A recent European Commission research warns that the EU’s rapidly aging population affects competitiveness, workforce shortages, public budgets, and regional inequities. The study stresses that member states must move quickly to alleviate the effects of a decreasing workforce.
Each EU member state has distinct difficulties due to a rapidly aging populace. Housing and population density in the Netherlands, population reduction in some Spanish regions, dropping birth rates in Italy, and brain drain in Croatia are concerns.
EU population, at over 448 million, will peak around 2026 and fall, losing 57.4 million working-age people by 2100, according to the analysis. The elderly-to-working-age reliance ratio is expected to rise from 33% to 60% by the century’s conclusion.
The demographic change risks labor market shortages that might slow GDP, productivity, and innovation, hurting the EU’s global competitiveness. The shrinking workforce will drain state funds from renewable energy and cutting-edge technology developments.
The Commission advises member states to close the gender wage gap, improve work-life balance, give tax incentives, lower childcare expenses, and help young people find good employment and affordable housing to solve this challenge. Upskilling and flexible work hours empower older people, according to the survey.
Importantly, the paper urges “managed legal migration” to fill employment openings and capitalize on the “silver economy.” Legal migration is not the only answer to the demographic crisis, but the Commission emphasizes its significance.
As the EU faces demographic difficulties, the research underlines the diversity of member states and the need for specialized policies to suit each nation’s unique circumstances.
EU urgently addresses aging population, promotes migration to fill gaps
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