Germany: Employment Rates of Older Workers Significantly Higher in Last Decade

According to the Federal Statistical Office (Destatis), the share of older workers in employment in Germany has been up from 62 per cent in 2012 to almost 72 per cent in 2021. During the same period, the employment rate of older workers in the EU has also increased – from 47 to 60 per cent, AtoZSerwisPlus.com reports.

These rates show that Germany has more older workers of age 55 to 64 in employment than the EU’s average. in addition, other countries with higher employment rates among older workers include Sweden (77 per cent) and Denmark (72 per cent).

“It is however not expected that a higher labour force participation of older people can offset the fact that the younger population is decreasing and that consequently there will be a much smaller labour force in these age groups,” Frank Schüller, labour market expert at the Federal Statistical Office, explains.

The employment rate of older people in Germany and the EU has been attributed to various factors, such as changes in government policies, increased awareness of the benefits of older workers, and changes in society’s attitude towards ageing and work.

Another factor why older workers in Germany remain in employment for longer periods includes the implementation of policies established to encourage these workers to remain in the workforce. So far, the German government has introduced several measures that intend to facilitate working for these employees, such as cutting off working hours and the option to phase in retirement.

In addition to new measures, society is being more accepting of older workers. As the age expectancy is increasing and people are staying healthier, the idea of traditional retirement at the age of 65 years is becoming outdated. On the other hand, many older workers are choosing to remain in the labour market in order to stay active and engaged.