Ageing and its determinants : potentialities and challenges fot the employment in Southern Europe

The population age structure in Europe is changing quickly. The unprecedented and unstoppable ageing process has a strong impact on the labour market because the number of working-age people is shrinking numerically, and the dependent old-age population is increasing faster as well as the average age of workers. These dynamics, which will become particularly intense in the next two decades especially in Southern European countries, are mainly due to persistently low fertility, well below the replacement level. Evidence suggests that fertility levels are lowered by the insufficient integration of women into the labour market. In addition, youth unemployment, job instability, and lower incomes are likely to delay economic independence, increasing the risk of childlessness. Not even the large flows of international migrants, which have characterised Southern European countries in the last decades, seem to be sufficient to face the negative effects of ageing.rnThe aim of this paper is twofold. On the one hand, through a critical review of the existing literature and the presentation of recent statistical data, it highlights the population dynamics in the Southern European context and what is reasonable to expect in the next decades. On the other hand, it attempts to contribute to a better understanding of how demographic changes and labour market dynamics are mutually interrelated.rnAlongside these elements of concern, the paper also discusses approaches and points of view that suggest elements of optimism for the future. Mature workers and the elderly are changing their characteristics rapidly and in the coming decades they will be characterised by levels of education and health conditions much better than today, with a positive impact on their wellbeing and work productivity.