Labour force participation in Germany and in Europe
Lisbon goal to be achieved soon?
Destatis, 02 January 2008
Employment/population ratios in the European Union
During the meeting of the European Council in Lisbon in 2000, the Heads of State or Government of the EU Member States launched a strategy aimed at making the European Union the most competitive and dynamic knowledge-based economy in the world by 2010. A comprehensive list of targets has been drawn up to attain the goal of the Lisbon Strategy, as it is called. The targets concern such areas as the economic framework, employment, research and innovation, social cohesion and the environment. Based on what are called structural indictors, an annual Spring Report examines the progress made in all areas.
70% target
As regards employment, the target is to raise, until 2010, the share of persons in employment among the population of working age (between 15 and 64 years) to 70%. In this context, the annual European labour force survey, which is conducted in all Member States based on a uniform list of questions, serves as the statistical basis for judging the progress made. In Germany, the labour force survey is carried out as part of the microcensus.
Germany in the upper group of middle-ranking countries
As shown by the results of the labour force survey, 67.5% of the German working-age population were in employment in 2006. Hence, the German employment/population ratio (employment rate) was 3.1 percentage points above the EU average of 64.4%. Ranking eleventh out of 27 EU Member States, Germany is in the upper group of middle-ranking countries.
So far, the overall target has been achieved neither at the national nor at the European level. According to the results of the labour force survey, in 2006 a total of 210 million persons aged 15 to 64 years were in employment in the European Union inclusive of Bulgaria and Romania, both of which joined the EU only in January 2007.
Raising the employment rates also for women and for older workers
The Lisbon meeting also specified employment rates for sections of the population that are important from the perspective of labour market policy. Hence the female employment rate is to be raised to a minimum of 60% by 2010. This target was reached in Germany as early as in 2005. In 2006, the German rate amounted to 62.2%. The average rate in the EU amounts to 57.2%, which is still below the target set. The employment rate for persons aged 55 to 64 years is to be raised as well. The target set is to achieve a rate of 50% by 2010. In Germany, the relevant rate amounts to 48.4%. Hence it is only 1.6 percentage points below the target specified. The EU Member States as a whole will have to raise the rate for older workers by 6.5 percentage points to achieve the target.
Four northern European countries in the lead
In line with the Lisbon Strategy, the Member States are not bound to reach the targets on an individual basis. It is however important that the targets will be achieved by the EU as a whole. Nonetheless, the targets serve as a yardstick for measuring the progress made in the individual Member States, too. Four northern European countries – Denmark, the Netherlands, Sweden and the United Kingdom – and also Austria have already achieved overall employment rates that exceed the relevant Lisbon target. Denmark, whose rate amounts to 77.4%, ranks top of the list. The employment rates of seven Member States are below 60%. These countries are Slovakia, Romania, Bulgaria, Italy, Hungary, Malta, and Poland which is in the last position (54.5%).
There is still something to do …
In view of the 2006 employment rate recorded for the EU as a whole and the progress made so far in the majority of the Member States, some work is still to be done. Considering the progress observed since the Lisbon decision was taken, intensified efforts will even be required to reach the targets. Since 2000, the EU average (which then amounted to 62.2%) has increased by 2.2 percentage points. Germany’s contribution to this increase has been below average. However, ’model countries’ such as Denmark, too, have reached not more than a slight increase in their employment rate during the period of observation. Countries such as Bulgaria, Estonia, Spain and Latvia have made a big contribution. Their rates of increase have amounted to seven or more percentage points.
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Labour force participation...
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