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Trends<br />

Figure 1: Age-specific activity rates for men, 1972, 1991 and 2000<br />

men<br />

100<br />

90<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

Old Länder 1972<br />

New Länder 1991<br />

Old Länder 2000<br />

New Länder 2000<br />

15–19 20–24 25–29 30–34 35–39 40–44 45–49 50–54 55–59 60–64 65+<br />

2002). Although these levels were roughly equivalent to the EU<br />

average, they were well below the levels in Scandinavia, where no<br />

comparable early retirement policy has been operated.<br />

Forecasts anticipate a radical change in the trend as regards the<br />

economic activity of older workers. Reduced pensions when a<br />

pension is taken early (18.6% reduction on retirement at 60), raising<br />

of the minimum age for early retirement from 60 to 62 (with the<br />

exception of the retirement pension for the severely disabled), the<br />

reduction in the pension level as a result of the pensions reform – all<br />

these will have an effect (see section 3.1). Prognos expects the<br />

activity rate among 60 to 65-year-old men and women to increase by<br />

Figure 2: Age-specific activity rates for women, 1972, 1991 and 2000<br />

women<br />

100<br />

90<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

Old Länder 1972<br />

New Länder 1991<br />

Old Länder 2000<br />

New Länder 2000<br />

Source: Prognos 2002: 54<br />

approximately 20%. <strong>The</strong> increase will be somewhat smaller for 55 to<br />

60-year-olds.<br />

However, owing to the demographic trend in particular but also to<br />

the change in behaviour as regards economic activity, by 2020 there<br />

will be a major shift in the age structure of the potentially<br />

economically active population (Figure 3). Initially, this population<br />

will actually increase up until 2015, owing to the rising activity rate<br />

among women and older workers, and then it will decrease slightly<br />

by 2020. <strong>The</strong> average age of the economically active population will<br />

increase from the current figure of 39.6 to 41.7 in 2020. In the<br />

process, the over-55 age group will grow by almost 5 million by 2020.<br />

15–19 20–24 25–29 30–34 35–39 40–44 45–49 50–54 55–59 60–64 65+<br />

Activity rates according to microcensus, percentage of economically active persons in the population of the same age<br />

Source: Prognos 2002: 55<br />

86 Spring 2003 | European Employment Observatory Review

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