20:57 - 23.06.2026

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June 23, Fineko/abc.az. Germany's labor market is facing a severe contraction as the mass retirement of the "Baby Boomer" generation (born 1946–1964) threatens to create chronic structural labor shortages.

According to ABC.AZ, citing demographic metrics from the German Federal Statistical Office (Destatis), approximately 13.3 million workers will cross the statutory retirement age of 67 by 2040. This volume represents roughly 30% of Germany’s total active labor pool. While older demographic integration has naturally scaled to offset immediate shortages—with workers aged 55 and over now making up 27% of employment—the systemic deficit is forcing urgent policy shifts. Germany's Pension Commission is scheduled to submit a sweeping reform package to Chancellor Friedrich Merz today, which aims to abolish early retirement at 63 and index the statutory retirement age directly to national life expectancy baselines.