Across Europe, birth rates are falling and family sizes are shrinking. The total fertility rate is now less than two children per woman in every member nation in the European Union (see Figure 1). As a result, European populations are either growing very slowly or beginning to decrease.
At the same time, low fertility is accelerating the ageing of European populations. As a region, Europe in 2000 had the highest percentage of people age 65 or older — 15 percent. According to data from the U.S. Bureau of the Census, this percentage is expected to nearly double by 2050.[1]
These demographic trends portend difficult times ahead for European economies. For example, a shrinking workforce can reduce productivity. At the same time, the growing proportion of elderly individuals threatens the solvency of pension and social insurance systems. As household sizes decrease, the ability to care for the elderly diminishes. Meanwhile, elderly people face growing health care needs and costs. Taken together, these developments could pose significant barriers to achieving the European Union (EU) goals of full employment, economic growth, and social cohesion.
Concern […]