The social impact of Europe’s low birth rate

In a context of an aging population and low birth rate, Europe faces deep demographic challenges that threaten the sustainability of its social and economic systems. The report “Fertility Policy and Practice: A Toolkit for Europe,” developed by Economist Impact in collaboration with Merck, addresses these concerns by offering a comprehensive guide for the creation of fertility support policies. This analysis explores the report’s content and reflects on its potential impact on Europe’s social fabric.

The challenge of low birth rates in Europe

Europe has experienced a steady decline in its birth rate for more than five decades. In 2022, the average fertility rate in the European Union stood at 1.46 children per woman, far below the replacement threshold of 2.1 needed to maintain demographic balance without relying solely on immigration. This decline implies a higher proportion of elderly people and an increasing burden on active generations. As a result, healthcare and pension systems face unprecedented pressures, and economic growth slows due to a lack of young people in the workforce.

The report identifies several reasons why people in Europe have fewer children than they would ideally prefer. Among them are economic factors such as the high costs of raising children and housing, and the difficulties of balancing work and family life. Additionally, cultural changes have shifted social expectations, with a growing emphasis on personal and professional fulfillment, delaying parenthood.

The so-called “fertility gap” — the difference between the desired number of children and the actual number — is particularly pronounced in southern Europe, in countries like Italy, Spain, and Greece. Here, economic constraints and a lack of family support policies discourage larger families.

The Economist Impact report proposes several key policies to reduce the fertility gap and foster a more family-friendly environment. Among the main recommendations are:

• Long-Term thinking: A sustainable family policy strategy that considers long-term effects. Fertility policies do not produce immediate results in the workforce, but they are essential to ensure balanced development in the future.

• Investment in family support services: The accessibility and cost of services such as childcare, parental leave, and flexible working arrangements are fundamental. The report highlights that the main barriers to parenthood are practical, related to balancing work and family life.

• Gender equality: Policies supporting equality in the workplace and home are essential. This approach allows both parents to share childcare responsibilities and reduces the professional penalties many women face when choosing to have children.

• Encouraging research and collaboration: Understanding fertility trends in different countries and collaborating with experts, health professionals, and the community is essential to identifying effective and relevant solutions in each national context.

Implementing these recommendations could have a significant social impact. While fertility policies are not a quick fix, creating a supportive environment can facilitate family formation and improve the overall well-being of society.

The Economist Impact report makes it clear that successful fertility policies require long-term commitment and a comprehensive approach. Implementing a set of policies that range from childcare access to gender equality in the workplace involves the coordination of various public and private actors.