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REPORT (2023/2116(INI))

On the European Semester for economic policy coordination: employment and social priorities for 2024

A-9-2024-0050

Committee on Employment and Social Affairs · Rapporteur: Dragoş Pîslaru

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Parliament's resolution on the European Semester sets out employment and social priorities for 2024. It calls for investment in skills and quality jobs, an EU directive on adequate minimum income, social conditionality in EU funds, and a revised, more democratic Semester with a stronger role for Parliament and social partners. It finds that the labour market performed strongly but that real wages fell, poverty risks persist for women, young people and the low-skilled, and the twin transition and demographic change could widen regional disparities. It welcomes the new social convergence framework and asks for it to be integrated into the Semester from the 2025 cycle, with social divergence risks reflected in country-specific recommendations and fiscal adjustment paths.

Committee position. The Committee on Employment and Social Affairs proposes a resolution setting out employment and social priorities for the 2024 European Semester, calling for investment in skills and quality jobs, an EU directive on adequate minimum income, social conditionality in EU funds, and a more democratic Semester with a stronger role for Parliament and social partners.

Key points

  1. Sustainable growth should fight poverty, reduce inequalities and create decent jobs with adequate wages, while regulating artificial intelligence at work and aligning with the Sustainable Development Goals and the European Pillar of Social Rights.
  2. Member States and training providers should improve cooperation with social partners, public authorities and business to identify and forecast skills needs, and working conditions should be monitored through regular EU-wide surveys.
  3. Parliament calls for investment in inclusive, subsidised education and training, an individual right to lifelong learning at no cost to workers, and tailor-made training for vulnerable groups such as older workers, people with disabilities and third country nationals.
  4. It asks the Commission and Member States to improve access to quality employment for groups at higher risk of poverty, to study good practices against long-term unemployment, and to focus on young people and children.
  5. It calls for an EU directive on adequate minimum incomes, gender-sensitive policies to include women in the green and digital sectors, and a European framework for upward wage convergence and equal pay for work of equal value.
  6. It says good-quality jobs and retention strategies attract skilled workers, asks employers to invest in workers, and calls on Member States to swiftly implement the Adequate Minimum Wages Directive and recognise skills and qualifications, including those of non-EU nationals.
  7. Parliament supports more EU funds for social objectives and future-oriented investments in the just green and digital transitions, with less fragmented and less bureaucratic financial instruments, and technical support for SMEs and start-ups.
  8. EU fiscal rules should allow reforms and public investment in the digital and zero-carbon transition and in the European Pillar of Social Rights, with distributional impact assessment and more flexible adjustment paths for smaller or more indebted Member States.
  9. Member States should use their recovery and resilience plans, medium-term fiscal-structural plans and national Child Guarantee action plans to make socially impactful reforms and investments, and ensure affordable, accessible social services for vulnerable groups.
  10. It calls for social conditionality in EU fund allocation rules, a possible revision of the Public Procurement Directive to strengthen the social clause, and promotion of collective bargaining and social dialogue through the European Semester and country-specific recommendations.
  11. On the Commission's economic governance proposals, Parliament asks for an assessment of the expenditures, reforms and investments needed for EU priorities and a new system for excessive deficit calculations that increases fairness and social resilience.
  12. It calls for an economic governance architecture reflecting economic, social and environmental objectives, based on transparency, accountability, solidarity, social justice, gender equality and quality public services, with regional and local dimensions.

Who is affected

  • Workers, especially low and middle-wage earners, young people, women, people with disabilities and third country nationals, who would gain training, income and employment protections.
  • Member States, which are asked to implement the Child Guarantee, Youth Guarantee, Adequate Minimum Wages Directive and to remove legislation hampering collective bargaining.
  • Employers and SMEs, asked to invest in workers, offer decent jobs and receive technical support for training and recruitment.
  • The Commission, asked to promote distributional impact assessment, social conditionality, collective bargaining and an EU social taxonomy.
  • Social partners, trade unions and civil society organisations, whose involvement in the European Semester should be strengthened.

Figures and deadlines

  • Employment growth in the EU projected at 1.0 % this year, easing to 0.4 % in both 2024 and 2025.
  • Unemployment rate expected to remain broadly stable at 6.0 % in 2023 and 2024 and edge down to 5.9 % in 2025.
  • Real wages in the EU decreased by 3.7 % in 2022.
  • 61 % of unemployed people received no benefits or assistance in the EU in 2022.
  • EU debt-to-GDP ratio projected at 79 % for 2024 and 2025.
  • Employment level of 74.6 % and a low level of 37.4 % in 2016 for adult learning, against the 2030 target of 60 %.
  • Fit for 55 climate package estimated to lead to a net creation of 204 000 jobs in the EU over the 2019–2030 period.
  • According to the OECD, 26.7 % of the total workforce of its member countries were in jobs at high risk of automation in 2019.

Legal basis: Articles 9 and 149 of the Treaty on the Functioning of the European Union, and Article 3 of the Treaty on European Union.