Household incomes in the EU have increased by 18% over a decade, and the employment rate has reached a record level.

An analysis by the European Investment Bank links supported investments in health, education, and social protection to increased life expectancy, reduced inequalities, and greater labor participation. Progress is not uniform, and access to affordable housing is becoming one of the main vulnerabilities of the European social model.

Household disposable incomes in the European Union have increased overall by 18% between 2015 and 2024, with growth exceeding 40% in Central and Eastern Europe, according to an analysis by the European Investment Bank. At the same time, income inequality has dropped to a historic low, and the employment rate of the working-age population is expected to reach 76% by 2025, the highest level recorded so far.

In short

Household disposable incomes in the EU have increased by 18% over a decade and by over 40% in Central and Eastern Europe. The figures describe aggregate evolution and do not mean that every household has experienced the same growth. Income inequality, measured by the Gini index, has decreased between 2015 and 2024. The EIB shows that wealth and income are distributed more evenly in Europe than in the United States, although differences between states and social groups remain significant. Life expectancy in some northern and southern European countries is up to five years higher than in the United States. Infant mortality in Europe is estimated at 3.7 deaths per 1,000 live births, compared to 6.5 in the United States. The employment rate is expected to reach 76% of the working-age population by 2025. Participation of women and older workers has increased, but digitalization and artificial intelligence are increasing the need for continuous training. The cost of housing risks limiting people's access to education, jobs, and services in economically active cities. The EIB presents affordable housing as one of the next investment priorities.

The analysis presents social investment as a use of public and private resources that can produce long-term economic benefits. This category includes health, education, vocational training, childcare, social protection, affordable housing, and community infrastructure.

The effects do not occur at the same moment as the investment is made. A raise can allow a parent to return to work, a better school can influence students' incomes many years later, and preventive healthcare can subsequently reduce treatment costs and periods of work incapacity.

The EIB argues that these expenditures should also be analyzed through their contribution to productivity and competitiveness. A healthier, better-educated population capable of adapting to technological changes can work longer, transition more easily between occupations, and adopt new technologies.

Health data show one of the most visible differences between Europe and other advanced economies. A child born in the EU can have a life expectancy exceeding 80 years, and some of the best-performing European countries reach up to five years above the level recorded in the United States.

The five-year comparison concerns the best-performing European countries, especially from the north and south of the continent, and not the difference between the average of the entire Union and the American one. Life expectancy varies considerably between EU countries and between regions or socioeconomic categories within the same state.

Progress has been supported by broad access to healthcare services, reduced infant mortality, better environmental conditions, and long-term developed public health policies. The COVID-19 pandemic temporarily interrupted the growth trend between 2020 and 2022.

Infant mortality is estimated at 3.7 deaths before reaching one year of age for every 1,000 live births in Europe. This level is presented as among the lowest globally and below the rate of 6.5 deaths per 1,000 live births reported for the United States.

These values are averages and do not identically describe each state or community. Mortality can vary depending on access to prenatal care, family income, maternal health, the quality of medical services, and the conditions in which the child is born and raised.

Education represents the second important component of social investment. Broad access to early education, primary school, and secondary school contributes to the high qualification levels recorded in many European states.

In 2024, 84% of young Europeans aged between 20 and 24 had completed at least upper secondary education. This level corresponds, depending on the national system, to high school graduation, a form of vocational education, or an equivalent qualification.

Completing studies does not automatically guarantee a well-paid job nor the same quality of education in all countries. The indicator shows, however, that a large proportion of young people reach a level that allows them to continue their studies, enter advanced vocational training, or access a wider range of occupations.

Early education can influence a child's development before starting school and can allow parents to work. The EIB chart shows high participation of children aged three to five in many European states, although coverage and costs of services vary between countries.

Access to studies without accumulating very high debts is presented as an advantage for many young Europeans. It can allow them to start their careers without the financial burden encountered in systems where the cost of higher education is largely borne through individual loans.

The analysis does not claim that European systems eliminate all barriers. Social origin, family income, region, disability, and migrant status continue to influence access to education and the results obtained.

The evolution of incomes represents another indicator used to assess the social model. Between 2015 and 2024, the disposable income of households in the EU increased overall by 18%, and in Central and Eastern Europe, the growth exceeded 40%.

Disposable income is the amount that remains for the household for consumption and saving after taxes and social transfers. Its increase can come from higher wages, higher employment, social benefits, or other sources of income.

The percentage of 18% describes the evolution calculated for the entire EU and does not mean that the income of each person has increased in the same proportion. Results vary depending on country, occupation, age, education, and the household's position in the income distribution.

Growth of over 40% in Central and Eastern Europe indicates a faster recovery compared to the initially lower levels. The faster pace has reduced some of the differences compared to Western and Northern Europe, without completely eliminating them.

During the same period, income inequality has decreased in the EU. The analysis uses the Gini index, where a lower value indicates a more balanced distribution, and a higher value shows that a larger share of income is concentrated among a smaller number of people.

Change is presented in percentage points between 2015 and 2024, and negative values indicate a reduction in inequality. The comparison with the United States must be interpreted with caution, as American data stops in 2023, and the sources use statistical definitions that are not completely identical.

The EIB shows that a more balanced distribution of income and wealth, together with social protection, contributes to reducing the number of people exposed to poverty or lack of access to services and opportunities. The analysis does not support that poverty has been eliminated or that all states have recorded the same progress.

The labor market has also experienced favorable evolution. By 2025, the employment rate of the working-age population is expected to reach 76%, a historic high for the EU.

The employment rate shows the proportion of people in a certain age group who have a job. It does not represent the proportion of the entire population, as children, some students, retirees, and other people outside the analyzed range are not included in the calculation.

Women's participation in the labor market has increased, and the gap compared to men has narrowed. In some member states, women's participation exceeds 60%, but results continue to be influenced by access to childcare, the distribution of unpaid work, employment conditions, and wage differences.

More older workers remain active for a longer period. In an aging society, this evolution can support the labor supply, public revenues, and the transfer of experience to younger generations.

Keeping people in work requires a good state of health, adequate conditions, access to training, and the ability to adapt their activity. Extending careers cannot be treated separately from investments in prevention, occupational health, and qualification.

The structure of the economy is changing at the same time. Activity has gradually shifted from traditional industries to digital services, pharmaceuticals, advanced manufacturing, and other sectors that use knowledge and specialized skills more intensively.

The spread of artificial intelligence accelerates the transformation of occupations. Some tasks can be automated, and other jobs will require the use of new tools. Skills acquired at the beginning of a career may become insufficient before retirement.

Continuous training thus becomes a component of social investment. Employees need to be able to acquire new skills without having to leave the labor market permanently or bear all the costs of professional transition themselves.

Progress in health, education, income, and employment does not eliminate new pressures. The EIB identifies housing as an area where access to opportunities is increasingly being tested.

Rents and property prices have risen sharply in many European cities. The cost can determine where young people can study, employees can accept a job, and families can build their lives.

The lack of affordable housing is particularly problematic in urban areas with high productivity and demand.

A company may have job openings but may encounter difficulties in recruitment when employees cannot afford to live nearby.

Investments in public transport, hospitals, schools, and community facilities can expand the area from which people can reach jobs and services. They can also help regions attract and retain workers, researchers, and businesses.

Climate change adds pressure to existing infrastructure. Hospitals, schools, housing, and transport systems must be adapted to extreme temperatures, floods, and other risks that can affect the functioning of services.

The EIB finances projects in education, health, affordable housing, innovation, and social infrastructure. The Bank intervenes especially in investments with long-term benefits, high initial costs, or risks that may discourage commercial financiers.

The conclusions presented come from the economic analysis of the Bank and express its assessment of the link between social investments and economic performance. The indicators show associations and comparative developments and do not demonstrate that each result is produced exclusively by a single policy.

The material is based on the chapter dedicated to social investments in the European Investment Bank's Investment Report for 2025–2026. The data comes from calculations by EIB economists based on sources such as Eurostat, the Organisation for Economic Co-operation and Development, the International Labour Organization, the United Nations, and the World Bank.

The European social model is not a unique system. The organization of healthcare, education, pensions, benefits, and housing varies between member states, and the core competencies belong to national, regional, and local authorities.

The EU complements national policies through common rules, coordination, funds, loans, and investment programs. The EIB finances projects but does not set the level of social benefits or how each state organizes its services.

The next priorities indicated by the analysis are the expansion of affordable housing, modernization of local infrastructure, maintaining access to services, and adapting skills to technological and demographic changes.

https://2eu.brussels/ro/news/veniturile-gospodariilor-din-ue-au-crescut-cu-18-intr-un-deceniu-iar-rata-ocuparii-a-ajuns-la-un-nivel-record