Ageing Societies and Labor Market Sustainability

Population ageing is emerging as a dominant demographic trend with far-reaching consequences for labour markets and long-term economic viability. With life expectancy increasing and fertility rates declining, many European countries are concerned about their ability to sustain employment, productivity and social cohesion. This is why it is essential to understand the effect of ageing on labour market outcomes for designing effective and inclusive policy responses. The scientific literature shows mixed evidence on the relationship between population ageing and labour market performance. Earlier studies tended to emphasise negative effects through declines in labour supply and increases in dependency ratios. More recent research has shown that these effects are conditional and mediated by factors such as health, education, job quality and institutional arrangements. However, the literature remains fragmented and there is little empirical integration of these dimensions into a unified framework of labour market sustainability. The paper analyses the connection between the phenomenon of population ageing and the sustainability of the labour market in Romania, one of the important indicators being the employment of the population aged 55-64 years. The analysis is performed using a time series multiple regression method on an annual data set comprising demographic ageing, health status, educational level and indicators of job quality. The research concerns the question of whether ageing has a determinative effect on labour market outcomes, or whether the effect is contingent upon wider social and economic conditions. The results suggest that population ageing is positively related to employment of older workers, and that health conditions play an important enabling role. Job quality and education show context-dependent effects, which highlight structural and cohort-specific features of the Romanian labour market. The findings imply that ageing does not threaten labour market sustainability but interacts with institutional and social factors. The paper provides an integrative empirical perspective to the question of labour market sustainability in an ageing society, contributing to the field with evidence that supports a move away from demographic explanations towards multidimensional and policy relevant approaches.