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Exploring conditions for EU growth given a shrinking workforce

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Abstract:

The decline in the working‐age population in Europe will place its welfare system under strain unless it can maintain the growth of the pre‐crisis decade (1999‐2008). Increases in labour force participation rates and increases in productivity are both necessary. This chapter looks at some of the impacts of different labour‐supply development scenarios on Europe's economic growth paths and the productivity yields necessary to achieve those scenarios, in line with the Europe 2020 commitments. Potential contributors to better employment performance are examined, including regional development, mobility and migration policies, and progress in education. Single policy strands ‐ such as activation measures, more open migration and structural policy ‐ will not be sufficient to meet growth objectives, and a longer time horizon is necessary as new challenges will arise beyond 2020.

Document Type: Review Article

Publication date: 2012-06-01

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