Medium-term employment challenges

Over the next decade, the European Union will face multiple challenges in assuring growth and jobs, the response to which will call for a re-casting of the framework for the co-ordination of employment policy at EU level. Some of these challenges will arise from known drivers of change, while others will reflect the evolving nature of the EU economy. The aftermath of the severe recession that followed the 2008 financial crisis will loom large, but it remains unclear whether it will have an enduring effect or prove to be an acute, but ultimately short-lived interruption of ‘business-as-usual’. The focus of this study is the EU level, and the findings are intended to contribute to the identification of reforms and policy measures that are potentially the most significant for Europe to ensure growth and jobs in the medium term. The adverse consequences of recession will be more easily surmounted in some Member States, while others will experience an enduring impact of the crisis that will call for more extensive adjustment to remain competitive and, in some cases, a painful adaptation of priorities. In parallel to this, all Member States will have to encourage the development of new activities associated with adaptation to climate change, while also expanding services and products for older citizens.