EU Labour Market in the Context of Sustainable Development

The aim of this study is to empirically assess how labour market dysfunctions, human capital, innovation and economic development jointly influence the employment rate in the European Union within the framework of SDG 8—Decent Work and Economic Growth. While the link between employment and sustainability is well-recognized, this research addresses a significant gap by identifying how structural inefficiencies, specifically youth inactivity (NEET) and low work intensity, act as primary inhibitors that decouple economic growth from sustainable social integration. Using a multivariate panel regression, the study quantifies the impact of human capital and R&D investment as catalysts for decent work. The findings challenge the traditional growth-centric paradigm, revealing that achieving SDG 8 targets in the EU depends more on the quality of labour market integration and human capital resilience than on overall GDP expansion. This paper provides a robust empirical framework for policymakers to transition from quantitative employment targets to qualitative, sustainable labour integration.