Cost of Living Crisis Redefining Work in Europe: Most Say Wages Aren’t Keeping Up

Insights from a survey of 1,000 employed adults across Germany, France, Spain, and Italy reveal how inflation, job insecurity, and economic pessimism are reshaping career decisions and financial wellbeing across Europe. Despite national differences, workers across the region are under pressure, and many are losing faith in the traditional promise that hard work leads to financial stability.

Key Findings at a Glance

Support for UBI: 64% support implementing a Universal Basic Income (UBI) in response to inflation and instability.
Income vs. Inflation: Only 18% of respondents say their income has fully kept up with inflation. A third (34%) say wages are not keeping up with inflation at all.
Cutbacks & Strain: 59% have reduced discretionary spending. One in four (26%) have cut back even on essentials like food or utilities.
Debt & Gig Work: 11% have taken on additional work to stay afloat. 8% have borrowed money or taken on more debt.
Financial Anxiety Is Widespread: Nearly 40% feel anxious about money weekly or daily.
Faith in Meritocracy Is Fracturing: 69% of respondents say they’ve lost faith or have doubts that hard work leads to financial stability.
Layoff & Recession Fears: 44% expect more layoffs in 2025. 70% are moderately or extremely concerned about a recession.
Trade & Geopolitical Concerns: 91% are worried global trade tensions will further raise the cost of living.

Top Financial Fears in 2025

Inflation is the top concern for European workers, with 59% naming the rising cost of living as their biggest financial worry. Other major anxieties include:

Political or global instability (34%)
Healthcare or insurance costs (24%)
Lack of savings (23%)
Housing expenses (21%)
Job loss or unemployment (20%)

Inflation Is Reshaping Daily Life

The cost of living crisis in Europe is forcing workers to make hard financial choices:

60% have cut back on non-essential spending like travel and dining.
34% have delayed major purchases.
26% have reduced spending on basic necessities such as food and utilities.
14% want to retrain or upskill but can’t afford the time or cost.
5% have downsized their housing or moved in with family.
4% have postponed plans to have children.

Workers Are Bracing for Uncertainty

If they lost their jobs tomorrow:

53% say they could only go three months or less without income.
44% expect layoffs to rise this year.
28% are extremely concerned about a recession, with another 42% moderately concerned.

Despite these pressures, 59% say they would not be willing to move for a better job, revealing how immobility and local ties may compound financial stress.

What this means: Economic strain is pushing European workers to make difficult sacrifices and live with a high degree of uncertainty. Many are tightening their budgets, putting life plans on hold, and feeling unprepared for potential job loss. Most remain rooted where they are, even in the face of better opportunities elsewhere.

Public Sentiment Is Shifting Toward Systemic Reform

A generational shift may be underway:

69% doubt hard work guarantees financial stability.
64% support UBI.
34% cite political/global instability as a top financial concern for 2025.

What this means: Confidence in the link between hard work and financial security is eroding, and support for broad economic reforms is gaining traction.

Technology Adds to the Anxiety

Tech transformation is another growing worry:

44% are concerned that AI or automation will negatively impact their job within the next 3 to 5 years.
5% say it already has had an impact.
Just 12% are currently pursuing formal education or retraining to prepare.

What this means: Workers are increasingly anxious about how emerging technologies could disrupt their jobs, yet few feel equipped or are taking steps to adapt.

For press inquiries, contact Elizabeth Buccianti, senior manager public relations, at elizabeth.buccianti@bold.com.

Methodology

The LiveCareer European Cost of Living & Career Confidence Report was conducted via Pollfish on May 28, 2025, with 1,000 employed adults surveyed across Germany, France, Spain, and Italy. Respondents represented a range of industries, income levels, ages, and job types. The survey included multiple-choice and scale-based questions to assess financial pressure, job security, economic confidence, and workforce behavior in response to inflation, automation, and policy change.

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