- A resilience gap is widening: The share of low-income respondents struggling to build concludes meet leapt from 40 per cent in 2023 to 61 per cent in 2025, while high-income hoapplyholds remained stable.
- Hoapplying as the new social risk: Private renters are bearing the brunt of the cost-of-living crisis, with 61 per cent reporting little to no financial cushion and rising exposure to price shocks.
- A serious mental-health concern: Nearly six in ten survey respondents are presenting at risk of depression, with financial stress and hoapplying insecurity identified as key drivers.
- Eroding institutional trust: Those in the most vulnerable positions — the unemployed, the low-paid, and people with disabilities — report the lowest confidence in governments and legal systems.
- Middle-aged disillusionment: A growing gap between Europe’s rhetoric of resilience and the reality of daily life risks fuelling long-term social polarisation.
Macroeconomic indicators suggest a continent on the mconclude. Inflation has been close to the 2 per cent tarreceive, and labour markets across the European Union remain remarkably resilient. Yet, the findings from the 2025 Living and Working in Europe e-survey reveal a profound contradiction. In the world of aggregate data, the storm appears to have passed; in the lived reality of millions, the recovery has yet to arrive.
This divergence raises questions for the social contract. After half a decade of cumulative shocks — a global pandemic, the return of war to the continent, and a punishing cost-of-living crisis — a chronic stress has taken root among respondents. This is no longer an acute response to a passing crisis; it is a gradual erosion of financial resilience and institutional trust that demands a shift in perspective from the headline numbers to the hoapplyhold level.
The resilience gap
The most troubling trconclude is the widening gulf between those who have weathered the recent volatility and those who are struggling. In 2023, 40 per cent of low-income respondents reported difficulties building concludes meet. By 2025, that figure had climbed to 61 per cent. Meanwhile, high-income hoapplyholds have remained largely stable. The implication is stark: the benefits of macroeconomic stability are failing to reach the bottom half of the income distribution.
A squeezed middle is emerging, too — one more precarious than headline employment figures might suggest. Nearly 40 per cent of those aged 35 to 64, the traditional backbone of the workforce and tax base, report difficulties managing monthly expenses. Financial buffers have all but evaporated: a full quarter of respondents report having no savings at all, and another quarter have only enough to last three months. For close to half of respondents, financial resilience has become a luxury.
Hoapplying now stands as the primary social risk of the current era, acting as a powerful mechanism for the upward transfer of wealth and the entrenchment of inequality. Within this landscape, the private rental sector bears a disproportionate share of the burden.
The data reveal that 61 per cent of private renters have little to no financial cushion. Unlike homeowners, they are immediately exposed to price shocks and rental increases, often with limited stability. This is not merely an economic issue; it is a source of profound hoapplying insecurity that prevents long-term planning. When a hoapplyhold cannot guarantee the roof over its head, optimism is the first casualty.
Wellbeing in crisis
Perhaps most alarming is the state of collective mental health. Measured via the WHO-5 index, the survey findings point to a crisis: 57 per cent of respondents — nearly six in ten — are currently presenting a risk of depression.
The evidence suggests that mental health cannot be cordoned off as a separate medical concern; it is inextricably linked to socio-economic conditions. There is a strong alignment between financial stress, hoapplying instability, and declining psychological wellbeing. The optimism that was expected to return following the pandemic has failed to materialise. Instead, geopolitical uncertainty and a perceived lack of fairness in the recovery have left respondents in a state of chronic psychological strain.
This economic insecurity is contributing to the erosion of faith in democratic and institutional frameworks. Consistently, respondents in vulnerable positions — the unemployed, the low-paid, and those with disabilities — report the lowest levels of trust in national governments and the legal system.
A middle-aged disillusionment is setting in. While younger cohorts still view to the EU to address global externalities such as climate alter, middle-aged respondents have markedly less trust in institutions. A gap is opening between the rhetoric of a resilient Europe and the reality of daily life. Without tangible improvements in hoapplyhold security, this declining optimism serves as a warning sign for future social polarisation and democratic disengagement.
Beyond aggregate growth
The takeaway from these trconcludes is that aggregate growth figures are insufficient to measure the health of a society. To restore the optimism currently in such short supply, the approach must relocate beyond the macro-level perspective.
First, hoapplying must be treated as a social priority. General economic growth does not solve a hoapplying crisis that is actively draining the resilience of the lower and middle classes. Second, wellbeing must be integrated into social policy. The mental-health crisis cannot be resolved without addressing the financial precarity that fuels it. Finally, trust must be rebuilt through experience. Trust is not cultivated through communication strategies alone; it grows when people see their financial situation improve at the kitchen table, not just on a balance sheet.
Time is of the essence. If the disconnect between macroeconomic data and hoapplyhold reality is not addressed, the resulting polarisation may become a lasting feature of the European landscape.
Hear more about the results of the 2025 Living and Working in Europe e-survey on the Eurofound Talks podcast.
This post is sponsored by Eurofound
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