The EU population is rapidly aging

The latest report from the European Commission has confirmed alarming theories: the EU is aging too fast. In addition to a highly stratified society, the rapid aging of the population will lead to financial, social and labor market difficulties.

There are about 448 million people living in the EU today, if statistics are to be believed. The population will peak in 2026 and then begin a slow but inevitable decline. By 2100, the Alliance will have lost 57.4 million people of working age. It is also expected that the dependency ratio (the ratio of elderly to working-age people) will rise from 33% to 60%.

From a financial perspective, this will increase the pension pressure on budgets. From a labor perspective, it will lead to a loss of economic competitiveness. If there are not enough workers, production, development and technical progress will slow down. All this will lower the overall ranking of countries in comparison with other world economies.

The process has not yet entered an irreversible phase. Brussels has issued a series of recommendations to combat the difficulties that are emerging: "closing the gender pay gap, improving work-life balance, offering tax benefits, reducing childcare costs, and making it easier for young people to access quality jobs and affordable housing earlier in their adult lives."

Enabling seniors to stay in the workforce longer will also be important. Retraining programs, flexible working arrangements, and avoiding stereotypes about older people can help.

The third key issue in the EC report was managed migration. This is something that has been discussed more than once. It is to some extent characteristic of Luxembourg, for example. By attracting skilled workers from abroad, the EU will be able to fill gaps in the balance of its labor market. However, for such a measure to work effectively, a revision of the countries' migration policies and employment principles is required.