Wellbeing and social cohesion falter in Europe despite economic progress

Increasing economic divergence and a profound sense of precariousness permeate the European Union, according to results from Eurofound’s eighth Living and Working in the EU e-survey. Despite inflation falling to 2.1% in October 2025 and a broadly stable labour market, the new findings detail a squeezed European public grappling with the cumulative weight of half a decade of shocks that have left lasting financial and psychological scars.

The data underscore a growing divide in financial resilience, where 61% of respondents in low-income households report difficulty making ends meet, a stark contrast to the 9% recorded among high-income cohorts.

In the latest episode of Eurofound Talks, Mary McCaughey sits down with lead researcher Eszter Sandor to dissect these findings. The episode explores how economic stress has affected the European psyche. Mental well-being remains a critical concern, with 57% of respondents now classified as being at risk of depression. What started as an acute response to a global crisis appears to have developed into a chronic condition, with optimism about the future failing to recover to pre-2022 levels.

Housing has emerged as a primary site of insecurity, with cost-of-living pressures disproportionately burdening private renters. This precariousness is further reflected in a structural shift in the European workplace. While hybrid working is now the norm, a notable friction has emerged between employee preference and corporate reality. Half of the workforce desires the flexibility of teleworking several times a week, yet those denied such arrangements report significantly higher levels of fatigue and work–family conflict.

They discuss how the survey captures an erosion of institutional trust that closely tracks with economic insecurity. While young adults retain an encouraging degree of confidence in national and EU institutions, those aged 35–64 report the lowest levels of trust, coinciding with their high levels of financial difficulty.

With policymakers gathering for the European Employment and Social Rights Forum next week, the research suggests that rebuilding democratic engagement is contingent upon reducing economic insecurity and integrating well-being metrics into the heart of social policy.

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