THE FUTURE OF THE SOCIAL DIMENSION IN EUROPE

European business would like to see a step change in EU social policy, which ensures that the social dimension of Europe develops in synergy with increased growth and competitiveness and that Europe embraces the potential of the future of work. 

A business environment which allows companies to create good jobs and be competitive globally is an absolute must to sustain our European way of life, to give workers and citizens opportunities to fulfil their potential, and to fight poverty and social exclusion. 

The way ahead: 

• Dynamic, inclusive and performing labour markets
• Social dialogue as a tool for managing change
• Reaping the benefits of digitalisation for companies, workers
• Tackling skills shortages by improving education and training systems
• Ensuring social aspects help not hinder the functioning of the single market
• Modernising social systems for future generations
• Sustainability policies contributing to EU global competitiveness 

Where do we stand?

• The economic and social situation in Europe has been improving over the last years. High levels of employment in many Member States is good news. Between 2013 and 2017, 12 million additional jobs were created in the EU and employment levels are at 73% (2018). However, unemployment is still high compared to other parts of the world (euro area unemployment is almost 8% compared to 3.8% in the US). Whilst poverty levels in some countries remain too high, between 2016 and 2017, 5 million less people were at risk of poverty or social exclusion.
• EU Member States have unparalleled investment in social protection compared to other parts of the world: 28% of GDP is spent on social protection in the EU, compared to just above 20% in Japan and below 20% in Australia or Canada. There are well developed social safety nets in Europe: 80% of workers in the EU have access to unemployment benefits - only 30% are potentially covered in the rest of the world.
• Companies operate in an increasingly challenging environment, faced with strong global competition, complex global value and supply chains, a race for talents, and increased diversity on labour markets. Only if companies are able to compete globally, they will be able to carry on creating decent, sustainable jobs, inclusive growth and wealth.
• Growing uncertainties such as global alliance shifts and rises in populism mean that the social achievements and progress in Europe cannot be taken for granted. Europe has to keep up with the changes in the world, in a way which upholds the values of our social market economy.
• Digitalisation is completely redefining human work as new technological solutions are being progressively introduced in companies to make production more efficient and to respond to more individualised customer preferences. With the changing skills needs, companies need individuals equipped with the right skills and incentives to take up the emerging job opportunities.
• Work remains the best safeguard against poverty and social exclusion. Work should remain a core value for people in Europe, not only providing an income, but also giving people meaning in life and personal fulfilment.