Older Workers: Central Bank Urges Continued Employment
Here’s a breakdown of the key facts from the provided text:
The Problem: Demographic Shifts in Europe (and Ireland)
* Aging Populations: Western Europe is facing falling birth rates, aging populations, and shrinking workforces.
* Eurozone Workforce Decline: The eurozone is projected to lose 1.5 million workers between 2024 and 2027.
* Increasing Dependency Ratio: The old-age dependency ratio (people 65+ compared to those 15-64) is expected to rise substantially – from 33.7% in 2022 to 51.2% in 2050.
* Ireland’s Future: While currently aging slower than other European countries, Ireland’s fertility rate is falling (down to 1.5 in 2023) and is expected to converge with the EU average. From the mid-2030s, Ireland will have one of the fastest aging populations in Europe.
* Economic impact: the Central Bank boss believes Ireland’s long-term economic growth rate will slow to below half of what it has been over the last 50 years by 2050.
The Proposed Solution:
* Increase Workforce Participation: The key to mitigating these issues is to boost labor force participation, specifically by encouraging people aged 60-64 to remain in the workforce and by increasing participation from those over 65.
* Shift Perceptions: Changing how we view the “working-age” population is necessary to address the demographic challenges.
Who is saying this?
* Gabriel Makhlouf, the Governor of the Central Bank of Ireland, made these statements in a speech at the OECD in paris.