In the view of sustainable economic growth, increasing globalization, shorter times of innovation and technology progress the European labour market has to face a lot of challenges in the following years. One of these upcoming challenges is the demographic change. Current trends of increasing life expectancy and declining birth rates in the European Union are going to result in an ageing population and in a declining workforce. Latest demographic projections show that the working age population, people between ages of 15-64 will decrease by around 15% in the European Union in the next 50 years. As a result, Europe is expected to change from a society with four working-age people for each person over 65 towards a ratio of 2 to 1 in 2050. The demographic change is influenced by a number of different factors like for instance gender equality, work-life balance and also by labour market conditions of the country. This turning of more and more older people getting retired and fewer workforces is going to bring up problems in financial sustainability of pensions and also can impact the health care systems.
Furthermore there could come up a lack of educated workers for certain jobs if the old experienced employees retire and there are not enough adequate recruiters for these positions. This demographic change is a long-term effect of Europe’s society and the EU and also companies in the European labour markets must introduce strategies for dealing with that challenge in the future, because the effects of it will only be seen afterwards, and then it is even harder to react.