Labour markets are inclusive, when everyone of working age, in particular vulnerable and disadvantaged people, can participate in quality, paid work.

Promoting inclusive labour markets enables people to join (or re-join) the workforce and concretly means:

• Supporting job creation, promoting the social economy and inclusive entrepreneurship as well as removing obstacles to work helps people integrate in the labour market;
• Preventing in-work poverty, quality jobs are essential and policies focusing on adequate pay and benefits, rights at work, sufficient working conditions, including health and safety are key;
• Promoting skills and qualifications and ensuring access to adult learning improves stay in work and helps people advance in their careers.

Policy response

The European Pillar of Social Rights and in particular its Principles 4,13 and 14 provide for active support to employment, unemployment benefits and a minimum income for every EU citizen.

In 2008, the EU’s active inclusion recommendation asked governments to develop a comprehensive strategy based on 3 social policy areas of adequate income support, inclusive labour markets and access to quality services.

Particularly on inclusive labour markets, practical measures such as adult learning, in-work support, etc. were recommended.

In 2013, the EU's Social Investment Package urged governments to speed up the implementation of the Active Inclusion recommendation.

An accompanying paper highlighted 2 key problems of in-work poverty and disincentives to work – linked to tax and benefits systems.

In 2016 the Council adopted a Recommendation on the integration of the long-term unemployed in the labour market putting forward three key steps: while encouraging the registration of long-term unemployed with an employment service, each registered person should be provided with an individual in-depth assessment to identify their needs and potential and offered a job integration agreement at the very latest at 18 months of unemployment.

To support the actions in the area Member States can also rely on funding at EU level, in particular from the European Social Fund Plus and the Recovery and Resilience Facility.

Work on further measures in the area is undertaken by the Social Protection Committee. The Commission also cooperates with Member States through the European Semester.

Background documents

• Portraits of labour market exclusion – a joint World Bank and Commission project profiling unemployed and economically inactive people in 6 EU countries (Estonia, Lithuania, Romania, Hungary, Bulgaria and Greece)
• Portraits of Labour Market Exclusion 2.0 – Faces of Joblessness – a joint study between the European Commission, the World Bank, and the Organisation for Economic Co-operation and Development (OECD) – aims to improve understanding of labour market barriers and help inform employment support and social inclusion policymaking.