Germany: Government Finds that Encouraging Older Workers to Stay Increases Business Productivity

Following its decision to raise the national retirement age to 67, the German government has released a report that having employees between the ages of 45 and 67 increases a business's productivity. In the first of semi-annual progress reports, the Ministry of Labour and Social Affairs has released "Fortschrittsreport „Altersgerechte Arbeitswelt“ Ausgabe 1: Entwicklung des Arbeitsmarkts für Ältere" in which it finds, among other things:

• employment rate of 60 to 64 year olds continues to rise, up to 40.8% in 2010 (up from 38.4% in 2009;
• the employment rate among 55-to 64-year-olds has increased since 2000 more in Germany than in most other EU countries, and among 60- to 64-year-olds, the increase in Germany was the strongest in the EU;
• if age-appropriate jobs are available, the productivity of employees between 45 and 50 years increases by as much as two percent.

According to Ursula von der Leyen (Federal Minister of Labor and Social Affairs):

Stimmt der Altersmix, dann steigt nach neuen wissenschaftlichen Studien quer über alle Branchen die Produktivität. Damit ist das Vorurteil widerlegt, dass Jüngere per se leistungsfähiger sind. Das Signal an die Unternehmen ist klar: Wer erfahrene Leistungsträger beschäftigt und Ältere einstellt, kann davon profitieren. Aber auch Flexibilität mit Blick auf die Lebensarbeitszeit wird für Betriebe und Mitarbeiterschaft immer wichtiger.

The Ministry also provides other web pages regarding raising the retirement age to 67.Source: Press Release (February 21, 2012)