In 2023, 38.9% of people aged 60 to 64 were employed, which was 2.7 percentage points higher than in 2022, according to data from the Insee. This trend has been increasing steadily since the beginning of the 21st century, with a particularly noticeable increase in the past twelve months. This is good news for the outgoing government, as it brings them closer to their goal of full employment for this age group. The last time employment rates for this age group were this high was in 1975 during Valéry Giscard d’Estaing’s presidency, when 40.5% of 60-64 year-olds were employed. The decline in employment rates over the following years was due to factors such as high unemployment rates, early retirement programs, and changes in retirement age legislation.
The decline in employment rates continued for over a quarter of a century, reaching a low of 10.8% in 2001. However, in recent years, the trend has reversed, with the implementation of laws in 2003, 2010, and 2014 that encouraged people to continue working beyond the age of 60. One of the key factors contributing to this upward trend is the 2014 law which increased the required number of contribution years for full pension benefits, gradually increasing to 172 quarters over generations. This has led more individuals to stay in the workforce longer, sometimes even past the retirement age. The impact of the 2023 reform, which raised the pension eligibility age to 64, has had a marginal effect on the increase in senior employment rates, as the changes have only affected a relatively small number of individuals so far.
According to expert Bertrand Martinot, the main reason for the increase in senior employment rates is the continued impact of the 2014 law, rather than the 2023 reform. This legislation has fundamentally changed the retirement landscape, motivating individuals to work longer and accumulate more years of contributions before retiring. Additionally, the needs of businesses for skilled labor have also played a role in the increase in senior employment rates. With challenges in finding qualified workers to fill positions, companies are more likely to retain older employees or hire individuals over the age of sixty. However, France still lags behind countries like Germany, Sweden, and Finland in terms of senior employment rates.
Overall, the steady increase in senior employment rates in France is a positive trend, reflecting changes in retirement legislation and the evolving needs of the labor market. The gradual shift towards longer working careers and higher retirement ages has led to more individuals staying in the workforce past the age of sixty. This has been driven by a combination of legislative changes and economic factors, such as the needs of businesses for experienced workers. While the 2023 reform has played a role in further encouraging senior employment, the main driver of this trend remains the 2014 law which increased the required contribution years for full pension benefits. France still has room for improvement to reach the employment rates of other European countries, but the current trajectory is promising for the future of senior workforce participation.
