Renewed European Pillar of Social Rights Action Plan to tackle Cost of Living, AI Impact at Work, and Inequalities

Renewed European Pillar of Social Rights Action Plan to tackle Cost of Living, AI Impact at Work, and Inequalities

On 22 July 2026, the European Commission published a new communication on the European Pillar of Social Rights’ implementation.

Its three areas of focus are highly relevant to EPR’s work:

Cost of living and affordability

While employment in the EU is at record high, in 2025, almost 50 million people of working age were outside the labour force. Women and certain groups, such as persons with disabilities, are disproportionately affected (2025 disability employment gap: 24.2 pp).

In response, the Commission will launch the first-phase consultation of EU social partners on the possible direction of EU action on activation of persons facing significant barriers to employment. The Commission will also put forward the Quality Jobs Act by Q4 2026, an action that is part of the Quality Jobs Roadmap (EPR article on the Quality Jobs Roadmap available here).

EPR calls for the European Commission to promote quality employment for persons with disabilities in both initiatives, and the key role of services for persons with disabilities in supporting this objective.

The Commission acknowledges the challenge of finding affordable housing across Europe. As part of the European Affordable Housing Plan, the European Commission published the Affordable Housing Act on 9 September (more information available here).

In 2027 the European Commission will present a European Care Deal, a framework to address long-term care workforce challenges, reduce the pressure on informal carers, and stimulate investments into technologies to support carers and people receiving care.

Artificial Intelligence (AI) at work and in society

The Communication addresses the impact of AI in the labour market and society, in particular on labour demand and the organization of work. It underlines that, while AI can help strengthen public services, and can be a tool to learn, re-skill and solve problems, it can also raise important concerns regarding equal opportunities and inclusion. 

To address this, the European Commission will set up a High-level Experts group to examine the potential impact of AI, including scenarios for the potential long-term trajectory for EU employment, and how the impact of AI on jobs can be anticipated and managed most effectively. In parallel to possible Quality Jobs Act initiatives on Algorithmic Management, the European Commission will consider support activities for the responsible adoption of such tools, such as sharing of good practices, mutual learning and capacity building.

EPR welcomes the Commission’s plans to examine AI’s impact on employment and support the responsible use of tools such as algorithmic management. Promoting AI literacy, accessibility and inclusion must remain central to these efforts.

Inequalities, fairness and equal opportunities

The Communication highlights the persistence of income inequalities, regional and territorial disparities, as well as environmental inequalities.  To tackle them, the Commission will take stock of indicators to monitor socio-economic inequalities and social mobility; provide guidance on inclusive hiring practices; develop an Education Package to improve school education performance, a VET Strategy to strengthen VET attractiveness, inclusion and innovation; work on the Right to Stay Strategy to address territorial disparities; and publish the upcoming EU Youth Strategy in 2027.

EPR will continue to engage with EU policymakers to ensure that persons with disabilities are considered across these initiatives, while highlighting the essential role of services for persons with disabilities in supporting their inclusion, participation, equal opportunities, and full participation in society.

Communication “European Pillar of Social Rights: a renewed commitment to protect and empower EU’s citizens” available here.