Monday, March 21, 2011

Gemany: Europe's First Test of Job Crunch from Aging Workforce

In an article by Larry Elliott and Julia Kollewe in the Guardian, Labor and Social Affairs Minister Ralf Brauksiepe describes how Germany needs to respond to the loss of 5 million workers over the next 15 years as it becomes Europe's first and biggest test of the problems caused by an ageing and declining population, saying that a longer working life and an influx of skilled workers from overseas were the answer to the demographic time bomb.

Since lifting restrictions on labor mobility from EU member states in eastern Europe will lead only to an extra 100,000 workers over the coming years, the phased changes in retirement age between 2012 and 2029, when 67 which will become the statutory retirement age, is most important.
"It must be clear to people that working longer than the age of 65 must be the rule," Brauksiepe said. "I am convinced that in 20 years people won't understand how people were opposed to the enlargement of the working life in 2011."
Source: Guardian"Germany faces up to problem of ageing workforce" (March 17, 2011)

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