Demographic ageing in the EU and the impact on labour-employment prospects and pensions

Abstract

The paper examines the potential volume of
employed population, seen from the supply
point of view, in selected European countries,
in the context of the expected demographic
ageing. Our findings indicate that disparities
across EU are rather pronounced. Future
potential employment varies across countries,
because of diverse working-age population
trends and various employment rates by age
and sex. In a declining working-age population
context, an increase in the employment rates
could prevent or at least moderate labour
force shrinkage. As for pensions, the paper
underlines the importance of the employment
potential of the non-employed in order to
compensate for demographic ageing and
therefore for the expected increase in the
number of pensioners.