Commission calls for action on cost of living and AI in labour markets

The European Commission's review of the Pillar of Social Rights calls for urgent action on cost of living, a high-level group on AI's labour impact, and measures to reduce inequalities.

The European Commission has published a communication assessing the European Pillar of Social Rights and identifying three priority areas where additional action is needed to better protect and empower citizens across the EU. The document reaffirms the Pillar’s continued relevance while calling for targeted steps to address cost-of-living pressures, prepare labour markets for artificial intelligence, and tackle persistent inequalities.

What the Commission announced

The communication presents the Commission’s review of the European Pillar of Social Rights, a framework adopted in 2017 that sets out 20 rights and principles to guide EU social policy. The Commission says the Pillar has played a role in shaping recent EU measures, including the European Child Guarantee and the EU Minimum Wage Directive.

On the basis of its assessment, the Commission highlights three areas requiring “urgent additional attention.” First, it stresses the need to address affordability and the cost of living. The communication calls for continued support for measures that reduce poverty, improve access to essential services, and help people with significant barriers to return to work.

Second, the Commission proposes to “harness AI for the future of work and shared prosperity” by establishing a new high-level group to examine the impact of artificial intelligence on the labour market. This initiative is presented as a way to prepare for technological change and shape outcomes for workers.

Third, the document identifies the need to reduce inequalities and promote equal opportunities. The Commission says this will require improved support for small businesses and development of better ways to measure job quality across the EU.

Why it matters

The communication links the Pillar’s principles to concrete EU policy instruments. By pointing to the Child Guarantee and Minimum Wage Directive, the Commission underscores the Pillar’s function as a policy compass rather than a set of legally binding rules in itself. The three priority areas reflect current social and economic pressures across the bloc: household budget strains, rapid technological change, and uneven labour market conditions.

If pursued, the measures outlined could affect national and EU-level policy choices. Efforts on affordability and essential services would be relevant for social protection systems and anti-poverty programmes. Work to anticipate AI’s labour-market effects could shape consultations between social partners, regulators and industry. New metrics on job quality would influence how member states and the Commission monitor employment outcomes and design targeted supports, including for small enterprises.

What happens next

The communication frames the priorities as complementary to ongoing Commission initiatives on jobs, skills, mobility and poverty reduction. It foresees the creation of a high-level group on AI and the labour market but does not give further procedural details in the text released by the Commission. Likewise, the communication signals intentions to bolster support for small businesses and to improve job-quality measurement without specifying timelines or legislative proposals.

The European Pillar of Social Rights remains the Commission’s reference point for promoting fair working conditions and social protection, and this communication sets out where the executive sees the most immediate need for renewed focus.

Source: European Commission press release

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