Working Longer in 2025 Is No Longer Optional: Supporting Older Workers Is Now a Necessity for Europe’s Economy

Mar 31 2025 By Evelyne Hoffman Ecology 0 Comments

By 2050, Europe’s old-age dependency ratio will surge to 52% a new Eurofund report (Keeping Older Workers in the Labour Force) shows. That means for every 100 working-age individuals, 52 will be aged 65 or older. This shift is no longer a distant demographic footnote – it’s a seismic transformation already straining labour markets, pension systems, and economic productivity. New research from Eurofound confirms what economists have long feared: Working longer is a necessity, without actively retaining older workers in the labour force, Europe’s economy will face structural shortages it may not recover from.

Let’s see what extra insights this new report offers.

Employment Growth Masks Hidden Risks

Between 2010 and 2023, the employment rate for Europeans aged 55–64 jumped by nearly 20 percentage points. In 2023 alone, almost 40 million workers in the EU were aged 55 or older – an increase of over 16 million compared to 2010. Yet this progress hides a harsh truth: older workers are still more likely to fall into long-term unemployment. Once out, they struggle to return.

The data shows that 13.5 percentage points more older workers remain long-term unemployed compared to mid-career peers.

Table 1: Employment Rate by Age Group (EU-27, 2010–2023)

Year	Age 15–24 (%)	Age 25–54 (%)	Age 55–64 (%)
2010	30	76	45.0
2015	32	77	52.0
2020	33	78	61.0
2023	36	80	64.5

Despite the employment gains, the labour market becomes increasingly difficult to navigate with age. Older jobseekers face longer unemployment spells and limited chances of re-entry. In 2023, the long-term unemployment rate for workers aged 55–64 stood at 35.5%, compared to 22% for mid-career workers.

Table 2: Long-Term Unemployment Rate by Age Group (EU-27, 2023)

Age Group	LT Unemployment (%)
15–24	18.0
25–54	22.0
55–64	35.5

Job Quality Is Polarized

Older workers tend to enjoy better job quality overall – largely due to the “healthy worker effect”, where those in poor conditions retire early. However, one in five older employees still work in “high-risk” jobs associated with mental strain, low income, and poor work–life balance. One third are in “empowered” jobs that provide flexibility, autonomy, and stability.

Yet disparities are sharp across gender lines. Older women are more likely to face job insecurity, lower pay, and reduced access to upskilling.

Table 3: Gender Employment Gap (Age 55–64), 2023

Country	Gender Gap (%)
Poland	36.3
Hungary	29.6
Austria	22.8
Romania	16.3
Sweden	0.0
France	3.3

Flexibility Over Full-Time Work

Older workers increasingly prefer part-time work or self-employment over traditional full-time roles. In countries like the Netherlands, Germany, and Austria, more than a third of older workers are part-timers. This is often a strategic choice to transition into retirement.

Table 4: Part-Time Work Share by Age Group (EU-27, 2023)

Age Group	Part-time Share (%)
15–24	33.3
25–54	15.4
55–64	19.8

At the same time, self-employment is more common among older workers—driven both by necessity and autonomy.

Retention Is Better – but Uneven

From 2010 to 2022, the proportion of workers aged 60–64 who stayed with their employer for five years or more rose from 44% to 57%. However, this rate varies wildly across Europe. Ireland and Greece lead with rates above 75%. In contrast, countries like France and Luxembourg struggle to retain even 45% of older workers long-term.

Table 5: Retention Rate of Workers (Age 60–64), 2022

Country	Retention Rate (%)
Greece	78.5
Ireland	77.1
Netherlands	72.1
Germany	66.2
France	40.3

What’s Keeping People Out?

Barriers like poor health, caregiving responsibilities, and outdated skills keep many older workers from staying active. Upskilling remains underdeveloped – especially in Eastern Europe. Most Member States fall short of the EU’s 60% participation target for adult learning.

Worse still, age discrimination remains rampant. Older applicants are routinely filtered out in recruitment, and internal HR practices often fail to address age-related bias.

What Needs to Change?

Eurofound’s report calls for urgent policy action:

• Reward later retirement through higher pension accruals.
• Discourage blanket early retirement while protecting those in physically demanding jobs.
• Invest in care infrastructure so workers don’t exit to care for relatives.
• Tackle ageism head-on in recruitment, training, and promotion.
• Roll out flexible retirement pathways, such as gradual or part-time retirement.

Working Longer Is Indeed No Longer Optional

Europe doesn’t just have a greying population – it has a labour force essential to its future economic viability. Supporting older workers isn’t a nice-to-have. It’s economic survival. With retention rates improving and job quality polarizing, the window to act is now.

Anything less, and the next workforce crisis won’t be about age. It’ll be about absence.

FAQ: Older Workers in Today’s Labour Market

What is the definition of “older workers”?

“Older workers” typically refers to individuals aged 55 and over who are still active or eligible to be active in the labour market. In policy and research contexts across the EU, the group often includes those aged 55–64, and sometimes extends to 65–69 depending on employment patterns and retirement laws.

Why are older workers important to the economy?

With Europe’s ageing population and a projected old-age dependency ratio of 52% by 2050, older workers are essential to maintaining a stable workforce. Retaining them helps fill labour shortages, reduces pressure on pension systems, and preserves valuable experience and skills.

Are more older people working now compared to the past?

Yes. Between 2010 and 2023, the employment rate for people aged 55–64 in the EU rose by nearly 20 percentage points, reaching 64.5%. The number of older workers grew from 23.8 million to almost 40 million during the same period.

What challenges do older workers face in the job market?

Older workers face:

• Higher risk of long-term unemployment (35.5% vs. 22% for mid-career workers)
• Age discrimination in hiring and promotion
• Health issues that reduce workability
• Care responsibilities that force early retirement
• Limited access to upskilling or retraining

What kind of jobs do older workers prefer?

Many older workers prefer part-time roles, self-employment, or flexible schedules. In 2023, nearly 20% of older workers in the EU worked part-time, with a higher share among women (33%).

Do older workers have good job quality?

It varies. About one-third of older workers are in “empowered jobs” with high autonomy and satisfaction. However, one in five are stuck in “high-risk jobs” tied to poor mental health, low income, and bad work–life balance. Older women often experience worse job quality than men.

Is retention of older workers improving?

Yes. The five-year retention rate for workers aged 60–64 rose from 44% in 2010 to 57% in 2022. Still, rates differ by country—ranging from 78.5% in Greece to below 50% in France and Luxembourg.

What are the main reasons older workers leave the labour force early?

• Poor health or disability
• Inadequate access to healthcare
• Lack of retraining opportunities
• Early retirement incentives in pension systems
• Family care obligations

How can employers support older workers?

• Offer flexible retirement pathways (e.g., phased retirement, part-time roles)
• Provide upskilling and reskilling
• Combat age discrimination in policies and practices
• Improve occupational health and workplace ergonomics
• Create intergenerational teams to share knowledge

What policies are EU countries implementing to support older workers?

Many Member States are:

• Raising statutory retirement ages
• Offering pension bonuses for late retirement
• Investing in adult education
• Expanding care infrastructure
• Promoting age-friendly workplaces