1. 1 Employment in the European Union: Perspectives and threats Labour markets, Ageing labour force, migration International Conference “Days of Socio-Economy: Education, Employment, Europe” Crakow, September 21, 2006 Constantinos Fotakis DG Employment and Social Affairs European Commission

2. The socioeconomic context Intense competition in the context of globalisation Intense competition in the context of globalisation Fast technological change Fast technological change Rapid EU population ageing Rapid EU population ageingRapid EU population ageingRapid EU population ageing Poor EU performance in Employment Poor EU performance in Employment Poor EU performance in Employment Poor EU performance in Employment

3. 3 0.00.51.01.52.02.53.03.5 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 1950 1945 1940 1935 1930 1925 1920 1915 1910 1905 1900 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Females Males Population (millions) Source: EUROSTAT Age Year of Birth 3.00.51.01.52.02.53.5 2000 Age pyramid of the EU population

4. 4 0.00.51.01.52.02.53.03.5 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Population (millions) Source: EUROSTAT Age 3.00.51.01.52.02.53.5 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 1950 1945 1940 1935 1930 Year of Birth Females Males 2030 Age pyramid of the EU population

5. 5 Potential of employment growth at EU level

6. 6 Demographic trends Fertility rates in the EU are far below population replacement level: 1.5 Life expectancy is growing in most Member-States: +8 years on average since 1960 Net migration is increased: around 1,5 million per year over the last 5 years

7. 7 Employment rate per educational attainment age group 25-64 in 2005

8. 8 Unemployment per educational attainment age group 25-64, 2005

9. 9

10. 10 Average annual growth of employment per educational level Period 2000-2005 Age-group 15-64

11. 11 While, there are relatively large reserves of lower educated unemployed, there are few reserves of those at tertiary level. The valorisation of human resources - and particularly the young - becomes a strategic issue particularly as regards the policies related to education and the access to the labour market The employment strategy also takes account of the spectacular progress in female education and participation in the labour market. It pays due attention to this new reality by encouraging female employment, equal opportunities and the reconciliation between work and family life. The Member-States -particularly the new ones- can count on the support of the European Structural Funds over the next programming period. The employment of the young

12. 12 Annual rate of growth of population aged 65+ and 15-65, EU25, period 2000-2040 -0.5 0.0 0.5 1.0 1.5 2.0 20002010202020302040 65+ 15-64 Source: Eurostat

13. 13 Promoting active ageing Improving quality in work Promoting Anti-discrimination policies Investing in training and life long learning Reforming tax and benefits schemes Rationalizing retirement schemes and pensions

14. 14 Net migration: Main countries of destination

15. 15 Migration: The role of the EU Economic Migration: Policy Plan on Legal Migration (2005) Integration of Immigrants: Framework for the Integration of third country nationals (2005) Illegal migration and return: Proposal for Directive (2005) Migration and development: Readmission agreements with the countries of origin Some recent initiatives

16. 16 In conclusion Europe faces a double challenge: On the one hand, our population is ageing fast and on the other hand, Europe doesn't have enough people currently in work. Any growth strategy is conditional to a successful strategy of human resources development and employment growth.

17. 17 In conclusion If the EU is to reap the benefits of the global economy, it must be at the front end of ICT and innovation. To reach this level, we need the right skills, in the right place, at the right time. In the future, education in the EU will have to be better matched to the needs of the labour market. And if we are to make a real difference, we need to significantly raise the uptake of science and technology.

18. 18 Conclusion It is up to the Member States to make best use of Community policies and Funding possibilities in order to pave the way for more economic growth and more and better jobs. The Commission will have the important responsibility to provide strong support and keep national strategies, plans and programmes on the Lisbon track.

19. 19 http://europa.eu.int/comm/employment_social/index_en.html Web address: Thank you!