Better integration of under-represented groups - women, older people, migrants and people with disabilities - into the labour market could help mitigate skills and labour shortages and offset demographic changes that risk shrinking the European Union's workforce by up to 18 million by 2050, according to the Commission's 2025 Employment and Social Development in Europe (ESDE) report.
It highlights that a fifth of the working-age population - around 51 million people - are currently outside the EU labour market, the vast majority of whom are women, people of 55—64 years, migrants and people with disabilities. Facilitating access to the labour market would also contribute to achieving the EU's target of an employment rate of 78% for 2030. At the same time, it would improve social cohesion and support the EU's target of reducing poverty by 2030.
It is noted that in 2024 the EU created 1.8 million more jobs compared to the previous year. With them, the employment rate reached 75.8% and the unemployment rate fell to a new historical low of 5.9%.
Women's labour market participation in the EU remains 10% lower than that of men, with 32 million women outside the labour force, mainly due to unpaid care responsibilities, limited availability of childcare and disincentives in tax and social security systems. Around 75% of mothers of young children outside the workforce cite caring responsibilities as the main reason, compared to just 13% of fathers.
The report shows that expanding childcare could increase women's employment rates in some Member States by up to 30% and boost EU GDP by up to 1.7%.
Despite progress, nearly 20 million people aged 55-64 are not part of the EU labour market, often due to retirement rules, health problems or insufficient flexibility at work.
It is said that pension reforms, phased retirement, extended long-term care, training and career guidance can help older workers stay active.
Currently, over seven million migrants in the EU are outside the workforce for a variety of reasons - language barriers, non-recognition of qualifications, discrimination and administrative obstacles. Migrants face the highest risk of poverty of all demographic groups in the workforce (38%). However, they provide essential skills that can help address labour shortages in sectors with acute needs.
The report shows that well-designed tax incentives, together with job search support, language training and simpler work permits, especially when combined, can increase migrant participation in the workforce.
Of the 44 million working-age people with disabilities, 56.4% worked last year — up from 55.6 in 2022 — compared to 84% of people without disabilities. The report notes that quota schemes, anti-discrimination measures and targeted job placement are effective tools for their integration.
It is found that quota schemes, anti-discrimination measures and targeted job placement are effective tools for their integration.