Low-wage workers in Europe: where pay is the least profitable

Millions of European workers earn significantly less than their country’s average pay, with young women, low-educated individuals, and those on fixed-term contracts being particularly vulnerable to low wages, according to the latest Eurostat data.

Nearly 15% of the EU workforce is considered low-wage, defined as earning two-thirds or less of the median wage in their country.

The report reveals a striking gender disparity, with 18.2% of women falling into this category, compared to 12.5% of men. Young people are disproportionately affected, with one in four low-wage earners under the age of 30. The highest concentrations of low-paid workers are found in Bulgaria (26.8%), Romania (23.9%), Latvia (23.3%), and Greece (21.7%). On the other hand, countries like Portugal, Sweden, Finland, Italy, and Slovenia report much lower rates, suggesting a more equal salary distribution.

The hospitality and food service sector employs the largest share of low-wage workers in the EU, with over a third (35.1%) of all low-wage earners in this industry. Administrative and support services follow closely behind, accounting for 32% of low-wage workers.

The type of employment contract and education level also play key roles in determining who falls into the low-wage bracket. Workers on fixed-term contracts are more than twice as likely to earn low wages compared to those with permanent contracts (27.2% vs. 12.6%). Education level significantly impacts earnings as well: nearly 28% of low-educated workers fall into the low-wage category, compared to just 4.8% of those with higher education and 17.5% with medium-level education.

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