The document discusses the aging population trends in Europe. It notes that by 2025 over 20% of Europeans will be over 65 years old, with rapid growth in those over 80. Several European countries like Italy and Japan are more severely affected by aging populations, with issues like declining birth rates and increased life expectancies contributing to these trends. An aging population puts pressure on healthcare systems and pensions, and reduces the ratio of workers supporting retirees. The document discusses some options for governments to address aging populations, such as immigration, increasing retirement ages, and incentives for higher birth rates.

1. Aging workforce of Europe
facts, key issues & solutions
 By
 A.T

2. What is aging of
population ?
When the median age of the
country’s population rises due to
increasing life expectancy and
declining fertility rates than the
population is said to be aging

3.  India
 China
 Pakistan
 Bangladesh
 Indonesia
 Nigeria
 Brazil
 Middle east
 Africa
Top countries and regions with the
youngest population by 2025
More developing countries have aging
Population, rapidly developing
countries have much younger
population with the median age of 25.4
By 2025, India is set to become the
world’s youngest country with 65% of
its population In the working age
group

4. By 2025 more than 20%
Europeans will be 65 or over,
with a particularly rapid increase
in number of over-80’s
European
Commission’s
estimation

5. Aging of population is a
global issue being
witnessed not only in UK
but in such developed
countries as Spain, Italy,
Germany and Japan.
The Italian population is falling
despite the arrival of around 70,000
immigrants every year. Italy also has
an unemployment rate of around 10%.
Italy also has a fertility rate of 1.2
children per woman, one of the
Lowest in the world.

6. The demographic time
bomb
Some countries are much more
affected than the others. The outlook
looks bleak for Italy and Japan, but
not too bad for UK and Denmark
There are currently 4 people of
working age supporting each
pensioner in UK, By 2050 this
number is expected to fall to Just 2.In 2007, for the first time in history
UK’s over-65s outnumbered people
Under the age of 16.

7. Demographic time bomb
 There will also be decline in
young dependents, therefore
the Government will need to
spend less on childcare and
education
 Female labour market
participation rates have
dramatically increased,
increasing the number of
effective workers, however
this has been offset to some
extent by declining male
participation rates

8. What are the main causes
Rinsing longevity
 People are living longer thanks
to improvements in health,
diet and preventative health
care.
Lower/declining birth rates
 Over the last 40 years women
have been having fewer
children in Europe, however in
the last decades birth rates
have risen slightly but this is
due to higher birth rates
among other ethnic groups in
Europe rather than native
Europeans.

9. Problems associated with aging
society
 Gaps in the job market
 Pressure on health care
and social services
 Personal savings
 Increase in dependency
ratio
 Increased Government
spending on health care
and pensions
 Changing sectors within
the economy
 Higher payable tax
 Shortage of workers
 Major shift in
Demographics
 Increased working
hours/decreased
productivity

10. Forecast for dependency ratio in
different countries

11.  Immigration of skilled labour to gain access to wider pool of
talent around the globe
 To increase the average male and female retirement age to
reflect longer lifespans
 To offer incentives and tax breaks to young couples especially to
women to encourage them to have more babies
 Higher tax rates to pay for an aging population however this will
reduce productivity and demotivate people in working age
group
 Cut spending
 Relocation of businesses to the countries with wealth of human
capital
What choices do the European
Governments have

12. Comparison
Benefits of aging population
 The rise in Volunteerism
 More vibrant economy
 Reduced crime rate
 A more cohesive society
 Availability of social support
 New business opportunities
Problems of younger
population
 Youth unemployment
 Homelessness due to varied
reason
 Increased crime rate
 High education, health care &
childcare costs
 More land needed to build
houses