At the same time, a healthier population with a longer life expectancy can remain in the labor market longer, contributing to innovation and economic growth. Targeted policy decisions in the areas of professional skills, care, housing, and regional development will help EU member states mitigate the effects of demographic changes. Europe's population is declining, but people are living longer than ever before According to a report prepared by the Joint Research Centre, Europe's population of 450.6 million has peaked. It is projected that by 2050, the population will be around 445 million, and by 2100, it will be 398.8 million, which is approximately 11.7 percent less compared to the 1970s. At the same time, Europeans are living longer than ever before, with a life expectancy at birth of 81.5 years as of 2024 (79.8 years in Estonia). This reflects improvements in healthcare, living standards, and social conditions. By 2050, nearly one in three EU residents will be aged 65 or older, and by 2100, life expectancy could exceed 90 years for women and 86 years for men. A child born in the EU in 2023 is expected to live without serious illnesses until 75.3 years. However, demographic trends are accompanied by labor shortages, strained public budgets, pressure on care, education, and vocational training systems, as well as on regional cohesion. At the same time, this opens up new opportunities — for instance, the economy related to longevity (the "silver economy") is growing, creating new markets for goods, services, and innovations specifically designed for older people, and generating opportunities for economic growth and job creation. This also presents an opportunity to promote innovation in healthcare, technology, and financial services. ## ## Workforce and Care Needs are Changing According to the report, significant demographic changes occurring in the EU are transforming the labor market and necessitating increased labor force participation and productivity. About 20 percent of the working-age population is not participating in the labor market (around 26 percent in Estonia), and the gender employment gap is 10 percent. Additionally, 8 million young people are neither in education, employment, nor training (the NEET youth rate in Estonia is about 11 percent). At the same time, employment among people aged 55–64 is increasing compared to several decades ago. The EU supports women's participation in the labor market, helps young people acquire skills, allows older workers to remain active if they wish, and enhances productivity through innovation and artificial intelligence. Birth rates are also declining, and as European society ages, the working-age population is shrinking. Migration of skilled workers already plays an important role in alleviating labor shortages. Talents attracted from outside the EU help in key sectors of the economy, drive innovation, and help balance the effects of an aging population. Nevertheless, the priority should remain on upskilling and reskilling people already living in the EU. The transition to a longevity society also increases the demand for healthcare and long-term care services. It is expected that by 2070, the number of people needing support will grow from 36 to 48 million, and the proportion of people over 80 will double. While this puts pressure on budgets, it simultaneously stimulates innovation and efficiency improvements in care systems. The EU is helping member states cope with demographic changes through various policy measures that support people at all stages of life. In the Commission's proposal for the next multiannual financial framework (2028–2034), demographic changes are considered one of the objectives of national and regional partnership plans.