Generational Disparities and Their Impact on Sectoral Labour Demand

Abstract

This study estimates the economic impacts of demographic changes driven by generational changes on the labour market and business environment in the Slovak Republic and selected European countries (Hungary, Poland, Czech Republic, Germany, France, Italy). It examines how demographic changes influence sectoral labour demand and the number of business entities. The main research questions are: RQ1: How do generational disparities affect sectoral demand? RQ2: How do generational disparities affect the number of entrepreneurs in the labour market? A comparative analysis of statistical data from 2013 to 2023 shows that sectors such as wholesale, retail, industry, and information and communication technology (ICT) face a shortage of skilled labour. To address RQ2, a regression analysis covering the long-term period from 1995 to 2020 is applied. The evaluation of RQ2 is supported by two hypotheses (H). H1: Changes in population development affect the number of enterprises at a statistically significant level. H2: Changes in population development affect the size of companies in a statistically significant variable. The results indicate that demographic trends associated with generational changes are reshaping the labour market structure, with the most significant impact observed in industries with high skill requirements and the segment of small and medium-sized enterprises. These businesses are flexible yet particularly vulnerable to shortages of skilled labour.