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OLDER WORKERS IN THE GERMAN LABOUR MARKET – 61 Similarly, participation and employment rates for the 55-64 age group will improve by 5 percentage points by 2010, even without further change in actual labour market exit behaviour. The 50% Stockholm employment target could therefore be achieved if progress in the coming few years is at least as large as in the past few years, provided the high level of unemployment is also reduced somewhat. Given the substantial recent reform efforts (see Chapters 3-5), this does not seem impossible.
Participation rates for women show an upward trend ever since 1970 – except for the age group 60-64 – although the increase almost halted for women aged 50-59 during the period 1975-1990, when early retirement was encouraged. 7. Source: National labour force survey. German reunification in 1990 resulted in a sudden drop in the participation rates of older men and a sudden increase in the rates for women up to age 55. Since the mid-1990s, participation rates have been rising for all groups of older workers, despite rather sluggish economic growth.
Population ageing is neither a new nor an unexpected trend but an inherent and unavoidable long-term consequence of socio-economic development. Due to a rapid decline in fertility and mortality rates since 1870, Germany’s population already started to age after around 1920. The further steep decline in AGEING AND EMPLOYMENT POLICIES: GERMANY – ISBN-92-64-012737 © OECD 2005 36 – CHAPTER 1. THE CHALLENGE AHEAD fertility after the postwar baby boom in the late 1950s and early 1960s, however, was unanticipated.