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Building on Eurofound’s established conceptual framework of the digital age, this concept paper examines how the unfolding artificial intelligence wave is set to transform not only the world of work and employment, but also the wider fabric of society, from the delivery and quality of public services to the production, dissemination and governance of information. The analysis is guided by four vectors of change – automation, augmentation, digitisation and platformisation – identified as the central drivers shaping this transformation.

Technology is more likely to create new tasks than remove existing ones, according to new findings from the unique pan-European Working Conditions Survey. Rather than widespread destruction, the primary challenges facing the EU workforce as digitalisation transforms the European labour market, are shifting towards skills mismatches, generational divides, and worker autonomy.

Minimum wage growth remains real and substantial for 2026. Many EU Member States with a statutory or national minimum wage have continued to apply more structural uprates, with the aim of reaching a higher percentage value of actual (average or median) wages. The most likely driver of this is the Minimum Wage Directive and its stipulation that countries must adhere to ‘indicative reference values that guide their assessment of adequacy’. At the same time, in a few Member States, progress on reaching targets previously set has been slower.

This report describes how the provisions of the 2023 Council recommendation on adequate minimum income ensuring active inclusion are implemented across Member States and presents the progress that has been achieved since 2022. In particular, it shows the main relevant reforms that have been conducted since the adoption of the Recommendation.