Bringing female participation rates in the workforce up to 60 per cent would add 10 million people to the EU labour market and help solve shortages, Ms Marie Donnelly, a senior member of the European Commission directorate on employment and social affairs, told the IBEC conference on human resource management yesterday.

Although this seemed a modest target - with participation rates already more than 50 per cent in 10 member-states - it would not happen while women were paid an average of 25 per cent less than men.

Mr Gerard O'Neill of Amβrach Consulting queried whether the 60 per cent target for female labour participation could be met. While work played an increasing role in most people's lives, research by Amβrach suggested many women were reassessing the cost benefits of working. There was a debate going on about the future relationship between home and work, and increasing numbers would opt out without more flexible work arrangements.

Ms Donnelly warned employers that with an ageing workforce they could no longer rely on a stream of young entrants who would bring new skills with them. Retraining for and retention of older workers would become an increasing human resources factor. The days when EU governments would help fund early retirement to help firms restructure were over.

Member-states facing the "dilemma" of sanctioning more liberal immigration policies to meet labour needs were opting instead to encourage more women to join the workforce. For this to work, however, fundamental changes in how we organised our society would be required.