By the EESC's Workers' Group

Poverty has become an undeniable reality in Europe, with over 1 in 5 households facing the risk of poverty or social exclusion. The EU's current policy agenda, driven by deregulation and competitiveness goals, starkly contrasts with citizens' pressing concerns. A recent Eurobarometer survey underscores this disconnect, revealing that many working people are finding it increasingly difficult to afford basic necessities such as housing, heating, and food due to soaring living costs.

The quality of employment is a critical factor in determining people's living conditions. Having a job does not guarantee protection against poverty. In 2023, 8.3% of the EU-27 working-age population lived at risk of poverty, with incomes below the poverty threshold. Certain groups are disproportionately affected, such as workers with precarious contracts, and young people who are often trapped in low-paid jobs and vulnerable to exploitative practises.

The prevalence of in-work poverty highlights the need for better job quality, fair wages, and stronger social protections to ensure that employment provides a pathway out of poverty. Europe needs a proactive social agenda pushing for legislative initiatives, investments, and action programmes necessary to ensure quality jobs across all sectors and regions. This includes the implementation of key existing legislation such as the Minimum Wage Directive, which, if properly applied, will not only ensure that basic rates of pay meet the cost of living but also that more workers benefit from genuinely fair wages negotiated through collective bargaining.

The European Pillar of Social Rights (EPSR), established in 2017, seeks to uphold fairness, inclusivity, and equal opportunities across Europe. Effective implementation of its action plan is crucial for addressing poverty and enhancing living standards. To assess  progress, the EESC's Workers' Group commissioned a study evaluating the state of implementation of the EPSR and its Action Plan in 2024, focusing on directives central to the EPSR framework, such as the Transparent and Predictable Working Conditions Directive, the Work-Life Balance Directive, the Adequate Minimum Wages Directive, and the Gender Balance on Company Boards Directive. Its results show that some progress has been achieved, but much work remains ahead of us.