June 2025 – A significant shift is underway in Europe’s labor market as more people are choosing to become owners of the workplaces where they work. The number of worker cooperatives—businesses owned and democratically governed by their employees—is growing steadily, delivering economic stability, community resilience, and worker empowerment.
A Thriving Cooperative Landscape
Across the European Union, cooperatives operate in abundance. There are approximately 250,000 cooperative enterprises, collectively owned by around 163 million Europeans, and they employ 5.4 million people, equivalent to one in every twelve workers in the EU economy . Use is widespread in sectors like agriculture, forestry, and banking, where cooperatives frequently control a substantial market share.
Worker Cooperatives on the Rise
In countries like Spain, France, and Italy, worker-owned cooperatives are particularly vibrant. Spain boasts over 17,000 worker co-ops that employ more than 313,000 members. In 2021 alone, 1,287 new worker cooperatives were established—an 11.4 percent increase from the previous year—which created 3,548 first-time jobs . France contributes around 300 new co-ops annually, reflecting a steady, sustained growth . Since the 2008 crisis, the number of cooperatives has grown by roughly 75 percent overall, with worker cooperatives making up over three-quarters of the growth .
Resilience and Longevity
Academic studies consistently highlight that worker cooperatives outperform conventional firms in terms of resilience. In Italy, they show an 87 percent survival rate after three years—far above the 48 percent average for all new businesses. In France, survival rates stand between 80–90 percent, compared with 66 percent for other enterprises. In the UK, about 76 percent of worker co-ops survive their crucial first five years, against 42 percent of traditional startups .
Global Recognition and Support
2025 marks the United Nations’ International Year of Cooperatives, celebrating their impact in driving sustainable development, social inclusion, and economic resilience . In March 2025, the European Commission hosted a conference emphasizing cooperatives as key instruments for economic stability and social transformation .
Inspirational Examples: Mondragón and the UK
The Mondragón Corporation in Spain stands as the world’s largest worker cooperative, with over 70,000 employees. It spans areas like manufacturing, retail (Eroski), finance, and education, demonstrating how democratic ownership fosters workplace dignity, solidarity, and innovative capacity . In the UK, employee ownership has also thrived; since 2014 tax incentives have enabled 2,100 Employee Ownership Trusts, employing around 150,000 workers .
Why Worker Cooperatives Matter
These enterprises perform consistently better in downturns, preserve jobs in economic crises, and distribute value more equitably. By involving workers in decision-making and sharing profits, cooperatives nurture increased productivity, commitment, and social cohesion. They exemplify a sustainable alternative to hierarchical corporate models—one that places people at its core.
Looking Ahead
As Europe deepens its social and economic transformation, worker cooperatives are emerging not only as viable enterprises but as pivotal actors in regional development, democratic engagement, and community resilience. With international backing and favorable research outcomes, they offer a scalable model for building fairer, more sustainable economies.
