Demographic Shifts and Economic Challenges in the European Union
Addressing the Impact of Aging Populations on Social Security, Healthcare and Labour Markets
Copyright (c) 2024 Szűcs Petra
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Abstract
This study explores the significant demographic shifts and economic challenges faced by the European Union (EU), focusing on the implications of an ageing population. As life expectancy increases and birth rates decline, the proportion of elderly individuals in the EU rises, placing substantial pressure on social security, healthcare systems and labour markets. This paper examines the multifaceted impacts of these demographic changes, including the strain on healthcare services and pension schemes, the potential for economic growth through the productivity of senior employees, and the necessity for holistic strategies that address regional and national variations. Additionally, the research delves into the effects of the Covid–19 pandemic on demographic trends, highlighting the need for proactive policies to support an ageing populace. Through a comprehensive analysis of demographic data, labour market trends and policy initiatives, this study aims to provide a nuanced understanding of the repercussions of an ageing population and proposes strategic measures to mitigate the associated challenges while leveraging opportunities for economic development and innovation.
Keywords:
References
ALLEN, Joanne – ALPASS, Fiona M. – SZABÓ, Ágnes – STEPHENS, Christine V. (2021): Impact of Flexible Work Arrangements on Key Challenges to Work Engagement Among Older Workers. Work, Aging and Retirement, 7(4), 404–417. Online: https://doi.org/10.1093/workar/waab010
ALVES, Joel – LIMA, Tânia – GASPAR, Pedro (2022): The Sociodemographic Challenge in Human-Centred Production Systems – A Systematic Literature Review. Theoretical Issues in Ergonomics Science, 25(1), 44–66. Online: https://doi.org/10.1080/1463922X.2022.2148178
BERG, Peter – PISZCZEK, Matthew (2021): Organizational Response to Workforce Aging: Tensions in Human Capital Perspectives. Work, Aging and Retirement, 8(1), 7–24. Online: https://doi.org/10.1093/workar/waab026
BOATMAN, Andrea (2021): Understanding Today’s Multigenerational Workforce: Benefits, Challenges, and 9 Best Management Practices. AIHR, 24 March 2021. Online: https://www.aihr.com/blog/multigenerational-workforce/
BOER, Hiske den – VUUREN, Tinka van – JONG, Jeroen de (2021): Job Design to Extend Working Time: Work Characteristics to Enable Sustainable Employment of Older Employees in Different Job Types. Sustainability, 13(9). Online: https://doi.org/10.3390/su13094719
CARRERA, Letizia (2023): Active Aging and Urban Policies: The Space as an Instrument for an Inclusive and Sustainable City. Frontiers in Sociology, 8. Online: https://doi.org/10.3389/fsoc.2023.1257926
CLARK, Robert (2020): Employer Perceptions and Responses to an Aging Workforce: Differences by Industry, Occupation, and Size. Innovation in Aging, 4(S1), 809–809. Online: https://doi.org/10.1093/geroni/igaa057.2941
CLARK, Robert – RITTER, Beth (2020): How are Employers Responding to an Aging Workforce? NBER Working Paper 26633. Online: https://doi.org/10.3386/w26633
CUI, Shengbo (2023): Study on the Problems and Countermeasures of an Aging Society. International Journal of Frontiers in Sociology, 5(12), 159–175. Online: https://doi.org/10.25236/IJFS.2023.051225
EGDELL, Valerie – MACLEAN, Gavin – RAESIDE, Robert – CHEN, Tao (2021): Workplace Preparedness for an Ageing Workforce: A Case Study. International Journal of Sociology and Social Policy, 42(9–10). Online: https://doi.org/10.1108/IJSSP-07-2021-0175
European Commission (2021): The 2021 Ageing Report Economic & Budgetary Projections for the EU Member States (2019–2070). European Economy Institutional Paper no. 148. Online: https://doi.org/10.2765/84455
European Commission (2022): EU Action to Address the Energy Crisis. Online: EU action to address the energy crisis (europa.eu)
Eurostat (2022a): Employment – Annual Statistics. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Employment_-_annual_statistics
Eurostat (2022b): Functional and Activity Limitations Statistics. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Functional_and_activity_limitations_statistics
Eurostat (2022c): Household Composition Statistics. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Household_composition_statistics
Eurostat (2022d): Living Conditions in Europe – Poverty and Social Exclusion. Online: Living conditions in Europe - poverty and social exclusion - Statistics Explained (europa.eu).
Eurostat (2022e): Population and Population Change Statistics. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Population_and_population_change_statistics
Eurostat (2022f): Short-term Update of the Projected Population (2022–2032). Online: https://doi.org/10.2908/PROJ_STP22
Eurostat (2022g): Youth Unemployment. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Youth_unemployment.
Eurostat (2023a): Population Projections in the EU. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?oldid=497115#Population_projections
Eurostat (2023b): Population Structure and Ageing. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Population_structure_and_ageing.
FANG, Evandro et al. (2020): A Research Agenda for Ageing in China in the 21st Century (2nd edition): Focusing on Basic and Translational Research, Long-Term Care, Policy and Social Networks. Ageing Research Reviews, 64. Online: https://doi.org/10.1016/j.arr.2020.101174
FARR‐WHARTON, Ben – BENTLEY, Tim – ONNIS, Leigh-ann – CAPONECCHIA, Carlo – NETO, Abilio – O’NEILL, Sharron – ANDREW, Catherine (2023): Older Worker-Orientated Human Resource Practices, Wellbeing and Leave Intentions: A Conservation of Resources Approach for Ageing Workforces. International Journal of Environmental Research and Public Health, 20(3). Online: https://doi.org/10.3390/ijerph20032725
FILHO, A. – TILLMANNS, T. – CORRIGAN, T. (2023): Ageing Organizations: Reviewing the Literature and Making a Few Recommendations for Human Resource Management. Merits. Online: https://doi.org/10.3390/merits3040038
GOUJON, A. et al. (2021): The Demographic Landscape of EU Territories: Challenges and Opportunities in Diversely Ageing Regions. Publications Office. Online: https://doi.org/10.2760/658945
HR Cloud (2022): Who Is Considered to Be a Frontline Worker? 20 June 2022. Online: https://www.hrcloud.com/blog/who-is-considered-to-be-a-frontline-worker
International Labour Organization (2023): Flexible Working Hours Can Benefit Work-Life Balance, Businesses and Productivity. 6 January 2023. Online: https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_864986/lang--en/index.htm
International Monetary Fund (2021): Policy Responses TO Covid-19. Online: https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19.
KLIMCZUK, Andrzej – TOMCZYK, Łukasz (2020): Perspectives and Theories of Social Innovation for Ageing Population. Lausanne: Frontiers Media SA. Online: https://doi.org/10.3389/978-2-88963-620-4
KOHLI, Neena – CHAWLA, Sarabjeet – BANERJEE, Aditya – SRINETE, Taru (2020): Ageing in Developing Societies: Issues and Challenges. Psychology and Developing Societies, 32(2), 153–175. Online: https://doi.org/10.1177/0971333620943408
KOSOWSKI, Tanja (2020): Older Workers from the Viewpoint of Their Younger Colleagues. Do Organisations Fail to Harness the Potential of an Ageing Workforce? International Economic Review, 6(2), 83–94. Online: https://doi.org/10.15678/IER.2020.0602.06
LAGACÉ, Martin – TASYUREK, Ezgi – RODRIGUE-ROULEAU, Philippe – BERGERON, Caroline – LEVASSEUR, Melanie (2023): Ambivalent Ageism in the Workplace and Its Impact: Exploring Perceptions of Older Workers. Innovation in Aging, 7, 63. Online: https://doi.org/10.1093/geroni/igad104.0202
LANGTON, James (2022): Immigration Boosts Workforce, Combats Aging. Investment Executive, 26 October 2022. Online: https://www.investmentexecutive.com/news/research-and-markets/immigration-boosts-workforce-combats-aging/
LI, Yixuan – TUREK, Konrad – HENKENS, Kene – WANG, Mo (2022): Retaining Retirement-Eligible Older Workers Through Training Participation: The Joint Implications of Individual Growth Need and Organizational Climates. The Journal of Applied Psychology, 108(6), 954–976. Online: https://doi.org/10.1037/apl0001065
MARTON, Ádám (2018): Az idősödés problémaköre az Európai Unióban. Európai Tükör, 21(1), 59–79. Online: https://folyoirat.ludovika.hu/index.php/eumirror/article/view/1254/575
MASON, Andrew – LEE, Rondald (2022): Six Ways Population Change Will Affect the Global Economy. Population and Development Review, 48(1), 51–73. Online: https://doi.org/10.1111/padr.12469
OECD (2023): Retaining Talent at All Ages. Paris: OECD Publishing. Online: https://doi.org/10.1787/00dbdd06-en
PASCHALINE, Fransisca – PRASTITA, Rama – MEGA, Ericka (2023): Japan’s Aging Society: A Challenge to Japan’s Diversity & Social Inclusion. Transformasi Global, 10(1), 20–34. Online: https://doi.org/10.21776/ub.jtg.010.01.3
PENG, Lu – CHAN, Alan (2020): Adjusting Work Conditions to Meet the Declined Health and Functional Capacity of Older Construction Workers in Hong Kong. Safety Science, 127. Online: https://doi.org/10.1016/j.ssci.2020.104711
QVIST, Jeevitha (2023): Managing an Ageing Workforce: Workplace Retention Practices and Early Labour Market Exit. Socio-Economic Review, 22(3), 1477–1500. Online: https://doi.org/10.1093/ser/mwad063
RICHTER, Felix (2021): COVID-19 has Caused a Huge Amount of Lost Working Hours. Weforum.org, 4 February 2021. Online: https://www.weforum.org/agenda/2021/02/covid-employment-global-job-loss/
RIEKHOFF, Aart-Jan – JÄRNEFELT, Noora – LAAKSONEN, Mikko – LIUKKO, Jyri (2023): Labour Shortages and Employer Preferences in Retaining and Recruiting Older Workers. International Journal of Manpower, 45(4), 838–863. Online: https://doi.org/10.1108/IJM-05-2023-0233
SHEYKHI, Mohammad (2020): Aging Reflects as a Socio-Economic Challenge in Asia: A Sociological Appraisal. Journal of Aging Science, 8(3), 1–8. Online: https://doi.org/10.35248/2329-8847.20.S3.002
Statista (2023): Youth Unemployment Rate in the European Union as of October 2022, by Country. Online: https://www.statista.com/statistics/613670/youth-unemployment-rates-in-europe/
TAYLOR, Mary A. – BISSON, Jennifer (2020): Changes in Cognitive Function: Practical and Theoretical Considerations for Training the Aging Workforce. Human Resource Management Review, 30(2). Online: https://doi.org/10.1016/j.hrmr.2019.02.001
United Nations (2022): Teleworking during COVID: Risks, Benefits and Steps to a ‘New Normal’. 2 February 2022. Online: https://news.un.org/en/story/2022/02/1111062
VERLINDEN, Neelie (2022): Aging Workforce Challenges: Trends, Statistics and Impact. AIHR, 18 July 2022. Online: https://www.aihr.com/blog/aging-workforce-challenges/
VIDOVIC, Luka (2022): Industries Most and Least Impacted by COVID-19 from a Probability of Default Perspective – January 2022 Update. Spglobal.com, 11 February 2022. Online: https://www.spglobal.com/marketintelligence/en/news-insights/blog/industries-most-and-least-impacted-by-covid-19-from-a-probability-of-default-perspective-january-2022-update
WYMAN, Oliver (2023): The Twin Trends of Aging and Automation: Leveraging a Tech-Empowered Experienced Workforce. Marsh & McLennan Advantage Insights. Online: https://www.marshmclennan.com/content/dam/mmc-web/insights/publications/2019/nov/AA2FINAL.pdf