In spite of the current strong emphasis in all EU countries on means to tackle youth unemployment, the participation of older individuals in the labour market remains a significant policy challenge. This is due to the interplay of the current recession, the ageing of the population and the need to control public welfare spending (pensions, unemployment benefits and social assistance). In this context, the European Social Observatory has started a new European Commission-funded project, called Policies for an Aged Workforce in the EU (PAWEU). The project is coordinated by the Fondazione G.