Seven per cent of people aged 66 and over are still in employment

Seven per cent of people aged 66 and over are still in employment – and many work in occupations facing skilled-labour shortages.

A DIW study based on the 2022 microcensus examined the employment of older people in Germany. According to the findings, one in 15 people aged 66 or older is still working. Health and education play a decisive role in labour-force participation at older ages.

After reaching the standard retirement age, seven per cent of older people remain in employment, working an average of 19 hours per week. The better their health and the higher their level of education, the more likely they are to continue working. Among people aged 66 to 69 in good or very good health, around one in five is still employed. These are the key results of a recent study by the German Institute for Economic Research (DIW Berlin), conducted by researchers from the Government and Crime, and Labour and Inequality departments, using data from the 2022 microcensus.

“Even beyond the standard retirement age, older people make a significant contribution to the labour market, especially if they are in good health and have a higher level of education,” says study author Johannes Geyer, Deputy Head of the Government Department. Co-author Anna Bindler, Head of the Crime, Labour and Inequality Department, adds: “Whether people continue to work in old age depends not only on legal regulations, but also heavily on individual circumstances.”

Self-employed workers are particularly well represented: 37.4 per cent of employed people over 66 are self-employed, compared with nine per cent among the working population as a whole.

Older workers in shortage occupations

The study also assesses the extent to which older workers are represented in professions classified as suffering from, or at risk of, skilled-labour shortages. Higher labour-force participation among older people is often viewed as one way of addressing these gaps.

According to the analysis, 23 per cent of employed people over 66 work in occupations where labour demand already exceeds supply. This is a similar proportion to that of younger workers. However, older people are somewhat less represented in occupations where a skilled-labour shortage is only anticipated: around 40 per cent of workers under 66 are employed in such occupations, compared with 30 per cent of older workers.

“Greater efforts should be made to ensure that a higher proportion of workers remain in the labour market beyond the standard working age,” says Peter Haan, Head of the State Department. “Health-promotion measures, further education and training even in old age, and reforms in tax and social law can help to achieve this.”

International comparisons suggest further potential. Countries such as Sweden have significantly higher employment rates among older people. “Changes in tax and social-security regulations are also crucial, for example a reform of the mini-job regulation,” says Hermann Buslei. “It is important to create incentives for more employment and longer working hours. This could help increase the relatively low employment rate among older women. In addition, pensioners should receive more support in finding work.”

Source: DIW Berlin