As the world becomes more interconnected, diverse and interdependent, inclusivity is no longer just an ethical issue but an economic necessity. The cost of non-inclusivity – the failure to include marginalised groups in key aspects of society – results in significant losses in terms of economic productivity.
Non-inclusivity comes at a high price for Europe’s economic performance. The exclusion of marginalised groups from the workforce, business opportunities and economic participation means that much potential talent and innovation remains untapped.
A study by McKinsey & Company found that companies with more diverse workforces (in terms of gender, race and ethnicity) are 33% more likely to outperform their less diverse peers. The Boston Consulting Group also found that diverse teams generate 19% more revenue from innovation. By failing to promote inclusivity in the workplace, European companies risk losing their competitive edge in global markets that increasingly value diverse perspectives and innovation-driven growth.
The gender gap in the European labour market alone represents a staggering loss. According to the European Institute for Gender Equality (EIGE), gender inequality costs the European economy an estimated €370 billion a year, or about 2.8% of EU GDP. The World Economic Forum suggests that closing the gender gap could add €3 trillion to the EU economy by 2050. According to the European Commission, women make up only 17% of the technology workforce in Europe. By excluding half the population from one of the fastest growing sectors, Europe risks falling behind in digital innovation.
Exclusion also affects entrepreneurship, particularly among ethnic minorities, migrants and women. While migrant entrepreneurs are twice as likely to start a business as native-born citizens (European Commission, 2018), barriers such as access to finance, discrimination and regulatory hurdles prevent many of these businesses from reaching their full potential. This results in a significant loss of potential job creation and economic contribution.
For Europe to thrive in the 21st century, inclusiveness must be at the heart of its policies and institutions. An inclusive Europe is one in which all individuals, regardless of their background, are empowered to contribute to economic growth, innovation and social well-being. Investing in inclusive education, labour market access and social inclusion not only promotes fairness, but also drives sustainable growth and strengthens Europe’s global leadership.
By addressing the costs of non-inclusion, Europe can build a more prosperous, cohesive and innovative society that fully realises the potential of all its citizens.