DEMIFER: DEmographic and MIgratory Flows affecting European Regions and cities Johanna Roto on behalf of the DEMIFER team Romanian ESPON Conference, Bucharest, 25th November 2010 Demographic State • At present > 1/4 of the NUTS2 regions in the ESPON area experiences population decline • Main demographic changes across Europe: • slowing of population growth • Ageing of the population • Migration: intra- and extra-Europe migration Demographic State • The size of the working age population declined in 25% of all NUTS2 regions in 20002007 • in 50 regions the working age population has increased by > 1% / year • Big cities attract labour migrants Regional differentiation • Therefore there is not one unambiguous effect of migration and demography on the competitiveness of European regions and thus Policy strategies • Different types of regions face different challenges -> Policies stimulating i.e. mobility may have different impacts on different types of regions • Different challenges ask for different mix of policies • Bundles of policies -> need for cross-sectoral thinking TYPOLOGY OF REGIONS Case studies • Case: i.e. ROMANIAN MACROREGION - North-East and South-East Regions Typology of the Demographic Status in 2005 • • Based on: share of both young adults and elder population, natural population change and net migration rate. Retaining favourable trends: • • • Dealing with population decline: • • • 'Challenge of Labour Force' 'Challenge of Decline' Challenging disparities: • • • 'Euro Standard' 'Family Potentials types' 'Challenge of Ageing' 'Young Potentials‘ Overseas Type 2 & 5 population decline & “lagging behind” Characteristics: • Below average: GDP level, share of migrants, share of highly educated, labour force participation • Above average: GDP growth, unemployment Policy options for regions dealing with population decline: • Making this regions attractive places to live and work • Boost natural population growth, attract immigrants and increase opportunities for the labour force. Projections Impact of migration on population change and to labour force Three reference scenarios: 1. Status quo projection - the base period rates and flows are held constant until 2050 2. No migration projection - the base period rates and flows are held constant until 2050 but all migration rates and flows are set to zero (This gives a natural increase only projection) 3. Free movement within Europe but no extra-Europe migration - the base period rates and flows are held constant until 2050 but all extra-Europe migration rates and flows are set to zero The impact of migration on population change • Under the Status Quo scenario the population declines by 40 million over the 45 years. • Over 75% of the regions are gainers of migration, and in 1/4 of the regions the 2050 population size will be 30% higher. • Without changes in demographic and migratory flows, 1/3 of the regions will face considerable population decline (> 20% by 2050). Future trends in the labour force • The age pattern of female labour force participation differs considerably • Regional disparities in activity rates depend on economic developments • If the rates would not change, the size of the labour force in the ESPON area will decline by 17% until 2050 Policy scenarios • Population scenarios are important devices for thinking about alternative futures, taking into account both the mutual relationship between demography & economy and the linkages between economic & social policies and demographic & migratory developments • Policy scenario implications for: • Mortality • Fertility • Migration • Population ageing remains the most important demographic challenge in all scenarios Policy scenarios The bottom of the European league: Romania GSE Population LSE EME CME STQ 25,000,000 Natural Increase GSE LSE EME CME STQ Net Migration 10,000,000 GSE LSE EME CME 2045/50 2040/45 2035/40 2030/35 2025/30 2020/25 15,000,000 2015/20 2005/10 20,000,000 2010/15 0 -100,000 -200,000 -300,000 -400,000 -500,000 -600,000 -700,000 -800,000 -900,000 -1,000,000 STQ 0 -200,000 -400,000 -600,000 -800,000 5,000,000 -1,000,000 -1,200,000 -1,400,000 2045/50 2040/45 2035/40 2030/35 2025/30 2020/25 2015/20 2010/15 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2005/10 -1,600,000 0 Population Change in 2005-2050 - Scenarios • • • • GSE: Large decreases in mortality, large increases in fertility. Migration levels and regional inequalities increase significantly. EME: sustainable economic growth and strong competitive goals. Less favorable developments in mortality and fertility, large increases in migration LSE: relatively small decreases in mortality, constant fertility patterns and declining migration levels. CME: low economic growth, environmental challenges are not met, and strong competitive goals. Decreasing mortality & fertility, constant migration levels Labour Force Change in 2005-2050 - Scenarios • The growth of the labour force does not just depend on the size of the working age population but also on the level of labour force participation rates • • • • GSE and EME: high economic growth will lead to an increasing trend in labour force participation rates. LSE: the poor economic and environmental developments lead to falling activity rates everywhere CME: activity rates are falling due to a sustained economic downturn. Disparities are growing In the future a lot of regions will be struck by a shrinking labour force. The LSE scenario sketches the most dramatic setback. Least dramatic is the setback in the EME. Some conclusion • We believe policy and demography are linked. • Different policy bundles will influence the direction of change in future population of Europe, its countries and regions. • If the status quo holds for the next forty years, Europe’s population will decline and age . • If successful policies, Europe’s population could grow by ~20%. • If policies are not so successful, Europe’s population will hover around 500 million. • No matter what scenario comes to fruition, life expectancies will increase substantially and the populations of European regions will age dramatically. • Many regions will lose population through out-migration but the net welfare of today’s population will be improved Policy Bundles/Combinations - Migration • Immigration • May be an answer in many regions and help narrow the gap between Eastern/Southern regions and Northern /Central Europe. But these policies must be complemented by policies to help the integration of newcomers (language, skills). • Inter-regional migration • Policies aimed at increasing mobility between European regions may reduce cohesion, not increase it. Thus policies aimed to stimulate migration are only effective as part of policy bundles to improve living condition in poor regions (jobs, housing, schools). • Extra-European migration • Immigration policies to facilitate economic migration must be coupled with successful integration policies to attract higher skilled migrants Policy Bundles/Combinations - Labour Markets and economy • Increasing number of persons and years on labour market • Policies aimed at increasing the age of retirement should be combined with policies stimulating healthy behaviour • Raising labour force participation results in decreasing disparities only if the labour market performs well. Thus policies to reduce gender equalities and improve work/child care balance and integration of immigrants are needed for this. • Economic growth/labour supply • Growth in labour productivity can be raised by technology, capacity building and investments in education and training, but to be effective these measures need to be complemented by measures to compensate the effects of ageing In conclusion… • Policies aimed at affecting demographic and migratory flows should not be considered in isolation from other policies, such as housing, labour market, integration of migrants, education, innovation and environmental quality Thank You! The DEMIFER project team • NIDI (The Hague, Netherlands) – Lead Partner, state of the art • • UNIVIE (Vienna, Austria) – Demographical typology • • Phil Rees, Peter Boden, Adam Dennett, John Stillwell PBL (The Hague, Netherlands) – Scenarios & labour force change • • Daniel Rauhut, Johanna Roto, Lisa van Well University of Leeds (Leeds, United Kingdom) – Scenarios & population change • • Marek Kupiszewski, Dorota Kupiszewska Nordregio (Stockholm, Sweden) – Policy & Dissemination • • Heinz Fassmann, Ramon Bauer IOM/CEFMR (Warsaw, Poland) – Multipoles Projection • • Joop de Beer, Nicole van der Gaag, Rob van der Erf, Peter Ekamper Andries de Jong, Mark ter Veer CNR (Rome, Italy) – Case studies • Frank Heins, Corrado Bonafazi, Giuseppe Gesano