Exclusion and Inequality in Late Working Life in Europe

The impact of demographic ageing on the labour market is becoming more pronounced' (EC 2020b: 15), while digitalisation and the green transition are causing shifts in production and industry structures (Eurofound 2023; NCM 2020). Older workers are increasingly expected to remain in the labour force, not only to support public budgets in the pension system, but also to meet the demand for skilled labour in the market. However, none of these trends in themselves will bring specific benefits to older workers. Instead, increases in working life expectancy are not uniform, and heterogeneous shifts in work and employment will create winners and losers. They can exacerbate existing problems of labour market inequality and risks of exclusion, and threaten the productivity and resilience of European societies and economies.

Based on nine different projects, focusing on inequality and exclusion risks in extended late working life and identifying preventive policies in a comparative perspective, the results of the EIWO research programme show how job loss, health interruptions, care responsibilities and unwanted labour market exits, combined with low chances of re-entry, are key drivers of inequality and social exclusion in general and economic exclusion in particular. EIWO also shows how sectoral policies and company practices can contribute to inefficiency and inequality - or have the opposite effect. The promotion of lifelong learning and age integration is discussed as a policy option to address the problems of inequality and exclusion risks in late working life.