People love to talk about the American dream—the idea that everyone in the United States has the opportunity to succeed. But what about the European dream?
Realizing these dreams, whether on one side of the Atlantic or the other, means that people can become more educated, have access to better housing, and earn more income than their parents did before them. Economists call this “social mobility,” and it is a contributing factor to a country’s growth.
In Europe, though, Gen Zers may have a harder time moving up the socioeconomic ladder than their parents did. While Europe was once a leader in social mobility, progress has stagnated over the past decade, according to new research from McKinsey Senior Partners Massimo Giordano and Tania Holt and their coauthors. Additionally, as Europe’s population ages and its businesses need new skills, the pools of available talent are dwindling—and fast. In late 2024, the European Union’s job vacancy rate was approximately 39 percent higher than its 20-year average. Together, these forces could make life more difficult for individuals in Europe and could damage European economies more broadly.
Take Italy, one of three countries in Europe on which the authors focused their research. They found that Italy has more significant social-mobility challenges than both the United Kingdom and Germany. Youth unemployment is a notable issue: At 22 percent, Italy’s youth unemployment rate is among the European Union’s highest (compared with a global average of 13 percent). What’s more, economic obstacles and social prejudices in Italy mean that individuals from lower socioeconomic backgrounds (SEBs) have more difficulty accessing top secondary schools and universities. Across Europe, the research found that socioeconomic status can affect one’s educational achievement as well as employment access and access to high-skill jobs.
Businesses can play a key role in helping Gen Zers in Italy—and across Europe—achieve greater social mobility. Outreach and mentorship can guide university students from lower SEBs to set aspirations and navigate the start of their careers. These actions can also create a talent pipeline for organizations, helping them compete over the long term. There’s also a real need for increased mentorship and sponsorship opportunities: The authors’ research found that employees from lower SEBs, especially those 35 years old and younger, highly value these opportunities. But allies take other actions, including publicly supporting economic equality within an organization, more often than they provide mentorship and sponsorship.
Internships are another tool businesses can use to promote social mobility—though it makes a difference whether these positions are paid or not. In the United Kingdom, for example, one in five internships is unpaid. But people from lower SEBs cannot afford to accept unpaid internships, which exacerbates the employment gap between those who may have financial security and those who do not.
It’s easy to say that internships must be paid, but it’s another thing for businesses to find the resources to fund them. To support employees without making large resource commitments, businesses can partner with nonprofit organizations. One such program in the United Kingdom, called Big City Bright Future, helps young people from disadvantaged neighborhoods access education, employment, and work-based training.
If Europe wants to reclaim its status as a leader in social mobility, it will take a coordinated effort among businesses, governments, and communities to break down current barriers and invest in the next generation. When a country lifts up its youngest members, it builds a stronger future for everyone. |
