Europe's got talent. But talent needs to be nurtured, especially as the EU is going through important demographic transition. This is even more needed in regions that suffer from a shrinking labour force and a low share of persons with a tertiary education, and in regions hit by the departure of young people.
Harnessing Talent in Europe: a new boost for EU Regions
- 17 January 2023
If left unaddressed, this transition will trigger new and growing territorial disparities as regions age and fall behind in number and skills of their workforce. It can change Europe's demographic landscapes hampering the resilience and competitiveness of the EU.
Ensuring that regions facing a talent development trap become more resilient and attractive is crucial in the EU's commitment of leaving nobody and no place behind.
This is why the Commission is launching the ‘Talent Booster Mechanism'. This Mechanism will support EU regions affected by the accelerated decline of their working age population to train, retain and attract the people, the skills and the competences needed to address the impact of the demographic transition.
The Mechanism is presented in today's Communication on Harnessing Talent in Europe's Regions and is the first key initiative in 2023 contributing to the European Year of Skills as proposed by the Commission, which aims to bring a fresh impetus for re- and upskilling. The Communication offers tailor-made, place based and multi-dimensional solutions, including the use of existing EU funds and initiatives to support regions most affected by the ongoing demographic transition and its side-effects and prevent the emergence of new and increased territorial disparities in the EU.
The Commission is also publishing today its 2023 Report on the Impact of Demographic Change, which updates the Demography Report of 2020. It revisits the demographic trends and the impacts that had been identified in light of recent developments, such as Brexit, Covid or the Russian military aggression against Ukraine. The Report stresses that, to ensure future prosperity and well-being in the EU, it is crucial to address the challenges brought about by the demographic transition. These challenges include an ageing as well as declining population, and a shrinking working-age population, but also increasing territorial disparities, including a growing urban-rural divide. The Report looks into how and if the established demographic patterns are accelerated or disrupted, and when they take place, if the disruptions are transitory, or have a lasting impact on demographic change.
The ‘talent development trap' in some EU Regions
EU Member States are facing a sharp decline of their working age population. This population has decreased by 3.5 million people between 2015 and 2020 and is expected to shed an additional 35 million people by 2050.
82 regions in 16 Member States (accounting for almost 30% of the EU population) are severely affected by this decline of the working age population, a low share of university and higher-education graduates, or a negative mobility of their population aged 15-39. These regions face specific structural challenges such as inefficiencies in labour market, education, training and adult learning systems, low performance in the areas of innovation, public governance or business development, and low access to services. By addressing these challenges, the regions could attract more skilled workers. Several of these regions are already in a ‘talent development trap' while the others face this risk in the near future. If left unaddressed this situation will threaten the long-term prosperity of the EU.
A new EU mechanism: the ‘Talent Booster Mechanism'
The Commission will develop the Talent Booster Mechanism based on 8 pillars:
Unleashing talent through existing EU funds and initiatives
The Communication also highlights how existing EU instruments and policies can support economic revitalisation and the development of the right skills to attract high-potential activities in the affected regions, including through the steer of the European Semester. Among others, the new European Innovation Agenda that sets out the Deep Tech Talent Initiative, a specific flagship to respond to the talent gap in deep tech sectors, integrating all regions in Europe.
The Communication also stresses how Cohesion Policy is and will continue to help these regions to diversify their economy, upgrade the accessibility to services, boost the efficiency of public administration and ensure the involvement of the regional and local authorities through dedicated place-based strategies.
Finally, it offers many examples of national and regional initiatives and best practices that effectively address the structural challenges in a local context, enhancing the regions' attractiveness for talents. To facilitate mutual learning, the Commission continues to work with national authorities, mapping the most acute demographic challenges they have identified as well as examples of policies and projects aimed at managing the impacts of demographic change.
Next steps
The Commission will regularly report on the implementation of this Communication.
Background
Addressing demographic change is key to building a fairer and more resilient society. As the on-going demographic transition affects various policy areas, it requires that policymakers, engage in complex coordination involving all relevant actors at EU, national, regional, and local level. While most of the policy levers dealing with these challenges remain at the national level, the Commission takes account of the implications and impact of demographic change in its policy proposals.
The Commission already adopted a Report on the Impact of Demographic Change in Europe in 2020, which paved the way for further initiatives in 2021 with the adoption of the Green paper on ageing and the Long-term vision for the EU's rural areas towards 2040.
Among the most recent initiatives at EU level which support Member States in dealing with demographic change in various areas and sectors, there is the European Care Strategy with the Council Recommendations on access to affordable, high-quality long-term care and early childhood education and care, the EU Comprehensive Strategy on the Rights of the Child and the European Child Guarantee, Youth Employment Support Package, the Commission Recommendation on Effective active support to employment, the Council Recommendation on ensuring a fair transition to climate neutrality, the Disability Employment Package and the recent proposal to make 2023 the European Year of Skills as well as the Communication on Harnessing Talent in Europe's regions that was adopted today.
Freedom of movement is one of the EU’s most precious achievements. To complement this, we must ensure that regions experiencing population shrinking and thereby facing a ‘talent development trap’ have the means to attract and harness the fruit of their investments. Demographic change can be an opportunity to strengthen resilience across EU territories.
Dubravka Šuica, Vice-President for Democracy and Demography - 17/01/2023
From all the development traps, the talent trap is one of the most concerning as it deprives our regions from their best and brightest. Cohesion policy with its place-based approach can act as a catalyst to help regions retain, develop and attract talent. This is a condition to avoid increased territorial disparities across the EU.
Elisa Ferreira, Commissioner for Cohesion and Reforms - 17/01/2023
The aim of the European Year of Skills is to promote a mindset of reskilling and upskilling in the context of the rapidly evolving labour market. We want to boost the competitiveness of European companies and realise the full potential of the digital and green transformation in a fair and inclusive way. This is a good opportunity for regions facing difficulties in attracting or retaining skilled workers to identify the obstacles that prevent their businesses and workforce to shift towards more productive and future-fit sectors. The new dedicated mechanism to boost talents in regions can be an important support in this.
Nicolas Schmit, Commissioner for Jobs and Social Rights - 17/01/2023
The cornerstone of EU principles is ensuring that all Europeans have the same possibilities, regardless of the region in which they were born. Innovation and education play a crucial role in ensuring that all EU regions, especially rural areas, have a supportive innovation ecosystem and a talent pool that is well-prepared for their future competitiveness and prosperity.
Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education and Youth - 17/01/2023
More information
- Communication on Harnessing Talent in Europe's Regions
- Report on the impact of demographic change – in a changing environment
- Questions and Answers on Harnessing Talent in Europe's Regions and the Demography Report
- Factsheet on Harnessing Talent in Europe's Regions
- The impact of demographic change in Europe
- Exploring EU regional demographic trends
- Cohesion Policy 2021-2027
- Cohesion Open Data Platform
- Kohesio
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