EU finds 51 million people could help solve labor shortages

Better job market access for women, older workers, migrants, and people with disabilities could help solve EU labor shortages and offset demographic changes that may shrink the workforce by 18 million people by 2050, according to the European Commission‘s 2025 Employment and Social Developments report. According to a press-release by the EC, about 51 million working-age people currently stay outside the EU labor market, with these four groups making up most of that number. Getting them into jobs would help reach the EU’s 78% employment target for 2030 while reducing poverty and building social unity.

The EU created 1.8 million new jobs in 2024, pushing employment up to 75.8% while unemployment dropped to a record low 5.9%. However, major gaps remain for key groups. Women’s work participation runs 10 percentage points below men’s, with 32 million women out of the workforce mainly due to unpaid care duties, limited childcare, and tax system problems. About 75% of mothers with young kids outside work cite care responsibilities as the main reason, compared to just 13% of fathers.

Nearly 20 million people aged 55-64 don’t work, often because of retirement rules, health issues, or inflexible jobs. Over 7 million migrants stay unemployed due to language barriers, unrecognized qualifications, discrimination, and red tape. They face the highest poverty risk at 38% despite bringing skills that could fill acute labor shortages in various sectors.

Of 44 million working-age people with disabilities, only 56.4% worked in 2024 compared to 84% of people without disabilities. Executive Vice-President Roxana Mînzatu said expanding childcare could boost women’s employment by up to 30% in some countries and lift EU GDP by 1.7%. The report shows quota systems, anti-discrimination rules, and targeted job placement work well for disability integration.