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Working and ageing - Cedefop - Europa

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CHAPTER 1<br />

Setting the scene: promoting an inclusive labour market for <strong>ageing</strong> workers 11<br />

1.2.1. Ageing, older workers <strong>and</strong> employment in the EU<br />

The most significant challenge for Europe in the coming years will be to<br />

combat the global economic crisis <strong>and</strong> consequently to introduce measures<br />

to reduce unemployment as well to increase productivity, economic growth<br />

<strong>and</strong> social inclusion in Member States. The Council conclusions on active<br />

<strong>ageing</strong> (Council of the EU, 2010a) highlight the fact that future competitiveness<br />

<strong>and</strong> prosperity of Europe relies largely on its capability to put its labour<br />

resources to active use. This includes extension of employment periods over<br />

lifetimes <strong>and</strong> adoption of necessary policy action to support better work-<strong>and</strong>life<br />

balance. Addressing skill needs of older workers through more <strong>and</strong> better<br />

education <strong>and</strong> training, promoting active <strong>ageing</strong>, creating more inclusive<br />

labour markets as well as tackling labour market segmentation <strong>and</strong><br />

segregation are fundamental challenges for our societies.<br />

In particular, as Europeans tend to live longer, older workers should be<br />

encouraged to remain longer in the labour market. Job quality <strong>and</strong> job<br />

satisfaction are key factors for sustainability of work <strong>and</strong> retaining older<br />

workers in the labour market (European Commission, 2007b). However, the<br />

economic crisis of 2008 has radically challenged economic conditions for both<br />

young <strong>and</strong> older citizens, <strong>and</strong> many have experienced unemployment <strong>and</strong><br />

unexpected job <strong>and</strong> career transitions. The crisis also drastically reduced<br />

opportunities for entering the labour market. Some were forced to return to<br />

education <strong>and</strong> training for additional learning <strong>and</strong> skills upgrading.<br />

Also due to the crisis, the EU failed to reach the target of 70% participation<br />

rates of the working age population in employment by 2010 ( 2 ) (European<br />

Commission, 2011b). For 2020, the EU has set an even more ambitious goal:<br />

an employment rate of 75% ( 3 ) (European Commission, 2011a). For older<br />

workers (55 to 64 years) the target employment rate is 50%. By 2010, this<br />

goal was not reached by EU-27, although Member States managed to<br />

increase the employment rate of older workers to 46.3% in 2010 (compared<br />

to 36.9% in 2000) (Eurostat, 2011). The above employment targets can be<br />

met only by creating new jobs, increasing labour participation (engaging<br />

women, young <strong>and</strong> older workers to a much greater degree than currently),<br />

launching structural reforms <strong>and</strong> fostering lifelong learning.<br />

( 2 ) In 2010, the employment rate of workers aged 20 to 64 stood at 68.8%.<br />

( 3 ) It is one of the five key elements of the EUʼs growth <strong>and</strong> jobs strategy, Europe 2020.

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