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having regard to Article 3 of the Treaty on European Union,

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having regard to Articles 9 and 149 of the Treaty on the Functioning of the European Union,

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having regard to the Commission communication of 22 November 2022 on the Annual Sustainable Growth Survey 2023 (COM(2022)0780),

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having regard to the Commission proposal of 22 November 2022 for a Joint Employment Report from the Commission and the Council (COM(2022)0783),

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having regard to the Commission recommendation of 22 November 2022 for a Council recommendation on the economic policy of the euro area (COM(2022)0782),

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having regard to the Commission report of 22 November 2022 entitled ‘Alert Mechanism Report 2023’ (COM(2022)0781),

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having regard to the Commission communication of 22 November 2022 on the 2023 Draft Budgetary Plans: Overall Assessment (COM(2022)0900),

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having regard to the European Pillar of Social Rights (EPSR), proclaimed by the Council, Parliament and the Commission in November 2017,

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having regard to the Commission communication of 9 November 2022 on orientations for a reform of the EU economic governance framework (COM(2022)0583),

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having regard to European Labour Authority Report of November 2021 on Labour Shortages and Surpluses,

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having regard to Rule 54 of its Rules of Procedure,

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having regard to the report of the Committee on Employment and Social Affairs (A9-0051/2023),

A.

whereas the joint employment report for 2023 strengthens the focus on the implementation of the UN Sustainable Development Goals (SDGs), the European Green Deal objectives, and the EPSR, in line with the commitments of the EPSR Action Plan of March 2021 and with the Porto Declaration by EU Leaders of 8 May 2021; whereas its implementation should strengthen the Union’s drive towards a green, digital and just transition and contribute to achieving upward social and economic convergence; whereas many Commission assessments of the European Semester suggest compliance with its recommendations has been low, in part because of its limited enforceability, including in the case of social policy matters;

B.

whereas a Eurofound survey (1) shows that cost of living challenges continue to be reported in all EU Member States, with 48 % respondent struggling to make ends meet; whereas Russia’s war of aggression against Ukraine has caused humanitarian, energy and economic crises in the EU and exacerbated existing inequalities; whereas actions under the EPSR would help create quality employment opportunities and fair social protection systems, which are key to enhancing future resilience;

C.

whereas while the EU unemployment rate remained stable at 6 % in August 2022, EU companies are struggling to find employees with required skills; whereas the availability of skilled staff and experienced managers is the most important problem for a quarter of the EU’s small and medium-sized enterprises (SMEs), which in turn account for 99 % of all EU businesses (2);

D.

whereas a Eurobarometer survey has shown that social inequalities are the most serious concern of people in the EU and these inequalities have been aggravated by the social and economic consequences of the COVID-19 pandemic as well as other structural problems; whereas large income inequalities can have damaging effects on economic growth and undermine social cohesion; whereas the spiralling cost of living and skyrocketing inflation, fuelled by huge increases in the price of energy, fuel, food and essential goods throughout Europe are creating an economic and social crisis; whereas even before the pandemic, 78 % of people in the EU wanted their national governments to do more to reduce income inequalities (3); whereas the upcoming review of the economic governance framework represents a unique opportunity to support social investment;

E.

whereas poverty, including in-work poverty, remains a challenge for many Member States; whereas workers on temporary contracts face a much higher risk of in-work poverty than those on permanent contracts; whereas in-work poverty rose from 8,5 % in 2010 to 9 % in 2019 in the EU but remained stable between 2020 and 2021 due to the swift policy intervention during the pandemic; whereas in-work poverty has to be closely monitored, especially in the light of the recent negative impact of inflation on real wages; whereas real wage levels are still below the crisis-year 2009 level in many Member States; whereas low-income workers and vulnerable groups are being hit the hardest, but middle-class living standards are deteriorating rapidly too;

F.

whereas for people in employment the risk of poverty or social exclusion in the EU was 11,1 % in 2021; whereas more than 8 % of people continue to devote over 40 % of their disposable income to housing, and little progress has been made in reducing the number of homeless people across EU Member States; whereas social protection systems are under severe pressure to mitigate the social impact of the crisis and ensure decent living conditions for all as well as access to essential services such as health, education and housing; whereas social services in some Member States remain unevenly and unequally developed across the EU, facing underfinancing and a lack of quality standards;

G.

whereas climate change and environmental destruction have exacerbated inequalities as they disproportionately affect the poor and the most vulnerable groups; whereas a green deal focused on investments to make the transition to a decarbonised, climate-neutral economy, has to go hand in hand with investing in the people who cannot afford the change; whereas it is necessary to ensure a sustainable future for all;

H.

whereas, according to the latest Intergovernmental Panel on Climate Change (IPCC) report, climate change, global warming and loss of biodiversity are accelerating exponentially, as illustrated by recent dramatic and extreme weather events across the globe; whereas people in Europe are feeling the effects of climate breakdown and extreme weather events driven by climate change ever more intensely; whereas the 2030 decarbonisation targets have been raised to reach carbon-neutrality by 2050; whereas stepping up mitigation and adaptation efforts is leading to a profound transformation of European and national economies and labour markets;

I.

whereas high inflation across the EU, with rapid increases in energy and food prices, is placing a burden on households and SMEs, hitting the most vulnerable people on the lowest incomes hardest; whereas energy-market conditions and rapid price increases are exacerbating energy poverty, to which more than 50 million of people in the EU were already exposed in 2019, before the onset of the pandemic; whereas the European Central Bank (ECB) projects that inflation will remain high in 2023 (above its 2 % target) and is set to continue raising interest rates over the coming months; whereas the cost of living crisis and distortions in the housing market, such as increased financialisation, have negative implications for the affordability of housing, with the risk of further increasing homelessness;

J.

whereas the EU requires an industrial strategy that makes its industrial base more resilient, socially effective and environmentally sustainable; whereas a socially just transition and the future of industry requires massive public investment; whereas such a strategy is crucial to ensure respect for climate objectives, notably the Paris agreement; whereas the EU industrial strategy must go hand in hand with a labour strategy; whereas any fair and sustainable production model should place workers and trade unions, as well as workers’ interests and longstanding expertise, at the very core of its development to ensure its democratic functioning;

K.

whereas, if well regulated, the new digital economy, including artificial intelligence (AI), has the potential to benefit society as a whole by improving quality of life and working conditions and both preserving employment and creating new quality employment opportunities, while fostering prosperity and facilitating the transition to a more sustainable, robust and resilient economy;

L.

whereas according to Eurofound, 20 % of jobs in Europe were of ‘poor quality’ in 2017, putting the physical or mental health of workers at increased risk; whereas according to the OECD, financial uncertainty and job insecurity are risk factors associated with poor mental health; whereas investing in long-term quality jobs is key to combating poor mental health among workers;

M.

whereas the COVID-19 pandemic highlighted the need for increased vigilance and investment in all Member States to ensure that they are adequately prepared to deal with future health crises and are also able to preserve the quality of care for all other illnesses and conditions; whereas particular attention has to be devoted to the needs of vulnerable groups;

N.

whereas gender equality and gender mainstreaming should be at the core of the 2023 annual sustainable growth strategy;

O.

whereas skilled workers, education, training and lifelong learning are of key importance to ensure the sustainable and just transition of the European economy; whereas upskilling, reskilling and training programmes must be available for all workers, including those with disabilities, and should also be adapted to the needs and capacities of workers;

P.

whereas workers have the right to a high level of protection of their health and safety, with an accessible work place and environment that lives up to and contributes to the implementation of the European Pillar of Social Rights and Occupational Safety and Health standards;