe, according to a press release, which notes the positive results but warns of the risks ahead.
The EU labour market remained robust in 2023, with 5.5 million jobs created since 2019. Third country nationals, including Ukrainians, and people aged between 55 and 64 accounted for most of this increase.
According to the report, “the favourable labour market developments reflect improvements in the matching between job seekers and vacancies”.
In 2023, real wages also started to rise again. “Lower-income households were better protected, largely due to significant increases in statutory minimum wages that helped cushion the impact of high inflation on purchasing power of low-wage earners”, says the Commission.
The opportunities for older workers to keep their jobs are also increasing. “By 2030, there will be an additional 8.8 million workers between 55 and 68, partly due to recent pension reforms in EU Member States”.
However, the report warns that low productivity, widespread labour and skills shortages and an ageing population could, in the long term, undermine these recent positive changes. These problems were previously raised on 18 December, when the European Semester’ package was presented (see EUROPE 13548/18).
Link to the report: https://aeur.eu/f/ew0 (Original version in French by Solenn Paulic)