The number of additional people wanting to work overwhelmed the longer-term effects of population ageing, which, all else equal, would have been expected to have removed around half a million people from the labour force (Chart 10). This expansion of the workforce is being driven mainly by women and older workers. Before the Great Recession, between 46% and 83% of those in the 50- to 64-year-old age cohort were active. Now it is between 60% and 89% (Table 1). In part this reflects a continuation of past trends within age cohorts, but it goes much further. 8 The greater risks and financial burdens that many are now facing are likely to be important drivers of the recent increase in the labour force. Changes to pension arrangements have encouraged people to work longer. 9 State pension ages are rising, and the default retirement age has been abolished. 10  6  The average of European Commission, OECD and IMF estimates of structural unemployment have increased from 8.8% in 2008 to 10.3% in 2013, reported in Draghi, M (2014), “Unemployment in the euro area”, Speech at the annual central bank symposium in Jackson Hole, August. 7  There is evidence of there having been an increase in skills mismatch both in the rightward shift of the euroarea Beveridge curve and as indicated by skills mismatch indices. See Draghi (ibid.).
To date, only a few countries have conducted their Proliferation Financing Risk Assessment (PFRA), for example, Cayman Islands, Gibraltar, Latvia, Portugal, and the United States,2 as well as the recent assessments by Malaysia and the United Kingdom3 in 2021. To further facilitate APG members, the Workshop this week will discuss the strategies and best practices for conducting the PFRA including challenges faced by the public and private sectors as well as sharing of latest trends and typologies on PF. My fourth and final observation is on the importance of greater understanding of risk associated with AML/CFT/CPF measures which will help us mitigate any unintended consequences from such measures. The FATF’s recent project on mitigating unintended consequences of its Standards4 has found financial exclusion and de-risking as among the consequences which are often observed from the incorrect understanding and implementation of AML/CFT/CPF measures. Taking pre-emptive steps to better understand the risks will help us avoid those potential consequences while supporting access to financial services and other developmental agendas which are equally important. Conclusion I would like to encourage participants and delegates to take the opportunity to learn the latest developments and perspectives from various experts during the Workshop this week. I hope that participants will be able to draw new insights, consider relevant initiatives and emulate best practices in your respective jurisdictions. I also note that a diverse mix of participants including from the private sector has registered for the Workshop which no doubt will enrich the discourse this week.