Day of Older Persons: new high for older employees subject to social security contributions

In Germany, the number of employees aged between 55 and the normal pension age limit who are subject to social security contributions has increased significantly for more than ten years. Their number peaked in December 2023 and has almost tripled since December 2000.

26 Sep 2024 | Press release no.40

Highest ever number of older workers

In December 2023, almost 8 million people aged between 55 and the normal pension age limit were in employment subject to social security contributions. This is the highest number in over 20 years. In December 2013, the figure was 4.8 million, and in December 2003, 2.6 million. Their employment rate rose to 59 percent in December 2023, 10 years earlier it was 14 percentage points lower, at 45 percent. For the working age population, the employment rate rose by 7 percentage points over the same period, from 56 to 63 percent.

Baby boomers contribute to good development

This positive development in the employment rate is due, among other things, to demographic change, but also to the higher retirement age and the increased propensity of older people to work. The “baby boomers”, i.e. those born during the surge in births in the 1960s, are increasingly found in the group of over-55s up to the normal age limit.

Everyone is needed

Andrea Nahles, CEO of BA, emphasises: “To secure skilled labour, we need every clever head and every capable hand. That is why, despite the good employment rate, it is important that companies also give older people good opportunities on the labour market. Older employees often bring valuable skills and, above all, a lot of experience – this can bring competitive advantages and make a real difference.”

Challenges remain

Despite the good news, challenges persist, because when it comes to unemployment, the opportunities and risks relating to older people are usually very different from those of younger people. After all, once they become unemployed, they have fewer chances of getting out of unemployment.  Continuing vocational training is also an option for integrating older unemployed people into employment. The BA can support employers in further training their older employees, but also with recruiting new older employees, for example by means of a higher integration subsidy.

Figures and data on older people in the labour market (available in German) can be found in the Federal Employment Agency of Germany statistics.