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13 Nov, 2024

EU Commission report: early-life social investments yield highest returns

Social investments and reforms in key areas can boost employment, social inclusion, competitiveness and economic growth. This is the main finding of the Commission’s 2024 Employment and Social Developments in Europe (ESDE) report. 

Reforms and financial support for early childhood education and care, skills development, lifelong learning, vocational training and certain job support schemes are particularly promising. The latest ESDE report shows that investments have had a positive effect on income, employment levels, social inclusion and the fight against poverty, helping to reduce social and economic gaps across the EU. 

The ESDE report shows that social investments and reforms yield higher returns when focused on early stages of citizens’ lives. 

Investing in early childhood education and care helps parents, especially mothers, find and keep jobs, which reduces gender gaps in both employment and pay levels. It also reduces the risk of poverty and social exclusion. For children, social investments lead to better education and job prospects later on in their lives, which in turn boost economic growth. To meet the 2030 targets for early childhood education and care, the report finds that the EU should invest an additional €11 billion per year. In the next Commission, the Child Guarantee will be strengthened to prevent and fight social exclusion through education, healthcare and other essential public services. The Commission will also put forward a first-ever EU Anti-Poverty Strategy. 

Despite overall economic and social progress, however, the report also finds that significant disparities persist both within and between countries. 

Read more here. 

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