Digital Disc, Berlin. As per a study published by the German Economic Institute (IW), Germany’s baby boomer generation retires. The country will suffer a loss of billions of euros. Baby boomer is a term used to describe a person born between 1946 and 1964. The Baby Boomer generation makes up a substantial portion of the world’s population, especially in developed countries.
The Xinhua news agency cited the study as saying that Germany’s economy will change significantly over the next 15 years as most baby boomers are no longer working or will not. The labor market will lose more than 5 million workers. Assuming the policies remain largely unchanged, according to the study. Per capita real income in Germany will increase by an average of about one percent per year until 2035.
It states that day care for children in schools and other facilities in Germany should be reformed so that more parents can work full-time rather than part-time, and immigration could also help address the shortage of skilled workers . The study found that better conditions for private investment, improved public infrastructure and good market access opportunities for innovative companies would also be needed.
IW director Michael Heuther said companies can do their homework by asking the future federal government to respond to shrinking populations. Business as usual destroys prosperity for all and is not in the interest of politics.