28 Jan 2026

The impact of reforms supported by the Recovery and Resilience Facility in the area of the labour market

Alexandre Ounnas / Cinzia Alcidi / Caterina Astarita / Gabriele Freo

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The Recovery and Resilience Facility (RRF) is the EU’s flagship instrument to support post-pandemic recovery by enhancing resilience, preparedness, adjustment capacity and growth potential across Member States. Labour market reforms and investments are central to this agenda, reflecting the European Commission’s emphasis on employment, skills and the creation of high-quality jobs as drivers of cohesion and upward convergence.

This study examines how selected Member States have designed and implemented key labour market reforms under their National Recovery and Resilience Plans (NRRPs) and assesses their effects on labour market outcomes – particularly employment – and, where possible, on GDP and potential growth. The latter analysis focuses on impacts transmitted through labour market channels; macro effects related to higher public spending or total factor productivity are not modelled.

The study covers eight reforms across four Member States that were selected due to their advanced state of implementation at the start of the project – France, Greece, Portugal and Spain.

Pietro Regazzoni, Tomas Ruiz and Kyrillos Spyridopoulos of Ecorys were also authors for this study. Harry Crichton-Miller, Research Assistant at CEPS, provided research support.