Abstract
Due to low fertility rates, higher life expectancies and substantial outward migration, Lithuania is one of the fastest ageing countries in Europe. As a result, the working-age population is expected to decline dramatically, giving rise to a number of economic, labour market and social challenges. Inorder to mitigate the effects of ageing, policies are needed to raise the participation rates of older workers. This includes placing greater emphasis on active labour market programmes and other measures to ensure older workers are given the opportunity and skills to return to work and remain attached to the job market. Social dialogue and tripartite discussion are vital to successful policy design as well as generating the public support to implement the necessary reforms. In addition, a number of complementary policy options will also be merited to fully attenuate the downside risks, notably by increasing the productive capacity of the core working-age population through enhanced labour productivity, increased participation of all groups and addressing the root causes of emigration. This working paper discusses theses labour market implications in more detail and provides international policy examples on how best to address these challenges.