The Fourth Demography Forum

6 and 7 May 2013 (Brussels)

 Employment, Social Affairs & Inclusion
The Fourth Demography Forum

Table of Contents

Introduction ...................................................................................................... 3
Opportunities for young adults ............................................................................ 4
Improving the work-life balance .......................................................................... 5
Enabling people to be active longer ...................................................................... 6
Successful inclusion of second-generation migrants ............................................... 7
Regions in rapid demographic and economic decline and inequalities within regions ... 8
Investing in Europe's demographic future - how the SIP will support the drive towards
extending Europe's demographic dividend ............................................................ 9
Conclusions .....................................................................................................10

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Some 320 participants attended the Forum opened by Commissioner Andor.

This report was drafted by the Forum organisers on the basis of the delivered
speeches. Any possible errors or omissions are to be imputed to the Forum
organisers

Introduction
In his welcoming speech, Commissioner Andor underlined our duty to prepare
a longer-term future for ourselves and our children while being conscious of
the need to urgently tackle the short-term problems caused by the crisis. He
highlighted a dilemma whereby cutting jobs to reduce costs and debt was also
reducing revenue and increasing social welfare expenditure. Facing ageing
meant creating an environment where growing old did not necessarily mean
becoming dependent on others. For todays young, it was necessary to bring
education and training more closely into line with the skills needed on the
labour market and to take advantage of free movement on the EU labour
market to match jobs and skills more effectively. Overall, within existing
budget constraints, the Member States need to shift their focus to investing in
human capital, supporting job creation and social cohesion. Francesco Billari
cast the policy debate into the observed long term trends of higher education
levels, especially for women, postponement of access to and exit from labour
market, family-forming and child birth, and the increasingly positive link
between well-being and fertility. Monika Queisser underlined womens
potential in sustaining labour supply and the role of the market place and
public authorities; to remove barriers to women's participation in the labour
market, a whole array of policies should be enacted, in the areas of work-life
reconciliation policies, removing disincentives in tax and benefit systems,
education and labour market, entrepreneurship, gender equality. Marc Frequin
warned against localised initiatives to attract young adults that tend to create
an expensive service excess supply; at local level, there was a need for more
adaptability in measures to develop physical (e.g., multi-functional buildings
that can be reconverted) and human capital to adapt to changing needs; there
were also opportunities to make of the challenge a virtue, as for instance in
converting abandoned areas to energy regions within a necessary strategic
de-investment.

At the dinner speech, Speder Zsolt, director of the Demographic Research

Institute at the Hungarian Statistical Office, underlined the deep long-term
societal transitions, in particular in the EU12, that risk resulting in rapid
ageing.

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Opportunities for young adults

Tomas Sobotka warned that the trend towards delayed childbearing had
accelerated. In particular, rapid rise in labour market uncertainty and
unstable job conditions appear to have a negative effect on fertility rates
and fuel an increase in uncertainty about future childbearing plans. Among the
policy targets he advocated pursuing

Making labour market more adapted to attract more young adults, migrants,
women, as well as the elderly into labour force. At present, the major threat to
European welfare system is not population aging as such, but the inability of labour
markets to tap the unused labour market potential of many underemployed
people.
Reducing income inequalities, which have been on the rise in most countries in
Europe. As more people live on the margins, without decent income, education,
and employment, the reproduction of social disadvantage threatens future human
capital more than the observed low birth rates in many parts of Europe.
Reducing elderly bias in social spending. Recently, Vanhuysse (2013) has shown
that social spending in many countries of Europe is strongly biased towards the
elderly, which risked undermining intergenerational justice and makes young adults
well-being more dependent on the willingness of their families to support them. The
elderly welfare spending bias also implies that government cuts in social spending
in times of austerity fall more heavily on younger generations and, consequently,
may impinge negatively on family formation.
Supporting family formation and homecare for children among those temporary out
of employment. People out of employment often lack resources considered
necessary to start a family. For instance, parental leave benefits are often tied to
previous employment. One way how to support people who are temporarily out of
employment in their decision to have a child, is to establish a system of temporary
home-care allowances, housing subsidies and special loans for parents with small
children.
Pavel Trantina outlined very clearly the economics behind the youth
guarantee as its advantages would not be limited to help young adults a
strong reason in itself -, rather it makes strong economic sense from an
investment viewpoint. There were some 14 million young NEETs in the EU-27;
these cost in excess of 150 billion per year; according to ILO estimates, the
guarantee would cost some 21 billion for the next few years and the youth
guarantee fund itself was endowed with 6 billion per year in the current EU
multi-annual financial framework.

The NEET, that is young people not in employment, education or training, cost
varied widely across Member States; and lower cost were associated with
Member States that had invested early in young people. Investments had to
be planned at national level but following common EU principles.

In Finland, as Matti Mkel explained, there was much satisfaction with their
training guarantee model. Since 2011 it offers those who completed
comprehensive school (to age 16) a placement in education/training,
apprenticeship, youth work or other suitable position; since 2013, it offers

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those who completed secondary education work, training , education or

another place serving their needs within three months from the start of
unemployment.

Moreover, the guarantee helps ensure obligatory school completion. In

addition, education goals were pursued via an array of measures, including by
introducing a three-level special education support program based on
individual need and flexible learning paths in basic education, cooperating
with families, providing adequate information about further education.

Improving the work-life balance

Anne Gauthier identified two major objectives in this area, namely allowing
more mothers to participate in the labour market; and improve the work-
life balance of mothers and fathers. Towards the first objective, policy
measures are needed to address mothers who are temporarily outside the
labour market because of child duties, as well as those who are unemployed or
inactive because they have withdrawn from the labour market.

Policies that fostered education opportunities for both sexes; work

opportunities in family-friendly workplaces; maternity and balanced parental
leave for both parents; quality, convenient, and affordable childcare combined
with social support were identified as the most effective.

Some rebalancing between paid and unpaid work was necessary to allow
improving the work-life balance. Maria Jepsen indicated flexible working
arrangements, accessible quality care services and adequate parental leave
schemes as crucial policy levers. It was also important to consider what kind
of jobs these policies would foster, for instance those available to women who
return from leave. She reported that women in the EU, while faring better
than men in working conditions and working time, are often penalised in terms
of salaries and career opportunities.

According to her, It was important to realise that work-life balance is for both
women and men; that there were issues of consistency between work-life
balance and gender equality, especially on the labour market; that there was a
need for continuity in supporting the access of women to the labour market.
Gender mainstreaming was a crucial policy option that could ensure continuing
support throughout the life course.

Iceland was proud of its world primacy in gender equality, announced Kristin
stgeirsdttir. There were no secret formula, rather a good combination of
friendly policies such as work organisation, including hours, education levels,
leave provisions, child care, promoting an equal share of housework, family
and elderly support and a supportive tax and benefit system. Main changes
occurred between 1960 and 1980, during which women strongly increased

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their role on the labour market; 1960s policies fostered the dual-earner model
above the male-breadwinner and the provision of migrant labour; this was
built around principles of equal pay for equal work and equal opportunities.
From the 1980s women movements fostered further gender equality reforms,
via services aimed to support work/life reconciliation. Although even in
Iceland, gender equality was still far from perfect, the country had moved
much and close towards an equal society. The progress continues and recently
the government had introduced parental leave that encouraged fathers to take
an almost equal time to mothers; this was the current, most important
challenge, shared by other in the panel.

Enabling people to be active longer

Agnieszka Cho-Domiczak underlined that persistent differences in life-long
learning participation across age groups can also lead to increasing inequality
in distribution of human capital, and made it less able to adapt to the labour
markets changing requirements. She observed that, in spite of adult
education becoming more necessary (in view of ageing and faster changing
labour skill requirements), the learning gap between older and younger people
has persisted. While young people tend to compensate for their lack of formal
qualifications with informal skill acquisition, this is less the case for older
workers.

Policies should focus on life-long learning for adults with lower formal
qualifications.

In Italy, Pietro Checcucci told the audience, there had been a slow change
from replacement policies, aiming to replace older workers with large cohorts
of younger ones, towards blocking (limit early retirement) and development
(older workers and managers jointly improve their employability). Their new
2014-2020 strategy aimed at increasing the Italian manpower by 1.5 million
people, as a result of a loss of workers under age 54, compensated by the
influx of immigrant workers and an increase in participation of those aged 55
and over. Older workers were more present in larger enterprises and there
was a need to focus on their participation in life-long learning. The new
strategy also foresaw incentives for hiring older workers, flexible times and
working arrangements, and other active labour market measures.

Productivity does not necessarily decrease with age. Thomas Zwick recalled
early studies that had introduced the notion of productivity decrease with age.
However, while there are still difficulties in estimating productivity, newer
studies, based on longitudinal data, pointed to a sustained and continuing
productivity into older working ages. In Germany, half of the companies had
introduced measures to accommodate for older workers needs, including
reduced working time, training and ensuring that teams have a mix of younger

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and older workers. The first two measures had a limited impact because of the
older workers training preferences (less technical, less formal) and used
reduced working time as a stepping stone towards retirement. On the other
hand, mixed-age work teams appeared to be an effective way of motivating
older workers and keeping their productivity high.

Successful inclusion of second-generation migrants

A first factor that was examined was the specific origin of the migrants. In
Sweden, as Kirk Scott pointed out, this played a role, although across all world
origins the socio-economic status of the family and second-generation
migrants shared the education difficulties of equal-status natives. In general,
however, the second generations have higher chances of reaching an
academic level, rather than limiting themselves to vocational degrees. Once
leaving education, second generation migrants appear to fare as well on the
labour market in Sweden as natives. In consequence, efforts should be
directed towards reducing the disparity in school outcomes.

A major benchmark for immigrant integration is not so much the outcomes of

immigrants themselves but rather those of their children, and in particular
those born and educated in the country where they reside. Education is the
essential area of integration.

Georges Lemaitre pointed to the concentration of children of non-natives in

certain schools. This is crucial, since in Europe low immigrant children
education outcomes have been linked to their high concentration; the
percentage of migrant children, however, only played a role above a certain
threshold. Policies that can be effective, albeit not always politically feasible,
are reducing the extent of social segregation via housing policy, school
vouchers, bussing, (and all this would need to be implemented for early
schooling) and reducing the impact of social segregation by investing more in
disadvantaged schools.

As the first generation of migrant was still largely active and the second still
largely in education there was a need for an integrated cross-generational
approach to social investment. In particular, the south-EU migration model,
with a large share of less-well educated, less-well paid, high-activity migrants,
was showing its limits. Ferruccio Pastore highlighted its low-cost but also low-
benefit nature. It was increasingly characterised by native-immigrant
competition on bad jobs markets; cheap access to immigrant labour was a
disincentive for ever more needed entrepreneurial innovation; and a growing
demand for welfare services.

There was a need to reconvert to a more selective and growth-oriented

immigration model. In particular, a need for targeted, diversity-friendly active
employment policies and for labour market participation of dependent female

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immigrants; supporting integration in schools; reinforcing jus soli;

recognizing the transnational potential in labour markets; improving support
to youth professional mobility of EU citizens; and reforms to facilitate intra-EU
mobility of long-term residents.

Regions in rapid demographic and economic decline

and inequalities within regions
Europe has become the oldest world region and in particular the EU 11, i.e.,
the new EU Member States excluding Malta and Cyprus and including forth-
joining Croatia, are ageing very fast, observed Gallina Andronova Vincelette.
Ageing was expected to hinder growth, investment and innovation. In
addition, EU11 labour participation was lower than the rest of the EU, in
particular among women with lower education levels. It was necessary to both
raise education levels and labour participation, especially among older people
and including by raising retirement ages.

Birgit Garbe-Emden illustrated the plight of rural regions in the European East,
from where many young adults were leaving and few returning. Low
employment, high unemployment and low per-capita GDP were inextricably
linked to regional out-migration. These left a legacy of children and other
dependent persons left behind, scarcity of care support, sparse schools with
combined-aged classes. Responses were to be developed also within
partnerships between immigration and emigration regions in the EU. These
should focus on the infrastructure (such as transport and education), as well
as human capital and labour market measures that were tailored to the local
economy.

In Bulgaria, Zornitsa Roussinova explained, ageing was widening the

development gap, between rich, industrialised, densely populated regions and
the rest, poorer, de-industrialised and sparsely populated. The European
Social Fund could play a major role in redressing the imbalances, but only if it
focussed on the poorer regions and in the context of a wider national strategy
and in an integrated approach with other regional development funds. Its aims
should be to increase labour participation, upgrade skills, ensure an easier
transition from school to active life, and retain older workers.

Regional population decline hit the news when a decision to demolish

excess houses caused national outrage, Marianne Besselink told. There are
major practical challenges, such as ensuring access to continuing services
even when these need to be reduced; or that housing supply reasonably
matches demand. A first step towards acting is awareness and acceptance of a
new shrinking reality. This gives rise to local initiatives that can be supported
and extended. Often these need to start as or become sustainable even
without government support.

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Investing in Europe's demographic future - how the

SIP will support the drive towards extending Europe's
demographic dividend
The demographic perspective is central to the EUs recent policy orientations in
the Social Investment Package, said. We used to think of demography
changes as slow, but Nick Costello warned that we had come to a conjuncture
when changes are actually happening fast. Can we achieve our 2020 targets,
e.g., a 75% employment rate for those aged 20-64, in spite of worsening
demographics and the ageing of the working-age population? But there are
opportunities; we can make better use of new technologies; and we need to
make sure that healthy and independent living is a reality and promotes more
active lives. Investing in early childhood education and care was central to the
new far-sighted approach. It was important to increase the effectiveness and
sustainability of Europes support systems for instance via one-stop-shops;
pursue activating and enabling policies, where support is adequate but limited
in time; tailor the support to the specific need at the various stages of peoples
lives.

John Bohan highlighted the depth and width of the Social Investment Package.
It was important for Member States to have adequate budget tools. The main
challenge now was its implementation, which would consist of on national
reforms, with the help of structural funds, supported by identifying good
practices and support in exploring innovative solutions. Reorienting exiting
programmes could be sufficient in some cases, although there was also a need
for a Social Investment programme. Linking separate programmes is a way to
build synergies. Social innovation played an important role, including ways of
assessing programme benefits. And we should not forget that we can learn
from other Member States.

Minister Beermann recalled the recent history of his region, Saxony, and how
it had managed to face its demographic challenges through sustained
investment focussing on education and training. While in the early 1990s the
region was characterised by low fertility and high out-migration, now Dresden
had become the city in Germany with highest fertility and young adults were
returning to Saxony. Still, the region was paying the consequences of the
difficult adaptation in the 1990s. Rural regions in Germany and elsewhere
were undergoing rapid ageing and population loss; this undermined cohesion
within the Union. There was a need to preserve social services for those in
need and maintain production; young well-educated people should be
encouraged not to leave and policies could be successful. To bring this forward
the Social Investment Package was a suitable framework.

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Conclusions
The many Forum participants joined in the debate and highlighted their
concern for demographic change and its relations to several policy areas,
debating problems and solutions.

Promoting fair and intergenerational societies and ensuring well-being,

autonomy and activity for people of all ages requires a long-term
comprehensive approach. This approach must combine economic, employment
and social measures supported by adequate policies in the fields of the labour
market, lifelong learning, the working environment, health and safety at work
and social protection reform.

The Social Investment Package puts forward a comprehensive strategy to

promote social investment throughout life, and a focus on preventive
measures that enable people to participate actively to the best of their abilities
in society and economy. In view of demographic change, it is essential that
Europe makes the most out of its valuable human capital. As some of the
examples above have shown, by investing wisely on people it is possible to
turn difficult situations around and put our society onto a sustainable path.

In the next years we will get to know how successfully the good policies and
practices highlighted during this Forum will have been adopted and
implemented elsewhere, and if building on demographic awareness we will
have moved closer to the Europe 2020 targets of improving skills, raising
labour participation and reducing poverty.

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