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Proposals to lower the retirement age in Germany could have a positive impact on the temporary staffing market, according to Michael Hüther, Director of the Germany Economic Institute in Cologne (IW).
Under the bill, employees who contribute to the German pension insurance scheme for 45 years may retire on a full pension at the age of 63 instead of 65. The bill fulfils a campaign pledge by Angela Merkel’s conservatives and their coalition ally, the left-leaning Social Democrats, to review and amend a phased increase in the retirement age from 65 to 67 that was enacted in 2007, reports The Wall Street Journal.
The bill is expected to sail through Parliament, where the coalition enjoys a comfortable majority.
Should the bill be accepted by Parliament, the resulting exodus of employees eligible for early retirement could leave many employers scrambling for workers.
In an interview with the newspaper BILD, Mr Hüther speculated: “To offset the decline in the workforce in the short term, many companies will rely on the services of temporary recruitment firms.”