We were pleased to present our research at the 21st EUROFRAME Conference on Economic Policy Issues in the European Union, focused this year on “The Future of Labour.” The event provided a timely and important platform to address two transformative forces reshaping European labor markets: population aging and the accelerating impact of artificial intelligence.

Our findings reveal that an aging society can actually reduce unemployment due to a combination of compositional shifts in the workforce and behavioral changes in labor market participation. Moreover, as the labor market evolves, the cost of stabilizing inflation declines, and optimal monetary policy tends to adopt a more hawkish stance. These insights have important implications as policymakers confront the dual challenge of demographic change and technological disruption.

We’re grateful to the EUROFRAME community for the thoughtful discussion, and we’re excited to deepen our research on how demographic and technological transformations will shape the future of work—and the policy frameworks that support it.