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Family-friendly policies hold the key to unlocking Europe's hidden talent pool

Published 2 days ago5 minute read

In today's EU, the balance between competitiveness and care is not just a possibility; it is a necessity. By integrating family-friendly policies with economic strategies, we can unlock Europe's hidden talent pool and strengthen our social fabric.

As we mark International Day of Families, let’s shift the conversation: from care as a personal issue to care as a public and economic priority.

One in three women in the EU are unable to work full-time due to family care responsibilities1. For men, that figure drops to one in ten. Meanwhile, half of those excluded from the labour market say they would return if quality care services were available2.

These statistics represent an economic fault line, depriving our shrinking workforce of talent, draining productivity and holding back competitiveness.

They are a wake-up call for policymakers to fully implement the European Care Strategy and invest in services that are accessible, affordable and fit for modern families.

“Supporting care responsibilities and ensuring they are more equally shared is essential for the wellbeing of families - and to make our economies fit for the future” says EIGE Director Carlien Scheele. “Care and competitiveness are deeply connected. Now is the time for more flexible policies and stigma-free parental leave, especially for men and those in senior roles.

In fact, EIGE's evidence proves that when childcare is shared equally between partners, both women and men report high satisfaction. Ergo, this is a win-win for both families and employers

Across the EU, millions of workers are forced to make difficult choices between earning a living and meeting their family’s care needs. Limited access to affordable, high-quality care services makes this balancing act even harder.

This problem mostly impacts women.

Our found that 67% of women do housework every day, compared to 46% of men. And when it comes to hours spent on caring responsibilities, 43% of women care for children aged 0-12 years for , compared to 20% of men.

Workplace culture can reinforce this. Long hours, inflexible schedules and stigma as well as inadequate institutional support around taking parental leave—particularly for fathers—create environments where caregiving is seen as a private issue, not a structural concern.

Families today are more diverse, where dual-income households are the norm, and single parents are navigating care with limited support, which leads to risk of poverty.

EIGE data reveals that in 2022, 48% of lone mother households and 38% of lone father households in the EU were at risk of poverty.

If flexible working arrangements, care infrastructure and parental leave policies don’t reflect these realities, we continue to lock talents and large portions of our population out of full participation in the economy.

The EU is grappling with demographic shifts, skill shortages and an urgent need to boost productivity. Ignoring the care burden actively undermines all three of these challenges.

Every time a skilled worker exits the labour market or scales back due to caregiving responsibilities; the economy loses valuable experience, knowledge and potential.

This comes at a price.

Reduced hours, lower earnings and weaker pension contributions impact individuals and families. They also drain public budgets and social protection systems and hold back long-term economic growth. Which, in our ageing societies is a structural inefficiency – not just a gender equality issue.

Putting care at the top of the policy agenda can help to address this. It will also improve the gender balance of our workforce.

EIGE’s research on the economic benefits of gender equality show that this is not a zero sum game: both women and men will gain from this windfall.

We found that improving gender equality in the workplace would boost EU GDP by more than €1.95 trillion by 2050 and lead to an additional 10.5 million jobs for all.

When care is properly supported and shared, everyone benefits: workers, employers, families and the wider economy.

Evidence shows that countries with better care infrastructure and more equitable sharing of responsibilities within families and societies have higher rates of employment, greater gender equality stronger economic outcomes and more resilient through crises.

Investing in care services is one of the most powerful tools we have to close the gender employment gap. It enables more women to work full-time and opens the door for men to step into caregiving roles without stigma or penalty.

It also allows employers to draw from a broader, more diverse talent pool, helping to meet skill shortages and build a more stable workforce.

That’s why the EU’s work-life balance directive prioritises a more equal sharing of care responsibilities. And EIGE’s Gender Equality Index found that around half of part-time workers in the EU would be willing to move to full-time jobs if flexible working was available.

For policymakers, the political context is clear, and your constituents are ready for you to act.

Now is the time to fully implement the European Care Strategy and prioritise to long-term investment in care infrastructure.

For employers, there is an opportunity to embrace flexible working and workplace regulations where taking up parental leave is not a stigma – but a perfectly normal, easy to arrange matter where there is no burden placed on anyone.

By taking a lead, you will attract and retain top talent, boost morale and build stronger, more productive teams.


Return to the labour market after parental leave: a gender analysis

A Better Work–Life Balance: Bridging the Gender Care Gap

 1According to Eurostat data, 2022

 2According to the European Commission’s Flash Eurobarometer on work-life balance, 2018

Origin:
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European Institute for Gender Equality
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