Details
- Publication date
- 27 November 2023
Description
ESDE quarterly reviews periodically provide an overview of recent social and labour market developments in the EU, accompanied by specific thematic analyses.
The thematic part of this review focuses on the impact of demographic changes on labour market outcomes and the potential of pension reforms to counteract these projected trends. This is an important topic in the context of demographic change in the EU over the next decades and the corresponding impact on employment rate, economic dependency ratio and social security contributions.
Looking at pension reforms, the thematic focus shows that increasing the statutory and effective retirement age can play an important role for addressing the impending challenges stemming from population ageing and decline. It can at least in part mitigate the impact of ageing on employment and economic dependency.
Nevertheless, it is also highlighted that a more comprehensive approach encompassing broader labour market reforms may be required to ensure the financial stability of social security systems in the long term, given the projected increases of recipients paired with higher social security contributions per employed person.
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