Almost 90 percent of people between the ages of 25 and 59 are employed in Germany. The proportion is lower in the younger and older age groups – even if it were to increase, this would not compensate for the retiring cohorts.
In the past year, 87 percent of 25 to 59 year olds were employed. This was announced by the Federal Statistical Office on Thursday. This means that participation in the labor market in this age group is “already at a very high level”.
The proportion of men in employment was even 92 percent, and 83 percent for women. Almost three out of four people aged 20 to 24 were active in the labor market, compared to two thirds of those aged 60 to 64. “Although the labor supply could still be expanded through greater participation in the labor market by younger and older age groups and by women, the demographic effect could not be completely offset in this way,” emphasized the statisticians.
The leading economic research institutes also fear this in their spring forecast for the federal government. The number of people in employment is therefore likely to rise from around 45.6 million last year to around 46.0 million in the coming year. After that, according to the Kiel Institute for the World Economy (IfW), more people are likely to retire than new ones because the baby boomers are retiring.
On average, the German labor market would then lose almost 200,000 workers per year. Although around 350,000 people are likely to immigrate from abroad every year, the working-age population is shrinking. Bringing more people into the labor market – for example through better childcare or more flexible working time models – could dampen the decline in the labor force, but not stop it.
In view of the need for skilled workers, the scope of employment is also coming into focus. In 2022, 30 percent of employees were working part-time. While almost every second woman (49 percent) did this, the part-time rate among men was only 13 percent. Part-time employment has thus increased slightly since 2010: At that time, 46 percent of women and nine percent of men worked part-time.
“Activating part-time employees to work more is one way of tapping into additional potential on the labor market,” according to the statistics office. “At the same time, part-time employment can make it possible to take up employment, for example because in this way the compatibility of work and family can be better guaranteed or even guaranteed at all.”