The best protection against poverty is employment. However, at the European level, this principle seems to be failing. While all European labour market indicators are positive, the number of families facing financial difficulties is alarmingly high. It is not only the quantity of jobs that matter, but also fair wages.
The European Commission recently released its annual report on employment and social developments. A quick look at the numbers may give readers a positive impression, despite the ongoing war in Ukraine and concerns over inflation.
The number of people employed in Europe has reached a record high. The unemployment rate (6.2 percent) is at its lowest and youth unemployment, though higher, has also decreased.
But don’t open the champagne just yet.
The inflation rate has taken a toll on the purchasing power of families. As companies have refused to ensure wages keep up with the cost of living, per capita income has declined. Among lower-income households, one-in-four families currently experiences financial stress.
That’s a 13 percent increase in a single year. Additionally, due to soaring energy prices this winter, nearly one in ten Europeans struggled to keep their homes warm.
The main explanation, as this WSI report shows, is the sudden surge in inflation compounded by lagging wage increases.
![As birthrates decline and the workforce empties out, “in some countries, [people] are obliged to retire,”](https://static.euobserver.com/2005/04/677e4ac7c530bd9e00eb0ac007326e19.jpg)