Free Movement of Workers and Labour Market Adjustment

Recent Experiences from OECD Countries and the European Union

image of Free Movement of Workers and Labour Market Adjustment

This publication presents recent evidence and analytical work on the impact and future perpectives of demographic trends in the workforce, taking also into account education, skills and geographical mobility. It pays particular attention to the labour mobility patterns generated by the development of free mobility in Europe and simlar developments in other parts of the world.



Exploring conditions for EU growth given a shrinking workforce

The decline in the working-age population in Europe will place its welfare system under strain unless it can maintain the growth of the pre-crisis decade (1999-2008). Increases in labour force participation rates and increases in productivity are both necessary. This chapter looks at some of the impacts of different labour-supply development scenarios on Europe’s economic growth paths and the productivity yields necessary to achieve those scenarios, in line with the Europe 2020 commitments. Potential contributors to better employment performance are examined, including regional development, mobility and migration policies, and progress in education. Single policy strands – such as activation measures, more open migration and structural policy – will not be sufficient to meet growth objectives, and a longer time horizon is necessary as new challenges will arise beyond 2020.


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