Abstract:

The Habitat sectors in Europe represent a diverse array of industries that play a fundamental role in shaping the physical environments where people live, work, and engage in communal activities. These sectors, comprising furniture, mattresses, woodworking, construction, retrofitting, and household linen, are characterised by their labour intensity, dynamism, and significant contribution to economic growth.

With a predominant presence of Small and Medium-sized Enterprises (SMEs) and micro firms, these industries are recognized globally for their creativity, adaptability and innovation. For instance, according to the report of EU Environmental Bureau (2019), the furniture industry alone employs approximately 1 million workers across 130,000 companies, generating an annual turnover of approximately €96 billion. Moreover, these sectors contribute substantially to the European Union's intellectual property landscape, with around 12% of registered designs originating from this domain.

Despite their economic significance, the Habitat sectors face pressing challenges in transitioning towards digitally supported, sustainable and circular economic models while maintaining competitiveness and fostering social well-being. Recognizing the imperative for such a twin green & digital transition, the EU Economic and Social Committee advocates for a paradigm shift from linear to circular models within the furniture sector, emphasizing the recovery of local product value, stimulation of economic growth, and creation of employment opportunities. This requires the strategic integration of innovation with cultural heritage, fostering opportunities for new markets and target consumers, highly skilled workers and the use of sustainable practices across the entire product lifecycle.

Moreover, the emergence of green and digital jobs within the Habitat sectors underscores the need for a skilled workforce capable of navigating this change. Rural regions face the dual challenge of retaining economic viability while appealing to younger generations and remaining competitive in an increasingly urbanized global landscape. Addressing these challenges requires a concerted effort to improve working conditions, provide training opportunities, and promote intergenerational solidarity. Initiatives like NewEcoSmart (NES) present a significant opportunity to address these challenges effectively.

NewEcoSmart (NES) is a transnational 24-month Horizon Europe European Social Fund project (GA. 101102499), launched in August 2023, aimed at revitalizing rural areas and empowering individuals aged 45+, SMEs and micro firms to adapt to the green and digital transition within the Habitat-related sectors. NES adopts an inclusive social innovation approach, focusing on equipping individuals with the necessary skills to thrive in the evolving labour market while promoting social entrepreneurial skills and fostering a mindset aligned with circular and socially responsible business models. The project encompasses various aspects of skills development, entrepreneurship promotion, and sustainable business practices.

In conclusion, initiatives like NES are fundamental to improving the complex context of Habitat sectors, fostering inclusivity, sustainability, and economic growth. By addressing the evolving needs of the workforce and promoting innovation and sustainability, such projects contribute to the achievement of EU's broader goals of sustainable development and social well-being.

Keywords:

Habitat sector, Circular Economy, Rural areas, Adult upskilling/reskilling, Green Transition, Digital Transition, Twin Transition, Social Innovation, SMEs.