Demographic Changes and Challenges in Europe

By Dr. Karl Kuhn, Federal Institute of Occupational Health and Safety 

Germany

September 2006

During the 1960s, aging was described as a process of loss and diminution – when strength, health, physical attractiveness, and the skills one needs in working life were highly valued. Older people, and in particular older employees, were mainly regarded as falling short – in terms of the ideal of youth and its characteristics and qualities. Such an understanding was possible in a society which had raised youthfulness to the status of a cult, in which people apparently believed that the many innovations, not least in technology, meant that nothing could replace the innovative powers of the young. Today, Europe is facing both the demographic and cultural challenges of an aging population and older workforce.

Three driving forces are behind the aging of the population in Europe: fertility below replacement levels, a fall in mortality, and the approach of the baby-boomers to the retirement age. The total fertility rate seems to have reached its lowest point in 1999 at 1.45 children per woman, with the lowest post-war number of births having occurred in 2002 at nearly 4.7 million. The total fertility rate for the EU-25 increased from 1.45 children per woman in 1999 to 1.46 in 2002, but this is still low compared to 2.61 in 1960.

Meanwhile, life expectancy has increased over the last 50 years by about 10 years in total, due to higher socio-economic and environmental conditions and improved medical treatment and care. Between 1960 and the present day, the proportion of older people 65 years and over in the population has risen from 10 percent to 16 percent in the EU-25. By 2010, 69 million older people will live in the EU-15. This is more than twice the 1960 number of 34 million.

In the labor market, this demographic change is already being felt. It is true that there is an expectation that the shortfall of skilled labor will not kick in for 10 or 20 years. But the phenomenon of an aging workforce is already apparent today; the aging process will only accelerate. Companies are now forced to learn how to function and to remain innovative with a workforce whose average age is increasing. In addition, they need to find ways to include additional labor pools, in order to withstand international competition.

Many of the European and national programs therefore intend to foster the following: 
that business and society develop a more constructive, realistic picture of the skills and abilities of older people; 
that they deploy and utilize these skills and abilities better; 
that corporate health policy aims to safeguard the work ability of the younger members of the workforce in the long term; 
and that the productive collaboration of younger and older workers develops into a factor driving corporate success. 

The European Commission's framework directive on equal treatment in employment and occupation, which aims to combat discrimination on grounds of religion or belief, disability, age, or sexual orientation, supports such goals. We will soon be able to judge how effective the programs and directive will be when implemented by the member states. 

Bio:
Prof. Dr. Karl Kuhn has been employed with the German Federal Institute of Occupational Health and Safety (BAuA) in Dortmund, Germany since 1981. He is currently the Chief Scientist and the facilitator of "30, 40, 50 plus-Älterwerden in Beschäftigung", an initiative that deals with the experiences and challenges of aging in the workforce. His training relates to health promotion in the work place, specifically dealing with labor organization formation; older workers; and, health coverage in industrialized democracies. In addition to his work with BAuA, Prof. Dr. Kuhn has worked on a variety of projects on behalf of the European Commission and member states.