Population ageing and its economic challenge for European countries

Jana Langhamrova, University of Economics, Prague (VSE)
Kornélia Cséfalvaiová, University of Economics, Prague (VSE)
Jitka Langhamrova, University of Economics, Prague (VSE)

It seems almost conventional that Europe is facing the process of population ageing. This demographic progress means serious consequences and challenges for the European economy, healthcare and national policies. Issues connected to population ageing are indicated by two mutually reinforcing trends - the declining fertility rates and the increasing life expectancy at birth. At present, the populations of economically developed societies live much longer than before, and as the life expectancy is increasing steadily, healthy life expectancy is increasing at the same time. The reasons are partly connected with the progress of health care systems and the development of social and cultural environment. The aim of this paper is to analyze the process of population ageing and its economic consequences in selected European countries. Furthermore, it deals with the efficient utilization of the workforce of older people in the labour market. In this connection, it is important to note that the increasing proportion of older people in the society, does not necessarily mean a crisis situation. The possibility of their activity postponing should be used to promote sustainable development and to ensure the future. Seniors as active workers in the labour market means not only the main reduction in pension liability, but in parallel compensates the decrease of manpower of younger people and for a certain period of time it creates resources for pension systems.