Raising the rate of employment among the over-55s is essential both to guarantee the financial viability of the legal pension system and to reinforce the economy’s medium- and long-term growth potential. Quite paradoxically, the low rate of employment can be regarded as a pool of unused potential.
This has implications for future economic growth and the pressures on government budgets. This immigration has also boosted the nation's human capital. Ageing and Labour Force Participation I would now like to turn to some of the implications for labour force participation of our changing demographics. While we remain a relatively young country, we are still ageing.