In Bulgaria, more than 60% of people aged 60 to 64 remain active in the labor market, a figure that surpasses the European Union average. This places Bulgaria 11th out of the 27 EU member states. According to a recent report by Allianz Trade, this high level of workforce participation in the older age group is linked to the country’s rising retirement age.

Sweden leads the EU in this regard, with over 73% of people aged 60 to 64 continuing to work, compared to the EU average of 53%. Luxembourg has the lowest rate at just 23%. Bulgaria also stands out for its relatively high proportion of workers aged 64 to 69, with nearly 20% still employed, whereas Romania’s share is only 5%. Estonia, however, leads the way in this age group with a rate of 38%.

The report highlights that people aged 60 to 69 could be key to mitigating the EU's growing labor shortage. By 2040, their participation in the workforce could increase from 9% in 2023 to 14.2%, helping to fill up to 75% of the projected labor gap. However, the report stresses that keeping older workers in the labor market will require changes in workplace practices. This includes reorganizing work processes, offering flexible hours and part-time work, and investing in age-appropriate equipment. Initiatives like working from home, continuous learning, and addressing ageism are also crucial.

Attracting migrant workers is another proposed solution to Europe's labor market challenges, although Bulgaria lags behind the rest of the EU in this area. Only 0.2% of Bulgaria’s workforce is foreign-born, the lowest in the EU, compared to an average of over 9% across the union. Luxembourg, in particular, stands out with over 53% of its workforce being foreign. As Bulgaria remains a major source of labor for Western Europe, its own labor market faces significant challenges.

Another key factor in supporting older workers is healthcare. Advances in healthcare can delay age-related illnesses, thus prolonging the working life of older individuals. The transfer of knowledge between generations in the workplace is also essential, as is adapting management styles to be more inclusive of older employees. As technological changes, including the rise of artificial intelligence, disrupt industries, companies will need to rethink their strategies to accommodate both older and younger workers, ensuring a productive and cohesive workforce.

Sources:

• Allianz Trade
• econ.bg