European Commission launches Knowledge Hub.

The European Commission has launched the Social Investment Knowledge Hub. The aim of the portal is to promote evidence-based policymaking in the fields of labour markets, skills and social policy. The Knowledge Hub was established in cooperation with the Employment Committee (EMCO) and the Social Protection Committee (SPC) and builds on the work of the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) as well as the Informal Working Group on Social Investment (IWGSI).

Political background

The Knowledge Hub is closely linked to the Council conclusions on the role of labour market, skills and social policies for resilient economies adopted in June 2024. These conclusions emphasise the mutually reinforcing relationship between economic growth and social wellbeing. They highlight that well-designed and evidence-based labour market, skills and social policies can both improve people’s social situation and strengthen innovation, productivity and labour market participation. Their contribution to human capital and productivity supports economic growth and enhances adaptability to future challenges. Investment in labour market, skills and social policies is therefore crucial for the resilience of economies.

What is social investment?

The European Commission understands social investment as public expenditure that delivers long-term benefits both for people’s wellbeing and for the economy. This includes, for example, early childhood education and care, lifelong learning, vocational training, active labour market policies and measures to promote social inclusion. However, there is no universally accepted definition of social investment. This is relevant because a common definition would be necessary to make macroeconomic effects comparable. For this reason, an Informal Working Group on Social Investment (IWGSI) was established in July 2023 on the initiative of the Spanish and Belgian Council Presidencies. The voluntary guiding principles developed by the working group were adopted by the Council of the EU and are intended to support the Member States in evaluating the impact of social investments on economic growth.

Tasks of the Knowledge Hub

Against this background, the Social Investment Knowledge Hub serves as a platform for the exchange of good practices at European and national level. It provides research and evaluation tools, offers information on support and funding opportunities, and brings together relevant documents from events and meetings. In addition, it connects users with key contact points in order to facilitate cooperation and the exchange of information. Finally, the Knowledge Hub is intended to further develop and establish work on concrete calculation methods for indicators on social investment at European level. In this way, it lays the foundation for better consideration of social investment within the framework of the European Semester.

Relevance for social security

In social security, social investment is implemented, for example, through rehabilitation measures in pension insurance, medical care in health insurance, and health and safety at work in accident insurance. It makes an important contribution to the implementation of the European Pillar of Social Rights and its Action Plan and have played a significant role in recent years in promoting upward social convergence in Europe. Social security institutions can contribute to the Knowledge Hub with their own empirical studies and modelling exercises, thereby underpinning their importance for strengthening the EU’s competitiveness.