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. It can also offset the demographic changes that risk shrinking the EU’s workforce by up to 18 million by 2050.
The European Commission’s 2025 Employment and Social Developments in Europe (ESDE) report highlights that one-fifth of the working-age population, around 51 million people, are currently outside the EU labour market, with women, people aged 55–64, migrants, and persons with disabilities making up the vast majority. Facilitating access to the labour market would also contribute to reaching the EU’s 78% employment rate target for 2030. At the same time, it would improve social cohesion and support the EU’s 2030 poverty-reduction target.
In 2024, the EU created 1.8 million more jobs compared to the previous year, bringing the employment rate up to 75.8%, while the unemployment rate fell to a new historic low of 5.9%. Women’s labour participation in the EU remains 10 percentage points below men’s, with 32 million women outside the workforce, primarily due to unpaid care responsibilities, limited availability of childcare, and disincentives in tax-benefit systems.
Despite progress, nearly 20 million people aged 55–64 are not part of the EU’s labour market, often due to retirement rules, health issues, or insufficient flexibility at work. The report points out that pension reforms, phased retirement, expanded long-term care, training and career guidance can help keep more older workers active.
Over seven million migrants in the EU are currently out of the workforce for multiple reasons, including language difficulties, non-recognition of qualifications, discrimination, and administrative hurdles. Migrants face the highest risk of poverty of any workforce demographic (38%). Yet, they bring essential skills that can help address labour shortages in sectors with acute needs.
The report shows that well-designed tax incentives, along with job search support, language training and simpler work permits, especially when combined, can increase migrants’ participation in the labour force.
