Fifty years supporting better policies for a strong social Europe

This idea of putting people first has always been the core of Europe’s social market economy. We want strong social partners. The market can only work well, if the social dialogue thrives too. We need to make sure that we strengthen social rights in Europe.

This quote, from President von der Leyen’s November 2024 address to the European Parliament, where she presented the new College of Commissioners and its programme, both reaffirms Europe’s values as a social market economy and puts social dialogue at the heart of future competitiveness.

Improving the lives of people in Europe, strengthening social dialogue, and embracing the principle that economic competitiveness and social progress are complementary objectives are the very essence of Eurofound as an organisation. And have been for five decades, as this year marks the 50th anniversary of the establishment of the Agency.

Based in Loughlinstown in Dublin since 1975, Eurofound works to improve social and employment policies, which ultimately improves the lives of people across Europe. Our policy contribution is focused on collecting and communicating reliable data and providing research to enable stakeholders to take informed decisions that help to build a Europe that works for people.

Eurofound’s journey has, somewhat paradoxically, been one of both consistency and change. We keep our focus on the living and working conditions of EU citizens, but the situation of those citizens has changed profoundly over the last 50 years.

The Union ended the post-war division of the continent, growing to eventually include the current 27 Member States. It helped build a strong economy and achieved exemplary living standards. It also went through economic crises, high unemployment, pandemics, technological breakthroughs and challenging external competition. In both successful and challenging times, Eurofound’s work has been an important knowledge source for governments, the social partners and EU institutions when shaping their policies.

The Agency is now entering a new era, where preserving peace and increasing the competitiveness and strategic autonomy of the EU, as well as facing the challenges of demographic ageing, digitalisation, climate change, and preserving a democratic and inclusive society are at the forefront of political priorities.

Eurofound will enter its next decade serving the interests of its stakeholders, providing them with unique, timely and reliable knowledge and focusing on the challenges from the standpoints of the social partners, citizens and governments.

Early foundations

Eurofound was established in the context of the first social action programme of the European Economic Community (EEC) in 1973, which recognised the complex nature of living and working conditions in post-war Europe and called for Community action to be based on interdisciplinary scientific analysis.

It is important to consider the economic and political realities of the time. In the 1970s, the post-war economic boom had slowed, European economies were grappling with stagflation, women were severely underrepresented – and often treated unequally – in the workplace and public life. While the current euro area had an overall inflation rate of around 2 percent at the end of 2024, 50 years ago it was multiples of this in most European countries, and as high as 15.5 percent in Italy, 14.2 percent in Denmark and 13.5 percent in Ireland.

Politically, Europe and the world were divided between two competing political and economic systems, with citizens in some European countries living under oppressive and authoritarian regimes.

Against these challenges, European lawmakers proposed that economic, employment and social challenges could be better addressed if a centre of competence were created and mandated to collect and analyse data and publish research, thereby providing the necessary knowledge to decision-makers.

Upon the proposal of the first Irish commissioner, Patrick Hillery, Eurofound was established as a tripartite agency, embodying the inclusive approach by involving governments and the social partners in its management.

Mandate for change

Eurofound’s original mandate focused on understanding the impact of European integration on labour markets, working conditions and living standards as well as monitoring the state of industrial relations and the possibilities for involving the social partners in decision-making. Its mission was clear: to provide high-quality, reliable data that would inform policies aimed at improving the quality of life of workers and citizens in Europe.

By the late 1970s, work on wage systems was already a core part of the Agency’s activities. Other early activities focused on new forms of work organisation, shiftwork, and physical and psychological strain at work. The 1980s began with recession and the cumulative social costs of the economic upheaval of the previous decade: unsurprisingly, Eurofound’s focus was on the long-term unemployed and improving employment policy.

The 1990s brought increased democracy and growth to Europe, and the scope of Eurofound’s pursuits grew as it launched the European Working Conditions Survey to gather comprehensive data on working conditions across European countries. The specialisation of the Agency in social and company policy developed further in the early 2000s with the addition of the European Quality of Life Survey and the European Company Survey.

Eurofound’s data informed policies that focused on the economic and social integration of new Member States and drove convergence across an EU that now included over 400 million people.

New realities

Many social and economic indicators have gradually improved since Eurofound first opened its doors: life expectancy in the early member countries of the EEC has increased by between six and eight years since the 1970s; and – while inequalities in pay endure – the employment rate of women has soared, passing the 70 percent mark in 2023, compared with a rate of just 27 percent in 1975.

However, the COVID-19 pandemic and the war in Ukraine have thrown Europe into flux in recent years. Eurofound’s research showed that 41.7 million employees teleworked across the EU in 2021, and the impacts of the pandemic on working life have largely remained even as the health impacts subsided. Hybrid work is now a reality for millions of people across the bloc, whereas it was a niche working arrangement just a few years ago.

Russia’s brutal invasion of Ukraine in February 2022 created a humanitarian crisis and a need for immediate response from the EU. It is estimated that over six million Ukrainian refugees are now spread across the continent, with most concentrated in central Europe. Eurofound’s research presented data and recommended policy action to support displaced Ukrainians in their plight and to help thousands make their way into the labour market and gainful employment.

These are by no means the only large-scale changes occurring in the labour market. New technologies have shown their potential to both drive efficiency and economic growth and facilitate excessive employee monitoring, curtailing autonomy. The bite of demographic change and an ageing workforce will be increasingly felt in the coming decades, while climate change is now a direct challenge to job quality and well-being.

Eurofound is helping Europe prepare for these new challenges. Recent research has not only emphasised the potential of new technologies, but also made recommendations for improving human–robot interaction. Research on the green transition highlights approaches that maximise employment gains, protect working conditions and ensure a just transition. The Agency has also identified key strategies to tackle labour shortages and deal with the immediate impacts of demographic change, including developing workers’ skills, reducing economic inactivity and attracting labour to the affected sectors.

The overall impact of Eurofound’s work is seen in thousands of scientific citations, hundreds of media mentions and dozens of key EU policy references on a yearly basis. Eurofound’s work supports impactful and positive policy development across Europe, from the EU Directive on adequate minimum wages to the reinforced Youth Guarantee.

Vision for the future

Just as European leaders in the 1970s recognised the need for cool heads and a scientific approach to social and employment policy in the tumultuous era in which they lived, current policymakers understand that science, data and expert analysis must be the basis of the responses to the challenges of the modern era.

We prioritise evidence-based research, innovative communication strategies, and bringing stakeholders together through major events such as our forthcoming flagship Foundation Forum 2025, not only to help Europe adapt to the winds of change, but also to set out a vision of economic progress and social cohesion. Eurofound’s mission is Europe’s mission: putting people first and building a strong social market economy. I encourage you to join our celebrations this year as we mark 50 years supporting better policies for a strong social Europe.