EU Social Report Highlights: Progress and challenges in poverty reduction
What is the social situation in Europe? The Social Protection Committee (SPC) has published its 2024 Annual Report, providing analysis and recommendations on social protection systems. The Committee is an advisory policy committee to the Ministers in the Employment and Social Affairs Council (EPSCO).
This report contributes directly to the social dimension of theEuropean Semester, emphasising both progress and remaining challenges in areas such as poverty reduction, child poverty, employment, health, and access to housing.
Limited progress in poverty reduction
Since 2019, the number of people at risk of poverty or social exclusion (AROPE) in the EU has decreased by 1.6 million. However, this positive trend is overshadowed by an increase of0.6 million in child poverty.The report stresses the need for Member States to:
- expand access to affordable, high-quality early childhood education and care.
- fully implement the European Child Guarantee.
On a more positive note, several countries report decreased AROPE rates for persons with disabilities, suggesting improved protections against rising living costs. Despite this, Member States must accelerate efforts to meet the poverty reduction targets outlined in the European Pillar of Social Rights Action Plan.
Positive labour market development
Employment continued to rise in 2023 despite slower economic growth. Household incomes saw modest improvements as inflation eased compared to 2022. Key trends included:
- reduced joblessness among households.
- higher employment rates for older workers.
- better youth employment rates in certain Member States.
However, challenges remain:
- social benefits are proving less effective.
- poverty risks for jobless households are increasing.
- rising housing costs continue to strain households.
- child poverty and material deprivation are worsening.
These issues highlight ongoing weaknesses in social protection systems across the EU.
Long-term care
This year, the report focuses on the progress made by Member states in implementing the Council Recommendation on access to affordable, high-quality long-term care (LTC). While most countries are actively pursuing reforms and investments, key challenges persist including:
- insufficient funding.
- limited workforce capacity.
- service availability.
- quality of services.
- coordination of care.
Additionally, there are significant regional disparities. The overall healthcare situation remains concerning with a third of Member States reporting unmet medical care needs, and half facing challenges in accessing healthcare.
Access to housing
To improve housing affordability, some Member States have adopted holistic approaches, with further actions planned to strengthen the provision of adequate housing, including social housing. However, key issues remain such as:
- high costs in certain regions.
- long waiting times for social housing.
- lack of inclusivity in housing policies.
Tackling these challenges will require a combination of stronger national legal frameworks and increased funding and financing mechanisms.
Want to Learn More?
Discover the social situation in the EU and within your country by reading the full report and Country profiles in annex. We also published a comprehensive report on the key findings for each Member State under the 2024 European Semester in EASPD's previous newsletter.