The impact of demographic change in Europe (2024)

The power of demography

Demography tells the story of our lives. It is about how old we are likely to become, how many children we can expect to have, and where and how we are likely to spend our lives. Demographic change has a powerful impact on our economies, on our welfare and health systems as well as on housing and infrastructure needs in Europe's regions. This in turn has implications for government budgets and policies. The EU integrates demographic concerns into the development of relevant EU policies and we have taken a number of specific initiatives at EU level which support Member States in dealing with demographic change.

Read the report: The impact of demographic change in a changing environment

Demographic change in the EU has an impact on

• the labour market- as Europe’sworking-age population is shrinkingsustaining economic growth requires us to bringmore people into the labour market and/or to increase productivity through technological advances and skills development
• employment- as people live longer and healthier lives, many citizens want to work longer, although not necessarily in the same kind of jobs.
• care services- the growing share of older people in the EU brings an increased need for care services and challenges the long-term financial sustainability of our welfare states
• demographic balance - demographic trends do not affect every country and every region in the same way. Whereas a number of EU Member States are projected to experience a decline in their population already in the next years, others are projected to see population growth over the same period
• rural areas- generally speaking, rural regions are more affected by population decline due to natural changes and outmigration than predominantly urban ones
• Europe’s position in the world- as the EU’s share of the global population is projected to continue falling in the coming decades, the need for close cooperation at all levels to ensure the competitiveness of our Single Market becomes ever more pressing

See more demographic statistics for individual EU countries

Given the scale, speed and impact this trend will have across society, it is important to consider new approaches and ensure that policies are fit for purpose in an era of major change – from the green and digital transitions to new forms of work and addressing the key health challenges, including pandemics.

Competences for dealing with the effects of ageing are largely in the hands of Member States and the EU is well placed to identify key issues and trends and support action on ageing at national, regional, and local level. It can help Member States and regions develop their own, tailor-made policy responses to ageing.

Green paper on ageing

The European Commission published the green paper on ageing in January 2021 launching a broad policy debate on ageing to discuss options on how to anticipate and respond to the challenges and opportunities that ageing brings as well as how to help keep a good life quality of the ageing population as long as possible. Contributions to the public consultation on the green paper helped identify the measures needed to support to promote economic and social resilience in an ageing Europe.

Europe is undergoing a major demographic transformation. Demographic change has a profound impact on everyday life and requires holistic and integrated solutions.

Since our citizens are living longer and healthier lives, all our policies need to be forward-looking and support the shift from an ageing to a longevity society.

The June 2023 European Council conclusions called on the Commission to put forward a toolbox to support Member States in addressing demographic challenges and their impact on Europe’s competitive edge.

The demography toolbox, prepared in response by the Commission, draws on experiences from across the EU and sets out a comprehensive approach to demographic change structured around four pillars:

1. support parents by better reconciling family aspirations and paid work, notably by ensuring access to quality childcare and good work-life balance;
2. supporting and empowering younger generations to thrive, develop their skills, facilitate their access to the labour market and to affordable housing;
3. empowering older generations and sustaining their welfare, through reforms combined with appropriate labour market and workplace policies;
4. where necessary, addressing labour shortages through managed legal migration, in full complementarity to harnessing talents from within the EU.

The toolbox recognises the need to take on board the territorial dimension of demographic shifts, specifically in regions that experience the phenomenon of population decline and a significant outward mobility of young workers (‘brain drain’).

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