EU report: Supporting older workers now an economic necessity

As Europe faces a rapidly ageing population and a rising old-age dependency ratio projected to reach 52% by 2050, retaining older workers in the labour force is no longer just a social issue but an economic imperative, according to new research from Eurofound, the EU agency for social and employment affairs.

The report, Keeping older workers in the labour force, highlights that while employment rates among workers aged 55 and over have improved significantly—rising by nearly 20 percentage points between 2010 and 2023—older workers continue to face a greater risk of long-term unemployment. The rate for this group is still 13.5 percentage points higher than for mid-career workers.

Demographic changes are reshaping Europe’s labour market. Since 2014, the continent has seen a natural population decline, offset only by net migration. By 2023, there were nearly 40 million workers aged 55 and older across the EU. Despite their growing presence in the workforce, the report reveals that ageism and discrimination remain persistent barriers in many workplaces.

The quality of employment for older workers tends to be higher overall, potentially due to the “healthy worker effect”—where employees in poorer-quality jobs retire earlier. However, gender disparities persist, with older women experiencing lower job quality than their male counterparts.

The report delves into job quality variations across age groups, as well as within the cohort of older workers. It also investigates the factors driving employment trends and evaluates national policies and workplace practices aimed at supporting the retention of older employees.

A key finding is the unequal distribution of job quality. Around one-third of older workers are in “empowered” roles that offer good working conditions, but one in five are employed in “high-risk” jobs marked by poor mental health outcomes, financial stress, and work-life imbalance.

Eurofound’s report outlines several policy recommendations to improve conditions and boost participation among older workers. These include incentives for later retirement, combating age discrimination, and introducing more flexible retirement options. The recommendations also extend beyond employment, calling for improved access to healthcare and support services, especially as many older workers retire early to care for others.

With Europe’s demographic challenges deepening, the report underscores the urgency of integrating older workers more fully into the labour market—not only as a matter of fairness but as an essential component of economic resilience.

Source: Eurofound