Ageing and its determinants: potentialities and challenges for employment in Southern Europe

The ageing process, mainly due to a persistent low fertility, has a strong impact on the labour market. The shrinking labour force and the increase of dependent old-age population will become particularly intense in the next two decades especially in Southern European countries. The aim of this paper is twofold. On one hand, it highlights the population dynamics in the Southern European context and what is reasonable to expect in the next decades. On the other hand, it attempts to contribute to a better understanding of how demographic changes and labour market dynamics are mutually interrelated. Alongside factors of concern, the paper also discusses elements of optimism for the future. Mature workers and the elderly are changing their characteristics rapidly and in the coming decades they will have higher levels of education and better health conditions, with a positive impact on their wellbeing and work productivity.