One in Five People Remain Outside the Labor Force in the European Union
According to the European Commission’s 2025 report, 51 million EU residents—mostly women, older adults, migrants, and people with disabilities—are not active in the workforce, highlighting key challenges to employment and economic growth.
A recent report from the European Commission reveals that one in five people in the European Union, equating to around 51 million individuals, are currently outside the labor market. Women, people aged 55 to 64, migrants, and those with disabilities make up the largest portions of this group. The study emphasizes the importance of effectively integrating these groups into the workforce to balance labor shortages caused by shifting demographics and to ease the growing demand for skilled employees.
While the EU aims to raise its workforce participation rate to 78% by 2030, significant barriers remain. Women’s participation lags behind men by 10 percentage points, with 32 million women still out of the workforce. Among the main contributing factors are the burden of household and caregiving duties, insufficient child care services, and certain tax and social security policies. Notably, nearly 75% of mothers with young children cite caregiving responsibilities as a primary reason for not working, compared to only 13% of fathers.
Despite these obstacles, the EU made progress in 2024, creating 1.8 million new jobs and pushing employment to 75.8% while unemployment hit a historic low at 5.9%. Expanding access to child care, supporting gradual retirement, enhanced training, and adopting inclusive hiring practices are among the measures highlighted for better participation from women, older adults, migrants, and people with disabilities. The report concludes that inclusive employment strategies are essential for boosting economic growth, reducing poverty, and strengthening social cohesion in the face of global economic competition.
