Europe doesn’t have one answer. It has 36.

We ran the same analysis at three scales: the EU-27, the full set of 36 European markets, and where the two diverge.

“There is no single European corridor → variation is the answer.”

On a population-weighted average, the EU-27 looks like it is coping. But that average masks a wide range. More than a third of EU-27 workers live in markets that are already past coping. The average tells you something about Europe. Only the country-by-country view shows the true shape of its parts, and therefore of Europe as a whole.

“The spillover pressure sits at the EU’s borders, not within them.”

If you look only at EU-27 member states, you do not see any labour markets in “active crisis.” But if you also include nearby countries applying to join the EU, three of them (North Macedonia, Serbia, and Turkey) do look like they are in crisis. So the biggest pressure is at the EU’s edges rather than inside it, in the markets the EU is still deciding whether to bring in.

“For nearly 40% of EU-27 workers, the optimism path runs through climate, not tech.”

Almost 40% of EU-27 workers live in countries whose economies have stopped growing in the conventional sense: Germany, France, Austria, Sweden, Finland, and Luxembourg. In those countries, the comforting story “old jobs disappear, new ones appear at the same rate” breaks down. Output is not expanding to make room for new jobs. A more realistic best-case is shifting people into climate-adaptation work instead.

This might sound counterintuitive. Climate change itself threatens certain jobs, but redirecting workers into climate-adaptation jobs that grow as Europe decarbonises can work. For nearly 40% of EU-27 workers, the optimism path runs through climate, not conventional tech.

1. The 36-market read, and what changes if you restrict it to the EU-27 Population-weighted aggregates: the 36-market panel is the primary read; the delta strip shows what shifts when you narrow the scope to EU-27 member states.

We focus on the full 36-market set because looking only at the EU-27 average would hide problems building up in nearby border countries as well as within the group. The “delta strip” is a side-by-side comparison showing what changes when you switch from 36 markets to the EU-27, using 20–64 population weights from a UN PPP2024 baseline.

What changes if you restrict to EU-27

Eight aggregate-level deltas (36-market EU-27)

36 European markets

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