In many advanced economies and in the euro area in particular, growth in hours worked per capita looks set to shrink, in the long run, due to adverse demographics and a falling working age population.
Using OECD population projections and holding labour productivity constant, by 2050 the decline in output per head induced by ageing would be 14% in Germany, 16% in Italy and 22% in Spain. A continuation of current rates of labour productivity growth in the euro area would just about offset that scenario. But this would mean running just to stand still.