Social progress in cities and rural areas of the EU

This paper presents a novel approach to measuring sustainable and inclusive wellbeing in cities and rural areas of the European Union (EU). By introducing a measure of social progress in cities, towns and suburbs, and rural areas, the study explores – for the very first time – the contribution of social, economic and environmental dimensions to sustainable and inclusive territorial well-being in the EU. The analysis reveals significant disparities in social progress between urban and rural areas of the EU, with cities generally exhibiting higher overall levels of social progress. The findings suggest that cities often serve as hubs of opportunity, offering a highly skilled workforce, a vibrant job market and a high level of inclusiveness. However, severe challenges are present in cities, particularly in terms of housing and the quality of the environment. The urban–rural divide in social progress has far-reaching consequences for the well-being of EU citizens, with a larger divide associated with a higher risk of poverty and social exclusion, a weaker labour market integration of young graduates and a wider gender employment gap. The results of this work may have important implications for the EU cohesion policy. To address the urban–rural divide and promote inclusive and sustainable economic development, the EU’s cohesion policy is more than ever of paramount importance to support critical investment in housing, in the green and just transition, in achieving energy efficiency and reducing energy poverty, and in social inclusion, thereby promoting sustainable and inclusive development across all EU territories.