Brussels: The EU's ageing population is reshaping its labor market and placing greater pressure on healthcare and long-term care systems, the European Commission said Tuesday, warning that demographic change will require targeted policies to sustain economic growth and public finances.

According to Anadolu Agency, in its third Demography Report, the Commission stated that the EU's population is expected to decline from 450.6 million today to around 445 million by 2050 and 398.8 million by 2100, while people are living longer than ever before. By 2050, nearly one in three EU residents will be aged 65 or older, compared with one in five today.

The Commission highlighted that the shrinking working-age population necessitates greater labor market participation and productivity to offset labor shortages. Currently, around 20% of the working-age population is outside the labor market, with the gender employment gap at 10 percentage points and approximately 8 million young people neither in education, employment, nor training.

The report emphasized the importance of boosting women's participation in the workforce, aiding young people in acquiring skills, enabling older people to remain in work if they choose, and increasing productivity through innovation and artificial intelligence to tackle these challenges. Skilled migration is also seen as vital in addressing labor shortages, with a focus on upskilling and reskilling people already living in the EU.

Additionally, the aging population is expected to increase demand for healthcare and long-term care. The number of people requiring support is projected to rise from 36 million to 48 million by 2070, while the share of people aged 80 and over is anticipated to double. The Commission is supporting member states through initiatives covering housing, skills, healthcare, poverty reduction, and regional development, aiming to turn demographic change into an opportunity rather than a challenge.