The first implication of this trend for economic policy is obvious. To counteract the decrease in the number of hours worked, we need measures that raise Germany’s labour force participation. In Germany, reserves for this are most likely to be found among the elderly and people with family commitments.
Measures aimed at improving the work-life balance are therefore a step in the right direction in terms of both social and economic policy. Looking at the elderly population, the decision made a few years ago to gradually raise the retirement age to 67 also helped to keep people in this age group in work for longer.