How Fast Is Slovenia Aging and How Does It Affect the Labour Market?

According to experts, during the next 30 years the number of elderly people in the country will grow by 50%. By 2060, this category will account for almost a third of the population in Slovenia.

A decrease in the birth rate and an increase in the life expectancy led to an increase in the proportion of elderly people over 65 years from 11% to 18% of the total population. According to forecasts, the share of social safety expenditures will increase to 25% of GDP as compared to the current 19%.

In the labour market, a decline in the working-age population in the next decade will slow down the economic growth. Demographic trends will also cause a reduction in funding sources and increase the social safety expenditures. Therefore, in 2015, the Government has additionally allocated 1.4 billion euros for the payment of pensions.

The Head of the Department of Macroeconomic Analysis and Development (Umar) Boštjan Vasle notes that Slovenia will soon face serious demographic changes that can be neutralized only by attracting labour forces from abroad. The country is already experiencing a shortage of doctors, engineers, welders, and employees of the hospitality industry.

Source: siol.net