Poverty, inclusion, and employment - The path toward a resilient Europe

Jul 19, 2026

The report examines how Europe’s labor markets and welfare systems have been affected by the COVID-19 crisis and the Ukraine war, and how households experience the cost-of-living pressures in selected countries. It synthesizes evidence on employment dynamics, unemployment, job vacancies, labor market tightness, and labor costs, then outlines policy directions aimed at building a more resilient Europe. Appendices provide methodology for measuring direct and indirect welfare impacts of food and energy inflation.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages31

Reading Time1 h 18 min

Acknowledgments

The resilience of the EU labor market to the COVID-19 crisis and the Ukraine war

Welfare impacts of the cost-of-living crisis on European households in selected countries

Policies toward a more resilient Europe

References

Annex: Methodology

Measuring Direct and Indirect Welfare Impacts of Food and Energy Inflation

Measuring Overall Impacts of Overall Inflation using Weighted Adjusted CPIs

Authorized Pub l ic Disclosure Authorized WORLD BANK GROUP Poverty, inclusion, and employment: The path toward a resilient Europe u ub lic Disclosure th ir el Disclosure Authorized Pub lic Disclosure Poverty, inclusion, and employment: The path toward a resilient Europe Poverty and Equity Global Practice Europe and Central Asia Region Monica Robayo-Abril, Nga Thi Viet Nguyen, and Lukas Delgado The World Bank © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 [Internet: www.worldbank.org](Internet: www.worldbank.org) This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; email: pubrights@worldbank.orgpubrights@worldbank.org. Translations—If you create a translation of this work, please add the following disclaimer along with the attribution: This translation was not created by The World Bank and should not be considered an official World Bank translation. The World Bank shall not be liable for any content or error in this translation. Adaptations—If you create an adaptation of this work, please add the following disclaimer along with the attribution: This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation are the sole responsibility of the author or authors of the adaptation and are not endorsed by The World Bank. Third-party content—The World Bank does not necessarily own each component of the content contained within the work. The World Bank, therefore, does not warrant that the use of any third-party-owned individual component or part contained in the work will not infringe on the rights of those third parties. The risk of claims resulting from such infringement rests solely with you. If you wish to reuse a component of the work, it is your responsibility to determine whether permission is needed for that reuse and to obtain permission from the copyright owner. Examples of components can include, but are not limited to, tables, figures, or images. Table of Contents Acknowledgments ........................................................................................................................................ 6 I. The resilience of the EU labor market to the COVID-19 crisis and the Ukraine war ........................ 8 II. Welfare impacts of the cost-of-living crisis on European households in selected countries ......... 15 III. Policies toward a more resilient Europe ......................................................................................... 25 References .................................................................................................................................................. 27 Annex: Methodology .................................................................................................................................. 28 Methodology 1: Measuring Direct and Indirect Welfare Impacts of Fo

FAQs

What major shocks does the report analyze for Europe’s labor market resilience?

It analyzes impacts from the COVID-19 crisis and the Ukraine war on the EU labor market’s resilience.

How does the report assess welfare effects of the cost-of-living crisis?

It evaluates welfare impacts on European households in selected countries, supported by related figures and measurement approaches.

What methodologies are included in the annex?

The annex details methods for measuring direct and indirect welfare impacts of food and energy inflation, and for measuring overall inflation impacts using weighted adjusted CPIs.

Jul 19, 2026

Upload by Lucas Martin