The EU Commission called on member states to adapt all their policies to the longer life expectancies of citizens, but it did not make any concrete proposals and shied away from tackling controversial topics such as an increase in retirement ages.

Read the original story in German here.

With millions of workers born during the ‘baby boomer’ years of the 1950s and 1960s set to retire soon, European countries are set to struggle to replace well-trained staff when they are already battling labour shortages in both skilled and unskilled sectors.

“The trends are evident: falling birth rates, rapid ageing, the shrinking working-age population, skills shortages,” European Commission Vice-President Dubravka Šuica she Euractiv.

All this is leading to a “huge gap in the labour market”, which is increasing strain on companies and public budgets as the number of pensioners grows while pensions and social contributions shrink.

Some regions, particularly rural areas, are also experiencing a strong exodus of young people, posing additional challenges. In the worst case, this could lead to “people feeling left behind and abandoned”.

“They don’t trust anymore in democratic institutions, and they start voting different voting patterns, which means voting populists,” warns Šuica.

On Wednesday (11 October), she presented a list of possible countermeasures. The main issue was to “use existing human capital in the best possible way”, Šuica said.

For example, women’s access to the labour market should be facilitated by offering them better childcare facilities.

“Eight million women are out of the labour market. So this is human potential I’m talking about”. If women cannot work because they have to look after their children or parents, this is “unacceptable”, the Commission vice-president said.

However, the Commission could not give concrete guidelines to the member states because “it’s up to member states, regions and cities”.

Sensitive topic of retirement age

She added that another piece of the puzzle is getting older workers to stay in employment out of choice.

“We live much longer than we used to,” Šuica said, pointing to rising life expectancy as a major social advantage, adding, “We think that there is a huge potential in older persons.”

“There are many people who would like to continue working, but it’s impossible because we are not flexible,” the Commissioner added.

However, the Commission shied away from more controversial proposals, such as increasing the general retirement age, not least for fear of a backlash.

“We don’t want the ‘Gilets Jaunes’ in all European countries,” Šuica said, nodding to  France, where an increase in the retirement age from 62 to 64 has sparked nationwide protests.

In its report, the European Commission only lists measures that EU countries are already taking in response to the problem – and otherwise remains largely vague.

According to the Commission vice-president, EU countries could ultimately “choose what fits best” from the measures presented.

Do not mix illegal and legal migration

Immigration also plays an important role, said Šuica, but stressed: “When I say migration, I mean legal migrants”.

There should be no mixing of refugees and asylum seekers with labour market immigration, she added. “I wouldn’t propose that we make illegal legal,” she said, rejecting proposals to facilitate access to the labour market for rejected asylum seekers.

“Those who are illegal should be returned,” she said, referring to the negotiations on the New Pact on Migration and Asylum, which such proposals should not complicate.

While the Commission would like to see more qualified workers coming to Europe, it is also aware of the fears that this could create a “brain drain” in the countries of origin, as it has recently caused conflicts in Albania, where the government is trying to stop doctors and nurses from leaving for countries like Germany.

However, skilled foreigners could return to their home country after a while and improve the situation there, the Commissioner said, stating that “we don’t want to create brain drain” but “it’s brain gain, it’s brain circulation, it’s brain cross-fertilisation”.

(Edited by Oliver Noyan/János Allenbach-Ammann /Alice Taylor)

Source: Euractiv.com