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European Edition
8th January 2026
 
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THE HOT STORY

Portugal urged to integrate older workers

The Organisation for Economic Co-operation and Development (OECD) has recommended that Portugal enhance the integration of older workers, the long-term unemployed, and young people into the local labour market. In its 'Economic Survey', the OECD noted that labour shortages and an ageing population could hinder Portugal's economic growth. Key sectors including manufacturing, construction, and healthcare are particularly affected. The OECD suggested measures such as lifelong learning policies and incentives for longer working lives. It emphasised the need for improved adult education quality and better working conditions to support older workers and reduce income inequality.
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GUIDE

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LEGAL

UK ministers cut estimated annual cost to business of worker rights act

The estimated cost to UK business of Labour’s flagship workers’ rights reforms has been cut from about £5bn to £1bn (€1.15bn). The Employment Rights Act provides a range of tougher employment rights on issues such as sick pay, paternity leave and the end of zero hours contracts, but plans to allow employees to sue for unfair dismissal on day one of their employment were scrapped in favour of a six month threshold following a backlash from businesses. Officials admitted, however, that the revised estimate related mainly to the administrative costs of implementing the new rules, not the impact of the changes on business models and the economy. With the unemployment rate now at 5.1%, employers remain concerned about those issues in the Bill yet to be finalised.  
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WORKFORCE

Europe braces for more travel chaos

Commuters across Europe are facing significant travel disruptions due to a severe cold snap. In Paris, authorities have mandated a 40% cancellation of flights at Charles de Gaulle airport. Dutch airline KLM has cancelled 600 flights to manage the situation. In the Netherlands, public transport is severely affected, and people are advised to stay home. The cold snap is expected to worsen, with heavy snowfall predicted, impacting travel across multiple countries. "We haven't experienced such extreme weather conditions in years," KLM spokesperson Anoesjka Aspeslagh said.

German unemployment rate at highest level in 12 years in 2025

Unemployment in Germany reached its highest level in 12 years in 2025, with 2.948 million jobless, according to the country's labour office. Andrea Nahles, head of the office, said: "2026 is not a year of the all-clear, but a year with noticeable challenges." Despite a slight easing expected mid-year, the labour market remains weak, with a stable jobless rate of 6.3%.
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HEALTH & WELLBEING

Reykjavík seeks specialist to reduce sickness absence rate

The City of Reykjavík is hiring a specialist to address rising sickness absence among its employees. The full-time role focuses on attendance management within a three-person team aligned with the city’s attendance policy. Key responsibilities include advising managers on attendance discussions and conducting return-to-work interviews. Last year, the cost of employee sickness absence reached ISK 6.2bn, with total absence rising from an average of 6.6% (2018-2021) to 8.6% in 2022. The City Council recently approved a proposal for more proactive sick leave management.
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TECHNOLOGY

CFOs are bullish on productivity growth

Chief financial officers at major UK firms are increasingly optimistic about technology investments and AI's potential to enhance productivity. A poll from Deloitte shows that nearly 80% of CFOs expect improved business performance and productivity growth over the next five years. Richard Houston, CEO of Deloitte UK, said: "CFOs are significantly more positive about improving performance through deploying AI." Despite rising risk appetite, external uncertainties remain a concern, with geopolitics cited as the top risk.
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REGULATION

France seeks exemption for fertilisers from EU carbon tax

France is requesting an exemption for fertilisers from the EU's carbon border adjustment mechanism as the government aims to alleviate financial pressure on farmers. The proposal, set to be discussed at an upcoming EU meeting, highlights concerns regarding potential market disruptions caused by the new carbon tax measures. France's initiative has gained backing from several other member states, indicating a broader push for consideration of agricultural pressures within climate policy discussions.
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INTERNATIONAL

Gig workers in India fight for fair treatment and benefits

Millions of informal workers in India rely on app-based platforms, facing precarious conditions in the gig economy. Raju Kumar, a delivery worker for Zomato, highlighted the lack of job security, observing: "All it requires is one customer complaint . . . and I am out without notice." Workers like Santosh Pawar and Priya Sharma echoed such sentiments, expressing frustration over arbitrary account suspensions and inadequate support during injuries. Labour groups are advocating for minimum income and better protections, while the Indian government has introduced new labour laws to improve conditions for gig workers.
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OTHER

Lisbon lifts ban on new holiday lets

Lisbon has lifted its ban on new holiday lets after restrictions introduced in 2019 failed to curb housing costs and coincided with continued price rises of more than 10% last year. Politicians overturned the moratorium in December, acknowledging unintended consequences, while retaining tighter licensing rules. Property prices and accommodation costs continued to climb despite the crackdown, prompting the policy rethink. The move adds to wider European debate over short-term lets, including those listed on Airbnb, and their impact on housing affordability.
 
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