Millions of workers across Europe earn significantly less than the average pay in their respective countries. Recent data from Eurostat reveals that nearly 15% of the European Union’s workforce consists of low-wage earners. These individuals earn two-thirds or less of the median wage in their countries.
The report highlights a distinct gender gap: 18.2% of women fall into the low-wage category, compared to 12.5% of men. Younger individuals are particularly impacted, with one in four low-wage earners being under the age of 30. The highest percentages of low-paid workers are found in Bulgaria (26.8%), Romania (23.9%), Latvia (23.3%), and Greece (21.7%). Conversely, countries such as Portugal, Sweden, Finland, Italy, and Slovenia exhibit the lowest rates, indicating a more equitable salary distribution.
Industries and Demographics Affected
The hospitality and food sectors are the most affected, employing over a third (35.1%) of all low-wage earners in the EU. This is closely followed by the administrative and support services sector, which accounts for 32% of low-wage employment.
Contract type and education level significantly influence earnings. Individuals on fixed-term contracts are more than twice as likely to be low-wage earners compared to those with permanent contracts, with rates of 27.2% versus 12.6%. Education also plays a crucial role, as nearly 28% of workers with lower educational attainment fall into the low-pay bracket, compared to just 4.8% of those with higher education and 17.5% of those with medium education.
