Project

Investment Report 2024/25 - Chapter 4: Social inclusion as a path to well-being and competitiveness

European Investment Bank

DOI: 10.26303/802b-qs69

What is it about?

Chapter 4 examines the role of social inclusion and equality of opportunity in shaping Europe’s economic performance, well-being, and competitiveness. It highlights how inclusive economic policies can unlock human potential, increase labour force participation and drive productivity growth. While Europe has made significant progress in social inclusion, persistent barriers –such as gender disparities, educational inequalities, and rising housing costs – continue to limit opportunities. The chapter explores how labour force participation has evolved, particularly for women and older workers, and looks at how skill shortages are constraining corporate investment. It also discusses the importance of social investment in education, health care and housing to enhance social cohesion and economic resilience.

Why is it important?

Social inclusion is not only a moral imperative but also an economic necessity for Europe’s long-term prosperity. Ensuring that people have equal access to opportunities improves the use of human brainpower and talent, strengthens labour markets and enhances productivity – key factors in maintaining Europe’s global competitiveness. Persistent inequalities, skill shortages and a dearth of affordable housing limit social mobility, potentially widening disparities between regions and social groups. The chapter underscores the economic benefits of reducing barriers to workforce participation, particularly for underrepresented groups such as women and individuals from disadvantaged backgrounds. Addressing these challenges through policies targeting education, childcare and housing can significantly boost economic output and improve overall well-being.

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Who is involved?