A recent ETUC study as part of the SociAll project funded by the EU Commission, with the involvement of experts of the Chamber of Labour, examines the impact that the implementation of the employment target of the European Pillar of Social Rights Action Plan would have on the development of the economic dependency ratio and on pensions.

The European Pillar of Social Rights Action Plan contains the ambitious target that 78% of the population aged 20 to 64 in the EU should be employed by 2030 (up from 73% in 2019).

In 2019, there were around 73 benefit recipients (unemployed and pensioners) for every 100 people in employment. A very important question (not only) for pensions is how this ratio will develop in view of the ageing population. The ETUC study shows that achieving the employment target of the European Pillar of Social Rights Action Plan would have a very positive impact on the economic dependency ratio. In 2030, despite considerable population ageing, which was taken into account in the calculation, there would be 71 benefit recipients for every 100 people in employment. The results of the study underline the enormous potential that better labour market integration of people of working age offers for pensions.