The Need and Capacity for Resilience in European Labour Markets: An Inequalities in Resilience Framework

ABSTRACT Resilience has become a prominent concept in EU social and economic policy, positioned as a response to megatrends such as technological change, labour market deregulation and demographic shifts. This article critically reflects on how resilience is often conceptualised, and argues that its applications in EU policy insufficiently account for structural inequalities in individuals' and families' capacities to adapt to risks. Building on cumulative inequality theory and the prevalences and penalties framework, we propose an ‘inequalities in resilience’ framework that distinguishes between the need for resilience—measured by exposure to labour market risks—and the capacity for resilience—measured by the ability to avoid poverty when risks materialise. Using EU‐SILC data for 30 countries, 2010–2020, encompassing 3,103,097 individuals, we find that groups with greater need for resilience, particularly those with lower educational attainment and single‐parent households, show lower capacity for resilience. This pattern shows a high degree of consistency across different risks and poverty indicators, and national contexts. The framework we have presented is a diagnostic tool that can help academics and policymakers in mapping out, understanding and intervening on inequalities in resilience across social groups.