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Due to its historical and cultural traditions, Europe is often referred to as the “Old Continent.” Today, the term “Old Europe” not only contrasts the continent with the New World—that is, the United States—but also increasingly reflects the continent’s demographic trends. Due to low birth rates and rising life expectancy at birth, the population of Europe—and within it, the European Union—is growing older.
Today, one in five residents of the European Union is over 65, based on a new analysis from the Oeconomus Economic Research Foundation. There are fewer children under 14 in the EU than there are people over 65. There are differences between individual member states; in Ireland and Luxembourg, the proportion of those under 14 still exceeds that of those over 65, while in Italy, Portugal, and Bulgaria, nearly one in four residents is over 65.
Over a 10-year period (2015–2025), the proportion of people aged 65 and older in the EU increased by an average of 3 percent, with the largest increases occurring in Poland, Slovakia, and Croatia.
The population ageing has progressed more slowly in Malta, Luxembourg, and Sweden, but these are the countries where the proportion of residents not born in the country is particularly high, and young immigrants are improving demographic indicators. In Luxembourg, for example, more than half (51.5%) of the residents in 2025 were not born in Luxembourg; in Malta, this figure exceeds 30 percent, and in Sweden, it is over 20 percent.
Median age in European Union member states in 2025
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Today, the median age of the European Union’s population is 44.9 years, meaning that half of the EU’s 450.9 million residents are younger than 44.9 years, while the other half are older. Naturally, there are significant variations here as well: Ireland is “relatively young,” with a median age of just 39.6 years, while in Italy the median age already exceeds 49 years (49.1), and in Bulgaria and Portugal it is also higher than 47 years.
Hungarian indicators: Employment trends among older age groups in Hungary
According to data from the Hungarian Central Statistical Office (KSH), the employment rate for the 55–59 age group was exceptionally high in the fourth quarter of 2025, at nearly 84 percent. The employment rate begins to decline significantly starting at age 60: during the period in question, the employment rate for the 60–64 age group fell to 58.1 percent. Among those aged 65 and older, 23.4 percent remained in the workforce.
Budapest. Photo: Pexels
For men, the employment rate gradually declines in the 55+ age group, with a more pronounced drop occurring after reaching retirement age. The employment rate for men aged 65–69 plummets from 71.3 percent in the previous age group (60–64) to 19.5 percent. Overall, according to Q4 2025 figures, 28.1 percent of men aged 65 and older remained active.
For women, the employment rate begins to decline significantly one age group earlier: it drops from 80.8 percent in the 55–59 age group to 46.3 percent in the 60–64 age group, and then to 14.1 percent after reaching retirement age. One likely reason for this decline occurring one age group earlier among women than among men is the Women 40 program. Overall, according to Q4 2025 indicators, 20 percent of women over 65 remained active.
Employers and decision-makers should also pay attention to the over-55 age group because the educational attainment rates for those aged 55–64 are strong.
In Hungary, the proportion of people with a higher education degree in this age group comes closest to the EU average (25%). Based on the 2022 census data, one-quarter of employed people aged 55–64 hold a higher education degree, one-third have a high school diploma, and another one-third have a secondary education without a high school diploma. Barely one-tenth have at most a primary school education. The proportion of women with a college degree is high among those aged 55–64 (26%), and 57.4% of women in this age group have a secondary school diploma.
The exclusion of workers over 55 from the labor market due to their age undermines the country’s competitiveness in several ways: employers lose a well-trained workforce with significant work experience. On the other hand, keeping them in the labor market contributes to their well-being, which can reduce the pressure on the pension system and the social and healthcare systems. If no solution is found for the employment of older generations, employers will have to draw from an increasingly shrinking younger generation.
Via Oeconomus Economic Research Foundation; Featured photo: Pexels
The post Labor Market Shows Rising Older-Worker Participation appeared first on Hungary Today.
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