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CHAPTER 1
Setting the scene: promoting an inclusive labour market for ageing workers 11

1.2.1. Ageing, older workers and employment in the EU
The most significant challenge for Europe in the coming years will be to
combat the global economic crisis and consequently to introduce measures
to reduce unemployment as well to increase productivity, economic growth
and social inclusion in Member States. The Council conclusions on active
ageing (Council of the EU, 2010a) highlight the fact that future competitiveness
and prosperity of Europe relies largely on its capability to put its labour
resources to active use. This includes extension of employment periods over
lifetimes and adoption of necessary policy action to support better work-and-
life balance. Addressing skill needs of older workers through more and better
education and training, promoting active ageing, creating more inclusive
labour markets as well as tackling labour market segmentation and
segregation are fundamental challenges for our societies.
In particular, as Europeans tend to live longer, older workers should be
encouraged to remain longer in the labour market. Job quality and job
satisfaction are key factors for sustainability of work and retaining older
workers in the labour market (European Commission, 2007b). However, the
economic crisis of 2008 has radically challenged economic conditions for both
young and older citizens, and many have experienced unemployment and
unexpected job and career transitions. The crisis also drastically reduced
opportunities for entering the labour market. Some were forced to return to
education and training for additional learning and skills upgrading.
Also due to the crisis, the EU failed to reach the target of 70% participation
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rates of the working age population in employment by 2010 ( ) (European
Commission, 2011b). For 2020, the EU has set an even more ambitious goal:
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an employment rate of 75% ( ) (European Commission, 2011a). For older
workers (55 to 64 years) the target employment rate is 50%. By 2010, this
goal was not reached by EU-27, although Member States managed to
increase the employment rate of older workers to 46.3% in 2010 (compared
to 36.9% in 2000) (Eurostat, 2011). The above employment targets can be
met only by creating new jobs, increasing labour participation (engaging
women, young and older workers to a much greater degree than currently),
launching structural reforms and fostering lifelong learning.

( ) In 2010, the employment rate of workers aged 20 to 64 stood at 68.8%.
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( ) It is one of the five key elements of the EUʼs growth and jobs strategy, Europe 2020.