BackHow megatrends shape the economy of wellbeing of people in the Baltic Sea Region
Rethinking Participation and Resilience in a Changing Society
The Baltic Sea Region, like much of Europe, is navigating demographic and technological shifts. An ageing population, green and digital transitions, and emerging forms of work are redefining how people participate in the labour market and how education systems must respond.
By 2050, it is projected that one out of four people in the EU will be over 65. This “longevity society” offers not only challenges but significant opportunities: a longevity dividend that can enhance productivity, wellbeing, and intergenerational solidarity if supported by inclusive and adaptive lifelong learning systems. Traditional life patterns of “learn-work-retire” are increasingly replaced by multistage careers, making career adaptability and continuous learning essential.
However, structural barriers persist. Across the OECD, workers aged 55–64 report lower access to training, fewer career progression opportunities, and higher exit rates from the labour force; often linked to health issues, caregiving duties, or perceived lack of value. Mid-to-late career workers are particularly vulnerable to economic shocks and technological displacement, including AI-related task automation. Flexible, modular learning pathways; especially those that include recognition of prior learning and employer-supported upskilling are essential to counter these trends.
Mental health is another pillar of the new policy frontier. Poor mental wellbeing can reduce learning capacity, workforce participation, and social inclusion. Policies addressing stigma, strengthening resilience, and ensuring access to supportive environments are increasingly viewed not just as health interventions, but as economic imperatives.
This is where inner development comes into focus. Fredrik Lindencrona, psychologist and head of research at co-creation at the Inner Development Goals (IDG), highlights the importance of strengthening not just skills, but inner capacities such as empathy, perspective-taking, and systemic thinking. His work supports policymakers and institutions in building the relational, reflective, and strategic capabilities needed to lead in complexity and ensure cross-sectoral cooperation. He stresses that “economies must be seen not only in terms of production or GDP, but as systems that enable people to act well for themselves, others, and the planet.”
Crucially, overcoming these challenges calls for coordinated, cross-sectoral action. The integration of employment services, health systems, and educational institutions into a seamless support network for individuals across their life course is essential for inclusive and sustainable development. Lindencrona echoes this by emphasizing that we need collective intelligence across institutions; the ability to reflect, disagree well, and still move forward together.
The macro-regional level offers a unique platform to catalyse this change. The Baltic Sea Region, with its strong intergovernmental ties and shared demographic trends, is well positioned to become a leader in implementing “economy of wellbeing” principles in practice.
Transnational Cooperation for Wellbeing-Driven Education Reform
Policy Area Education has embraced these megatrends through its flagship initiative, the Economy of Wellbeing of People, developed in cooperation with Policy Area Health. The initiative promotes a shift from sectoral silos to collaborative solutions that strengthen social resilience, educational equity, and long-term labour market participation.
Building on funding from the European Social Fund Plus (ESF+), the initiative maps how key actors across the Baltic Sea Region are addressing challenges related to:
- Ageing and intergenerational dialogue at work
- Lifelong learning and skills development
- Mental health and social isolation
- Cross-sectoral cooperation models
So far, over 50 stakeholders, including public authorities, civil society organisations, trade unions, and academic institutions, have responded to a regional survey identifying needs, barriers, and promising practices. This evidence is now guiding the design of our co-creation workshop at the Annual Forum in the autumn, which will test collaborative methodologies for tackling common challenges.
Moreover, the initiative supports the preparation of national and regional implementation projects, aiming to mainstream wellbeing into policy and institutional frame-works across the region. The ambition is to translate strategic intent into actionable change across all levels of governance.
By embedding wellbeing, equity, and sustainability into the DNA of lifelong learning systems, Policy Area Education is contributing to a more inclusive and forward-looking Baltic Sea Region. This aligns directly with the updated EUSBSR Action Plan and reinforces the Strategy’s relevance in the face of accelerating transformation.
Policy Area Education Coordinators
Securing the Future – Views from the Policy Area Coordinators
This text is originally published in the “Securing the Future – Views from the Policy Area Coordinators” publication. The publication consists of thematically focused articles that are aligned with the Strategy objectives. The texts support informed discussion on topics relevant across the Baltic Sea Region.
Download the full publication here.
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