a)

Demographic change in the sense that EU's growing economic old-age dependency ratio will put pressure on increasing the productivity levels of those who will enter the labour market in order to compensate for the exit of an experienced labour force into retirement and equally to contribute to the support of increased social expenditures, owing also to a more numerous old-age population. While opening up opportunities in the care economy, these evolutions can also require dialogue on inter-generational fairness issues.

b)

Advances in technology and innovation, as supported also by EU's Digital Single Market and Research and Development initiatives, are expected to bring about an increased use of digital technology in the economy and make certain jobs obsolete, while employment opportunities in other economy areas can open up. In order to benefit from such transformations, all young Europeans, including those with fewer opportunities, must have access to inclusive and quality formal and non-formal education that will improve their full range of skills.

c)

Demand for higher skills on the labour market. Already employers are finding it difficult to fill vacancies for higher and medium level jobs, while at the same time the workforce comprises three times more low skilled people than available elementary occupations (1). Since the demand for low-skilled workers is declining further, in varying degrees throughout Member States, young people entering the labour market will need higher levels of education and training, equipping them with the key competences for lifelong learning as well as specific digital, vocational and personal skills that will support them in managing their diverse future career pathways.

d)

The need to address climate change, where EU's ambitions to move to a competitive low-carbon economy can generate an increased demand on the labour market for skills required in sectors such as renewable energy, environmentally sustainable construction and retrofitting or sustainable agriculture.

e)

Increase in global value chains where production of goods and services are spread across continents. The process is further facilitated by the advent of new forms of employment as introduced for instance by the platform economy which affects the traditional employer-employee relationship, the evolution of labour market and the employment legislation. Challenges such as income insecurity, lack of social protection, in-work poverty, precarious working conditions and workplace harassment, need to be addressed.