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June 10, 20262026 PHS Employment Monitor finds affordability crisis hitting home care providers, users, user-employers, and workers across Europe
More than 8,000 respondents across 33 countries highlight the growing pressures faced by the Personal and Household Services sector
The Personal and Household Services (PHS) social partners – EFFAT, EFFE, EFSI, and UNI Europa – unveil the 2026 edition of the PHS Employment Monitor.
Based on a large-scale European survey of more than 8,000 people across 33 countries, the report provides a comprehensive picture of the challenges faced by the sector today. Participants included 354 PHS provider organisations, nearly 400 service users, almost 1,900 user-employers, and more than 5,500 workers.
The findings point to a shared challenge across the sector: improving pay and working conditions while ensuring that essential care and household services remain affordable and accessible.
With a cumulative EU-wide inflation rate of 6.2% since 2024, the report highlights how the cost-of-living crisis is affecting providers, households and workers alike, underscoring the need for greater public investment in this essential social infrastructure.
Former Commissioner of Jobs and Social Rights, Nicolas Schmit, writes in his foreword, “Millions of people applauded health and social care workers during the height of the pandemic, yet today competitiveness and simplification are on the tip of everyone’s tongues. One finding that stands out from the survey is the persistence of the cost-of-living crisis and growing concerns about affordability for both sides in the employment relationship. All democratic forces have the task to tackle this.”
Affordability pressures felt across the sector
Affordability emerged as one of the strongest themes throughout the survey.
Nearly 80% of service users reported that the cost of PHS services is either a minor or major concern. Respondents indicated that losing access to these services would negatively affect their work-life balance, home environment, and quality of care.
Among service users, 52.1% said losing access to PHS services would reduce their work-life balance, while 46.5% said it would create a more negative home environment.
The findings suggest that affordability concerns are no longer affecting only households but are placing pressure on the entire sector.
Recruitment and retention challenges continue
Almost half (47.%) of home care workers surveyed reported having considered leaving the PHS sector during the past three years, with low pay identified as the main reason.
Provider organisations are experiencing the consequences directly. Two-thirds reported that recruiting workers is difficult or very difficult, while around 40% face challenges retaining staff. Among organisations struggling with retention, eight in ten cited low wages as a key factor.
The report also highlights broader workforce challenges. Only one quarter of workers reported working a standard 35-40 hour week, while six in ten said they had experienced musculoskeletal disorders such as back pain or tendinitis as a result of their work.
The findings relating to live-in care workers are particularly concerning. Nearly six in ten workers who are regularly on call reported sleep difficulties linked to their working conditions, while many also reported experiencing inadequate living conditions.
Affordability and undeclared work remain closely linked
The survey findings indicate that affordability pressures continue to contribute to undeclared work across the sector.
Among workers who considered undeclared work sometimes justifiable, around half said that formal employment reduces earnings too significantly. Among service users expressing similar views, more than one third pointed to the high cost of declared services.
These findings reinforce the need for policies that make quality, declared PHS services more accessible and affordable.
Strengthening social dialogue and professionalisation
The survey also highlights the importance of social dialogue and workforce development.
Trade unions remain a key source of information for workers regarding their rights. Workers who are not union members were significantly more likely to rely on social media, friends and family, or government websites for information.
At the same time, four in ten provider organisations reported that they do not operate under a sectoral or company-level collective agreement. Combined with ongoing recruitment and retention challenges, this points to the need for stronger social dialogue structures and greater support for workforce development.
More than one third of provider organisations also identified better training opportunities as a key priority for strengthening the sector.
A call for greater recognition of the sector
One of the strongest points of agreement among all respondent groups was that the PHS sector deserves greater institutional recognition and respect.
The findings suggest that many of the sector’s persistent challenges, including underinvestment, workforce shortages, informality and fragmented structures, remain insufficiently addressed despite the essential role PHS plays in supporting households, care recipients and labour market participation across Europe.
About the report
The 2026 PHS Employment Monitor was produced within the framework of the EU-funded Scale Up project and builds on the success of the first edition, published in 2024.
The report provides evidence-based recommendations for national and European policymakers to strengthen the sector, improve working conditions and ensure access to affordable, high-quality Personal and Household Services across Europe.




