Older Workers Facing Challenges in the Labor Market

As the average age of the population in Saxony continues to rise, the Employment Agency warns of the difficulties older skilled workers face in finding jobs. “They rarely become unemployed because of their skills and experience, but once they are unemployed, it is difficult for them to re-enter the workforce,” said Klaus-Peter Hansen, head of the Chemnitz Regional Office of the Federal Employment Agency.

At the same time, older workers are becoming increasingly important to the labor market in light of demographic change: According to the Regional Directorate, nearly one in four workers in Saxony is over 55 years old. 

Higher Average Age in Saxony

This proportion is likely to grow in the coming years, according to data from the State Statistical Office. Over the past 15 years, the average age of the population in Saxony has risen by just under ten months to 47.2 years. This makes Saxony one of the federal states with an older-than-average population (national average: 45 years).

According to the Regional Directorate, this trend means that each year, approximately 20,000 more people are leaving the workforce than are being replaced by young people. Employers could therefore alleviate the resulting shortage of skilled workers by giving applicants over the age of 55 more opportunities. 

More People Over 55 Are Unemployed

In Saxony, the employment rate for the 55-to-60 age group is 71.5 percent—the highest in the country. Nevertheless, in light of the rising number of unemployed people over 55, the Regional Directorate sees untapped potential: According to the data, 39,976 people in this age group were registered as unemployed in September. Compared to the previous year, that was more than 1,000 people—even though 80 percent of them are skilled professionals.

“Their experience is actually priceless,” said Hansen. Nevertheless, even in Saxony, it is repeatedly observed that HR managers in companies are reluctant to give older people a chance—even though they are often the same age themselves.