link: http://www.economist.com/news/finance-and-economics/21570752-growth-will-suffer-workers-dwindle-working-age-shift
In addition to combating its current economic problems, Europe may have to look forward to dealing with future economic problems as well. In 2013, data shows that the working-age population (20-64) in the EU will fall and is predicted to continue to fall for the next 50 years.In addition, the old-population will increase significantly which will reduce the labor force participation in the economy and dent growth. It is predicted that employment and labor productivity may rise until 2020, and from then on, it will start to fall. Europe will face a similar demographic problem as Japan does. As we have seen with Japan's lost decade(s), Europe's may not recover any time soon.
1 comment:
I think it is interesting that the working-age population in Europe is shirking while it is the opposite in the United States and there are more senior citizens working. I wonder how much of that is purely economics and how much is the result of differences in culture.
Post a Comment