Adjusting the retirement age to rising life expectancy is a controversial, but effective measure to increase older workers’ labour force participation and thus counteract demographic change. Immigration can also help to dampen or delay the demographic decline of the workforce.
The first oil price shock together with a substantial increase in the gold price initiated an inflation spiral and financial conditions became less stable with inflation rising to double-digit levels from 1974. Growth in manufacturing slowed to 3,4 per cent per annum, as momentum could not be sustained given the more uncertain economic environment and the shortages of highly skilled people.