Older workers to outstrip freshers in European labour markets in 2010
15 Mar 2010
A recent study conducted by Allianz shows that in 2010, for the first time the number of people aged between 60 and 65 will significantly outstrip the number of new entrants to the job market in the European Union.
Currently, the EU is home to approximately 28.6 million people aged 15 and 20. And 28.8 million EU residents are between 60 and 65 years of age. This means that the number of people approaching or entering retirement will be around 200,000 greater than the number of school-leavers this year.
''As the baby boomer generation moves into retirement, this gap is set to widen over the next few years, rising to 8.3 million by 2030,'' explains Professor Michael Heise, chief economist and head of corporate development at Allianz.
Similar trends are predicted for other G-20 states, notably Russia, Canada, South Korea and China. The situation is already more dramatic in Japan than in the EU, where there are around 6 million school-leavers versus 10 million in the 60- to 65-year age bracket. In the US, on the other hand, the number of people of working age is still on the rise. This is due to the country's attractiveness as an immigration destination, as well as to a rise in the birth rate.
The EU's unemployment problems will not resolve themselves solely as a result of the shrinking working population. ''Even today unemployment is largely a structural issue, i.e. the educational and training background of many job-seekers is irreconcilable with the requirements of the labour market,'' says Heise. The demographic trend will not necessarily lead to a decline in economic dynamics and the further marginalisation of Europe vis à vis ''Chinamerica''.
"Nevertheless, it is essential to adopt working conditions to the needs of an aging workforce," the study notes.
