The Employment Outlook is an annual report by the OECD, which looks at the latest trends and developments in the international labour market. The 2025 edition, Can we get through the demographic crunch?, explores labour market dynamics across OECD countries, focusing on population aging and the key role of digital skills in maintaining older generations’ active participation in the workforce.
One of the key factors reshaping the labour market is the rise of artificial intelligence (AI), which increases the need for citizens and employees to acquire digital, business and management skills. At the same time, AI use can diminish routine cognitive and clerical skills. These changes have an impact on older workers to different extents, depending on domain, level of education and skills.
Similarly, the twin digital and green transition is creating new types of jobs, and with them a need for workers to develop a stronger mix of digital and technical skills. This is especially important for older generations, who risk being left behind without the right support.
The issue also connects to the EU’s Digital Decade 2030 targets, which aim for 80% of citizens to have at least basic digital skills and for Europe to reach 20 million ICT specialists. According to the latest State of the Digital Decade report, progress remains slow, and these goals may not be achieved on time unless more is done to boost training and investment in skills.
Taken together, the OECD and EU perspectives both highlight a simple truth: helping people build digital skills is about more than employability – it’s about ensuring that everyone can take part and thrive in the future of work.
Finally, the report calls for a strategy based on incentives, employability, and opportunities to help older workers thrive and sustain economic performance. Good practices already exist, such as Switzerland’s Viamia programme (which offers career guidance to workers over 40), and Estonia’s AI Leap initiative (which integrates AI into education and training to help people adapt their skills to new demands).
To support learners at all ages, labour markets must be inclusive and future ready. Investing in lifelong learning in digital skills is the key to keeping older workers competitive, but flexible work, occupational health, and age-inclusive workplaces also help maintain employability and well-being.