“Better integrating underrepresented groups – such as women, older people, migrants and persons with disabilities – into the job market can help to mitigate skills and labour shortages and offset the demographic changes that risk shrinking the EU’s workforce by up to 18 million by 2050,” stressed the European Commission’s 2025 ‘Employment and Social Developments in Europe’ (ESDE) report on Tuesday, 16 September.
The report notes that one-fifth of the working-age population, that being around 51 million people, are currently not in the EU labour market, with women, people aged 55–64, migrants, and people with disabilities constituting the vast majority. Facilitating access to the labour market would also help achieve the EU’s goal of having a 78% employment rate by 2030. In a press release, the European Commission comments that this would simultaneously improve social cohesion and support the EU’s goal of reducing poverty by then.
The report draws several lessons [from its findings]. In 2024, the EU created 1.8 million more jobs compared to the previous year, bringing the employment rate up to 75.8%; however, women’s participation in the EU labour market remains 10 percentage points lower than men’s, with 32 million women not in the workforce.
This is mainly due to unpaid family responsibilities, limited availability of childcare services, and disincentives in tax and social systems. Around 75% of mothers of young children who are not in the workforce cite family duties as the main reason, compared to just 13% of fathers.
The report shows that the development of childcare services could increase women’s employment rate up to 30% in certain Member States and boost the EU’s GDP up to 1.7%.
Despite the progress made, almost 20 million people aged 55–64 are not part of the EU labour market—often due to retirement rules, health problems, or a lack of flexibility at work. The report stresses that pension reforms, phased retirement, expanded long-term care, training, and career guidance can help keep more older workers gainfully employed.
Over seven million migrants in the EU are currently not working for various reasons, including language difficulties, non-recognition of their qualifications, discrimination, and administrative obstacles. Of all demographic groups, migrants are most at risk of poverty (38%).
The report shows that well-designed tax incentives together with job-search support, language training, and simplified work permits, especially when these are combined, can increase migrants’ participation in the labour market.
The report adds that as for the 44 million people with disabilities who are working age (56.4% were working in 2024, compared to 55.6% in 2022), quota schemes, anti-discrimination measures, and targeted placement are effective tools in integrating these individuals [into the workforce].
Link to the report: https://aeur.eu/f/ig8 (Original version in French by Solenn Paulic)