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Working poor

Individuals are at risk of in-work poverty when their equivalised yearly disposable income is below 60% of the national household median income level. The working poor represent a substantial group in Europe. Latest Eurostat figures show that in 2019, 9% of all workers lived in households that are at risk of poverty. Factors contributing to working poverty are low pay, household characteristics, quality of employment and gender, and other individual characteristics.

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Recent updates

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While the number of employees earning the minimum wage has increased across Europe over the last decade, spurred by significant minimum wage hikes, a clear gender divide emerges, with minimum...

Blog

Eurofound research

Eurofound has researched the development of in-work poverty in the EU since 2008. Research looked at the social ramifications of in-work poverty by describing the well-being and living conditions of the working poor. The study finds that in-work poverty is linked with lower levels of subjective and mental well-being, lower life satisfaction, as well as feelings of social exclusion, not to mention problems with accommodation.

The research assessed what Member States have done to alleviate in-work poverty and follows up on an earlier study which looked at the characteristics of the working poor in Europe, as well as the main policies and social partner views in relation to addressing the issue.

A living wage has been defined as a measure of income that allows an employee a basic but socially acceptable standard of living. Eurofound has compiled a practical guide to the living wage concept. 

The COVID-19 crisis had a significant impact on wages and wage setting across Europe in 2020. It seems to have particularly affected low-wage workers, occupations and sectors. 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.

During economic downturns, unemployment is the main driver behind growing income inequalities, as shown by previous Eurofound research during the Great Recession.

Key outputs

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A living wage has been defined as a measure of income that allows an employee a basic but socially acceptable standard of living. In recent decades, living wage initiatives have...

30 November 2018
Publication
Research report
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The ‘working poor’ are a substantial group, the latest estimate putting 10% of European workers at risk of poverty, up from 8% in 2007. This report describes the development of...

5 September 2017
Publication
Research report
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This report aims to improve understanding of the true cost of inadequate housing to EU Member States and to suggest policy initiatives that might help address its social and financial...

4 August 2016
Publication
Research report
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Being in work greatly reduces the risk of poverty. Nevertheless, in the European Union, 8% of the employed population fell into the category of ‘working poor’ in 2007, in the...

2 February 2011
Publication
Research report

EU context

EU labour markets are facing an increasing share of low-paid and low-skilled occupations, the erosion of traditional collective bargaining structures in some countries, and an increasing number of people at risk of poverty. 

The European Pillar of Social Rights, adopted in 2017, sets out 20 key principles and rights essential for fair and well-functioning labour markets and social protection systems. It explicitly recognises the need for policies and measures to tackle in-work poverty and inequality. On 4 March 2021, the European Commission presented its action plan to fully implement the Pillar, turning the principles into concrete actions to benefit EU citizens, while also supporting the recovery from the impact of COVID-19. It proposes a new target for the EU to reduce the number of people at risk of poverty or social exclusion by at least 15 million by 2030.

 

European Industrial Relations Dictionary 

Eurofound expert(s)

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Daphne Ahrendt is a senior research manager in the Social Policies unit at Eurofound. Since joining Eurofound in 2013, her work has covered a broad range of social policy areas. At...

Senior research manager,
Social policies research unit
Publications results (17)

The strict public health restrictions implemented by governments in 2020 to control the COVID-19 pandemic abruptly changed working life and continued to shape it over the two years that followed. Between March and November 2021, over 70,000 interviews were carried out in 36 countries by the European

29 November 2022

In collecting information on essential services, the European Commission requested Eurofound to provide input on certain aspects of existing and planned measures in the Member States to improve access to essential services in reference to Principle 20 of the European Pillar of Social Rights. For

07 September 2022

This report summarises how minimum wage rates for 2021 were set during 2020 – the year marked by the COVID-19 pandemic. It reviews the difficulties faced by national decision-makers and how they reacted to the challenges of the economic and social fall-out of the pandemic when making decisions regar

10 June 2021

The EU strives for the upward convergence of its Member States, where their performance improves and gaps between them decrease. Nearly a decade after the Great Recession, the COVID-19 crisis has again put this objective under pressure. This policy brief focuses on convergence in material well-being

08 December 2020

This report, as part of an annual series on minimum wages, summarises the key developments during 2019 and early 2020 around the EU initiative on fair wages and puts the national debates on setting the rates for 2020 and beyond in this context. The report features how minimum wages were set and the

04 June 2020

A living wage has been defined as a measure of income that allows an employee a basic but socially acceptable standard of living. In recent decades, living wage initiatives have emerged in a small number of mainly English-speaking countries, including the UK and Ireland. These initiatives have

30 November 2018

The ‘working poor’ are a substantial group, the latest estimate putting 10% of European workers at risk of poverty, up from 8% in 2007. This report describes the development of in-work poverty in the EU since the crisis of 2008, picking up where an earlier Eurofound report on this subject, published

05 September 2017

In 2016, somewhat later than in other developed economies, the EU recovered all the net employment losses sustained since the global financial crisis. Employment growth since 2013 has been only modestly skewed towards well-paid jobs; growth has been robust in low-paid and mid-paid jobs too. Newer

26 June 2017

Low-wage jobs have been a focus of debate in six countries across Europe during 2016. However, the issues discussed have reflected differing national concerns. For some countries, the key issue is the integration of migrants into the labour market; for others, how to stimulate job creation and

23 December 2016

This report aims to improve understanding of the true cost of inadequate housing to EU Member States and to suggest policy initiatives that might help address its social and financial consequences.

04 August 2016

Online resources results (33)

Czech Republic: Latest working life developments – Q4 2017

New employment strategies to address labour shortages, the post-election political shift in the Chamber of Deputies and an award-winning documentary on working conditions are the main points of interest in this article. This country update reports on the latest developments in working life in the

United Kingdom: Latest working life developments – Q1 2017

The latest developments on Brexit, employment rights following the UK’s exit, figures on zero-hours contracts and in-work poverty, and legal developments on the ‘gig economy’ are the main topics of interest in this article. This country update reports on the latest developments in working life in

Norway: Low-paid workers fall behind

Most workers in Norway have had a substantial increase in their real wages in the past 15 years. However, a new report shows that low-paid workers – mostly found in the private service sector – have not had any rise in real wages in the last seven years and that wage inequality is growing.

Hungary: Latest working life developments – Q3 2016

Proposals on how to tackle labour shortages, a strike by municipal employees for higher wages, and mounting tensions around reforms to education and vocational training are the main topics of interest in this article. This country update reports on the latest developments in working life in Hungary

Poland: Polish employees pessimistic about career prospects

Polish employees are pessimistic about their career prospects and employers are looking into recruiting migrant workers to fill labour gaps.

Spain: Latest working life developments – Q2 2016

A small rise in employment, the issue of pensions, and efforts to form a new coalition government in the wake of the June General Election are the main topics of interest in this article. This country update reports on the latest developments in working life in Spain in the second quarter of 2016..

Sweden: No signs of lowered entry-level wages in 2016 bargaining round

In preparation for the 2016 wage bargaining round, debates on how to reduce unemployment among low-skilled workers and new immigrants dominated the news in Sweden. Suggestions included lowering minimum wages and introducing so-called ‘simple jobs’. However, the debates had little impact on the

United Kingdom: National living wage comes into force

A statutory ‘national living wage’ comes into force in the United Kingdom on 1 April 2016 and will be phased in over four years, with the aim of reaching 60% of median UK earnings by 2020. Trade unions have welcomed the move while employer groups have expressed concern about some businesses’ ability

Austria: White-collar union campaigns to increase the minimum wage

The white-collar union GPA-djp has called for a gross monthly minimum wage of €1,700 for full-time work to be implemented in all (sectoral) collective agreements.

Italy: Economically dependent self-employed work in the Jobs Act

Labour law reforms under the Jobs Act have dispensed with new job contracts based on one or more specific projects. From 2016, this type of contract will be assimilated into another type of employment contract. Workers whose contracts are expiring are entitled to receive an income support measure


Blogs results (5)
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While the number of employees earning the minimum wage has increased across Europe over the last decade, spurred by significant minimum wage hikes, a clear gender divide emerges, with minimum wage earners more likely to be women. Minimum wage earners are also more likely to live in materially

26 October 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.

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The coronavirus disease (Covid-19) is having drastic consequences for the world of work. In most European countries workers who are not delivering essential ‘frontline’ services are being asked to stay home. Unfortunately many are out of work, while many of those who are not are minimum-wage and low

1 April 2020
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In-work poverty increased during the economic and financial crisis that hit European shores in 2008. By 2014, ten per cent of European workers were at risk of poverty, up from eight per cent in 2007. Ten per cent is a significant figure: the working poor represent a substantial group that can’t be

13 October 2017
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More than one in 10 employees in the EU are employed on temporary contracts, but a majority of them would prefer a permanent contract. Temporary contracts help employers to manage their labour demand, but there are downsides for employees, such as job insecurity and lower pay.

19 February 2016

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