Demographic change is a very long term process and there seems to be no possibility of a prompt reversal of negative trends. The influence of demographic factors on growth has been confirmed by Bloom, Canning and Moore (2004). Most importantly, since decisions to participate in the labour market are affected by age, Bloom, Canning and Moore found that ‘older’ societies had smaller labour supply which, in turn, led to lower potential growth. Furthermore, the same study demonstrated a peak of aggregate savings in cohorts aged 40 to 70. Therefore, an older population will be less willing to save and more to consume. (Fabisiak,Prokurat, 2012)
The problem faced by European societies due to the growing proportion of an ageing, dependent population, resulting from declining fertility rates and rising life expectancy, combined with the related shrinking of the workforce, is already well-established and has been a known phenomenon for years now (European Commission 2004; SPC 2015a). This important demographic trend has significant economic and social consequences. The increased percentage of an older dependent inactive population generates strong pressure on social protection resources, as rising expenditure (health-care, long-term care, pensions etc.) must be financed through the contributions and taxes paid by a shrinking younger workforce In the EU the pressure is even higher: countries’ short and long-term expenditure is now constrained by the lasting budgetary limitations imposed by the EU economic governance framework in the context of the European Monetary Union (EMU) and the persisting consequences of the economic crises faced by Europe since 2007. Social protection is caught between the wish to maintain/improve the adequacy of provisions and the need to preserve the long-term sustainability of social systems. This is a common challenge faced by all EU countries, although to differing degrees according to their national circumstances. (PAWEU Report, 2016)
Interesting compared data, referring to Poland, Chech Republic and Slovakia, explain the specific situation in selected countries:
„In light of a steady increase in the older population, emigration of young people, and declining fertility rates, concerns about the increasing economic burden brought about national efforts to focus on issues of employment policies and retirement-income systems. The population of older adults (65 years old and older) in the Czech Republic in 2014 represented 17.4% of the population, 13.5% in Slovakia, and 14.7% in Poland (Eurostat, 2015a). While the percentage of older adults in the total population is projected to increase in some European countries during the period between 2014 and 2080 by the average of 10% points, some countries will experience a more rapid increase in the share of the older adults population. For example, the fraction of the population of Slovakia aged 65 and older will increase by 22% by 2080. Over the same period, Slovakia will experience a significant decrease in the total number of inhabitants of around 30 % (Eurostat, 2015b). (…)
Older workers are a significant and growing part of the workforce. The Czech Republic, Poland, and Slovakia have witnessed changes in their labor market in recent decades. In Poland, the rate of employment among individuals 55-59 has grown significantly from 37.7% in 2004 to 45.8% in 2010, yet it was the lowest in Europe. The Czech Republic experienced even higher increase, from 59.1% in 2004 to 76.9% in 2014. The highest increase inlabor force participation of individuals aged 55-59 was observed in Slovakia, where the rate increased from 34.5% in 2004 to 57.9% in 2014 (Národný Program Aktívneho Starnutia na roku 2014–2020; OECD, 2014). Despite a strong increase in each of the above-mentioned countries, the participation in labor was still low. In comparison with other European countries, in 2010 over 80% of Swedish and 75.9% of Danish population of individuals aged 55-59 were employed. The average employment rate across all Organization for Economic Cooperation and Development (OECD) countries was equal to 67%. (Eurostat, 2015b).”(Leszko, Bugajska, 2017)