Paradigm Changes in Labour Market Policies for Older Workers in Germany — Background Factors and Recent Developments

Abstract

The foreseeable demographic developments in Germany indicate a future decline in the workforce accompanied by a considerable ageing of employees. Both developments will become markedly visible after 2015. In the future, the needs of the German labour market will thus have to be met by a smaller number of essentially older workers. This paper discusses how public awareness of and policies directed at this challenge have changed in recent years. I will first provide a short overview of the most relevant demographic and economic factors. In the second section, I will analyze recent public policy developments that affect older workers. In the third section, I will assess the overall implications, and then move on to summarize my findings in the conclusion.