Population Change in Europe Slow Growth… Fast Growth… NO Growth!

Overview – The United States Before 1750: Stage 1 (slow growth) Plagues, famines, wars 1750s  1900: Stage 2 (rapid growth) Better sanitation, health care, food supplies 1900  2000: Stage 3 (slow growth) Urbanization 2000  Present: Stage 4 (no/negative growth)

Negative growth presents three significant problems: Shrinking Population Aging Population Declining Workforce France’s fertility rate has been rising since the 1990s but is still below the replacement rate!

Problem1: Shrinking Population Causes Women – want education, jobs, wait until older to have kids, contraception widespread $ - high cost of living usually requires 2 incomes Childcare – if both parents work Results Job loss (short term) – for people who work with children or in child-related industries Labor shortages (long term) Smaller military (long term)  decline in power/influence

Italy’s Population Pyramids

Solutions to Shrinking Population Cash & Benefits Incentives for larger families Government assistance for daycare Family-Friendly Policies for Parents Paid leave from work Flexible work hours/right to work part-time

Problem 2: Aging Population Causes Life expectancy ↑ Birth Rate ↓ Baby Boom after WWII Results Pensions Health Care Most European governments provide these using tax revenues

Solutions to an Aging Population Pensions Cut pensions – unfair Raise retirement age Offer bonus to delay retirement Health Care Prevention vs. treatment Home care vs. nursing homes Incentives to care for elderly relatives at home

Problem 3: Declining Workforce Causes Retirees > new workers Results Shortage of skilled workers Businesses may leave or close Economy may ↓ Less tax revenue

Solutions to a Declining Workforce Keep older workers working longer Encourage more women to work through family-friendly policies Look for workers outside of Europe Encourage immigration – may create more problems than it solves