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Labour market policies

The European Pillar of Social Rights Action Plan sets out to increase the employment rate of the population aged 20 to 64 to at least 78% by 2030. Inclusive labour market policies aimed at increasing the labour market participation of underrepresented groups such as older people, low-skilled people or persons with disabilities are needed to ensure inclusive employment growth. At the same time, Active Labour Market Policies (ALMPs) which aim to increase employment opportunities for jobseekers and to improve the matching between vacancies and the unemployed play a key role in addressing long-term unemployment and existing skills mismatches. Examples of ALMPs include training, job matching services, recruitment subsidies, direct job creation for public work schemes or special programmes aimed at ensuring transitions from school to work. Public Employment Services play a key role in delivering effective ALMPs and providing income support during periods of joblessness. 
 

Topic

Recent updates

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Company practices to tackle labour shortages

Explore our digital report summary. This report centres on the recruitment and retention measures that organisations have deployed to address labour shortages, based on 17 case studies in different sectors...

Data story

Eurofound research

Eurofound monitors structural changes in the labour market via its European Jobs Monitor (EJM) and European Restructuring Monitor (ERM), including the overview of legal instruments. Research investigates labour market dynamics, company practices, restructuring, and social partner involvement in addressing the policy-driven green transition, the advancing technological change and a global reconfiguration of supply chains. It aims to provide evidence to inform the understanding of the EU’s competitiveness and reinforce socioeconomic resilience.

This evidence on structural change in the labour market helps to inform labour market policies and industrial policy initiatives, offering knowledge on potential upgrading or polarisation of jobs, on how task requirements in jobs are changing, and on whether shifts in the employment structure are accelerating or slowing.

Investigating new forms of work, including digitally enabled such as platform work and ICT-based mobile work, helps to assess their prevalence over time, and how the opportunities or risks they create affect the employment and labour market prospects for people involved. Eurofound continues to update its Platform Economy Repository with information concerning the developments and regulation of employment in this type of economic activity.

The EU PolicyWatch database captures the measures introduced by governments and social partners in the Member States to alleviate the effects on businesses, workers and citizens of recent crises – COVID-19, the war in Ukraine and rising inflation. It also lists policies to support the digital and green transitions, as well companies that need to restructure. 

EU context

Article 4 of the European Pillar of Social Rights focuses on active support to employment. This supports the right to timely and tailor-made assistance to improve employment or self-employment prospects, the right of young people to continued education, apprenticeship, traineeship or a job offer within four months of becoming unemployed or leaving education via the Youth Guarantee, as well as the right of unemployed people to personalised, continuous and consistent support. In 2021, the European Commission issued a Recommendation for Effective Support to Employment.

In recent years, labour shortages have increasingly been the main factor affecting labour markets in the EU and beyond. In the aftermath of the COVID-19 pandemic the prevalence of labour shortages has become a key concern for governments and social partners alike. Key drivers of labour shortages include demographic change, job quality and the green and digital transition.

In March 2024, the European Commission presented an action plan to tackle labour and skills shortages, setting out key measures that the EU, Member States and social partners should take to reach its 2030 targets on skills and employment.

Key outputs

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This report provides updated evidence on the persistence of labour shortages amid declining levels of labour market slack in the EU and at Member State level. This serves as a...

10 rujna 2024
Publication
Research report
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During the pandemic, many young people had to change their plans for the future. While at the end of 2023 young people’s labour market situation was more favourable than it...

21 svibnja 2024
Publication
Research report
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While unemployment is still a huge challenge in Europe, some countries, sectors and occupations are experiencing labour shortages. This report explores various approaches to identifying labour shortages and maps national...

20 srpnja 2021
Publication
Research report
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The effect of the COVID-19 pandemic on the lives of individuals and societies, including on the economy and labour markets, is unprecedented. The impact of the global health emergency has...

24 lipnja 2020
Publication
Research report

Eurofound expert(s)

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Tina Weber is a research manager in Eurofound’s Working Life unit. Having previously shared her time between the Employment and Working Life units, her work has focused on labour...

Research manager,
Working life research unit
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Dragoș Adăscăliței is a research officer in the Employment unit at Eurofound. His current research focuses on topics related to the future of work, including the impact of...

Research officer,
Employment research unit
Publications results (152)

This Eurofound research paper explores the decarbonisation of residential heating through the adoption of heat pumps, a key component in the EU’s strategy to achieve carbon neutrality by 2050. Heat pumps offer a highly efficient alternative to traditional heating systems, leveraging renewable energy

30 September 2024

This report describes the implementation and changing features of job retention schemes in the EU between 2020 and 2022. In response to the COVID-19 health emergency, EU governments swiftly deployed job retention schemes to preserve employment, support businesses and maintain individual incomes.

23 September 2024

This report provides updated evidence on the persistence of labour shortages amid declining levels of labour market slack in the EU and at Member State level. This serves as a background to the main focus of the report, which is on organisational policies aimed at attracting workers to occupations

10 September 2024

During the pandemic, many young people had to change their plans for the future. While at the end of 2023 young people’s labour market situation was more favourable than it had been in recent years, many obstacles remained on their route to independence, such as the rising cost of living and

21 May 2024

The rise of the platform economy during the last decade is one of the main disrupting forces for European labour markets. While standard employment remains the norm, platforms are expanding their reach and diversifying into novel business models. In doing so, they are also attracting an increasing n

16 May 2023

On request by the Swedish Presidency of the Council of the European Union, Eurofound prepared a background paper as a basis for the discussion at the informal Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) meeting on 3-4 May 2023. The paper outlines some of the key challenges

04 May 2023

Kako se gospodarstva počinju oporavljati od pandemije bolesti COVID-19, manjak radne snage postaje sve očitiji unatoč utjecaja rata u Ukrajini na cijene energenata i sirovina. To podrazumijeva i manjak radne snage pogoršan krizom u određenim sektorima i zanimanjima u kojima je već neko vrijeme imao

28 March 2023

U prošlosti su političke rasprave o konvergenciji u EU-u jačale nakon krize. S obzirom na pandemiju bolesti COVID-19, svrha je ovog izvješća iznijeti pregled kretanja konvergencije u protekla dva desetljeća. Istraživanje započinje empirijskim istraživanjem gospodarske, socijalne i institucionalne

22 March 2023

The European Union Agencies Network on Scientific Advice (EU-ANSA) consists of technical and regulatory agencies that provide scientific advice to EU policymakers. This report demonstrates how EU-ANSA member Agencies are addressing the socioeconomic effects of sustainable development. It is based on

05 January 2022

The rapid rise of the platform economy has led to a marked transformation of European labour markets, and existing regulatory frameworks and voluntary initiatives have yet to catch up. While platform work offers opportunities for workers and employers and potentially contributes to innovation, econo

02 December 2021

Online resources results (200)

Company practices to tackle labour shortages

Explore our digital report summary. This report centres on the recruitment and retention measures that organisations have deployed to address labour shortages, based on 17 case studies in different sectors and across 13 Member States.

In this episode of Eurofound Talks, recorded for International Women's Day 2023, Mary McCaughey speaks with Eurofound Working Life researchers Jorge Cabrita and Viginta Ivaškaitė-Tamošiūnė about how, when paid and unpaid work are combined, women do eight full-time weeks more work than men per year

8 ožujka 2023
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Policies to support refugees from Ukraine

Following the Russian invasion of Ukraine, the mass immigration of refugees into the EU – over 5 million to date, according to the UNHCR – has put European societies under pressure. EU and national-level policymakers together with civil society reacted quickly to accommodate the waves of fleeing Ukr

EU level: Latest developments in working life Q2 2020

Activities of the European Commission and social partners regarding the COVID-19 pandemic, the high-level hearing on implementing the European Pillar of Social Rights and a fair EU minimum wage initiative are the main topics of interest in this article. This EU update reports on the latest

United Kingdom: latest working life developments Q2 2018

The social partners’ joint statement on the risk of a no-deal Brexit risk, launch of the first labour market enforcement strategy and a record low for workers’ strikes are the main topics of interest in this article. This country update reports on the latest developments in working life in the UK in

Slovakia: latest working life developments Q2 2018

An increase in wage supplements, easier access for people from countries outside the EU to join the Slovak labour market and new legislation for social enterprises are the main topics of interest in this article. This country update reports on the latest developments in working life in Slovakia in

France: latest working life developments Q2 2018

The adoption of labour market reforms, strikes in the transport sector and new leadership among the social partners are the main topics of interest in this article. This country update reports on the latest developments in working life in France in the second quarter of 2018.

Czech Republic: latest working life developments Q2 2018

The new government taking office, a new low for the unemployment rate, the end of cheap labour and a call for more foreign workers are the main topics of interest in this article. This country update reports on the latest developments in working life in the Czech Republic in the second quarter of

Finland: Latest working life developments – Q4 2017

The ongoing sectoral collective bargaining round, the government’s controversial active labour market policy, and proposed regulations on zero-hour contracts are the main topics of interest in this article. This country update reports on the latest developments in working life in Finland in the

Austria: Latest working life developments – Q4 2017

The general elections and the new federal government, major reforms planned in social and labour market policy, and wage increases of up to 3% are the main topics of interest in this article. This country update reports on the latest developments in working life in Austria in the fourth quarter of


Blogs results (10)
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The European Commission declared 2023 as the European Year of Skills, stating ‘Helping people get the right skills for quality jobs and helping companies, in particular small and medium enterprises, address skills shortages in the EU is what this year is all about.’

27 ožujka 2023
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We need to study and understand the blow Europe’s youth have suffered from the COVID-19 pandemic, in order to adjust recovery and resilience measures to their needs: without prioritising young people in the present, we have little hope for the future.

3 prosinca 2021
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Following the declines in employment rates and working hours across Europe in 2020, economies began to show signs of recovery during the first quarter of 2021. The gradual rekindling of economic activity has led to a surge in demand for workers and reawakened concerns over labour shortages. Difficul

20 srpnja 2021
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Decision-makers approached minimum wage setting for 2021 cautiously due to the economic uncertainty caused by the pandemic. Despite this, nominal statutory minimum wages rose in most Member States and the UK, although at lower rates than in recent years.

8 lipnja 2021
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​​​​​​​To date, close to six million workers in the EU have lost their jobs due to COVID-19. Many businesses have closed their doors forever or been pushed to the brink, bringing severe financial and psychological hardship to the individuals and families affected. However, the toll of the pandemic c

9 veljače 2021
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On 2 April, European Commission President Ursula von der Leyen announced a new fund of up to €100 billion to support EU Member States to introduce short-time working or similar schemes, including for the self-employed, in an effort to safeguard jobs during the COVID-19 pandemic. Known as SURE (Suppo

5 svibnja 2020
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At the very outset of its mandate, the new European Commission presented the European Green Deal, establishing the objective of becoming the first climate-neutral bloc in the world by 2050. The initiative emphasises the seriousness which the European Commission places on the climate and biodiversity

21 veljače 2020
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Economic disparities have been decreasing between EU member states over the past decade, but at the same time inequality has been growing within member states. Despite national level convergence, the gap in wealth and income between the rich and the poor is growing in most of Europe. Some of this ri

29 listopada 2019
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Unemployment in the EU is continuing to fall, with the rate approaching its 2008 low point. This is good news: the Europe 2020 target of 75% employment in the working age population is now in sight for many Member States. However, as unemployment reaches new lows, the opposite problem is emerging –

19 studenog 2018
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In the abstract, platform work is the matching of supply and demand for paid work through an online platform. In practice, most people are likely to have encountered it through big online platforms such as Uber, Deliveroo or Amazon Mechanical Turk. This is a new form employment that began to emerge

2 studenog 2018

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