Positive employment effects of raising the retirement age for women
DI Johannes Berger
Head of the Labour Market and Social Security Research Section
The gradual increase in the statutory retirement age for women in Austria is beginning to have an effect: A recent EcoAustria brief analysis concludes that the reform has led to a significant increase in employment among 60-year-old women. Despite economic weakness, positive labor market effects are evident - a finding that also sheds new light on the debate about unemployment among the elderly.
Increase in employment despite the crisis
Since January 2024, women have been able to retire at the age of 60 instead of 60.5, as was previously the case. Between 2024 and 2033, the retirement age for women will be raised to 65 in six-month increments. According to EcoAustria, the number of employed 60-year-old women more than doubled in 2024 - from around 15,500 in the previous year to over 31,000 in the second half of the year. 85% of the additional women affected were able to take up employment.
Unemployment rises, but to a lesser extent
At the same time, the number of unemployed 60-year-old women (including training participants) rose moderately to around 3,700. This means that the majority of the women affected remain in employment even after postponing retirement.
Reassessment of old-age unemployment necessary
An interesting effect: the unemployment rate for 59-year-old women has fallen noticeably over the same period - while employment has risen at the same time. This shows that higher unemployment rates close to retirement age are less a reflection of a lack of employability among older people, but are rather caused by institutional transition phases. EcoAustria therefore recommends differentiating more clearly between "old-age unemployment" and "unemployment before retirement" in future.
Conclusion: Employment stimulus through reform
According to EcoAustria, the current reform is a "natural experiment" that is already providing relevant findings in the early stages. The retirement age not only has a positive effect on the age group of 60-year-old women, but also promotes employment in the 59-year-old cohort.
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