A large share of the world is grappling with the same issues. Populations are aging. Birth rates are falling. Lawmakers are pushing back the retirement age. Older workers are staying in the labor force longer because there aren't enough new entrants to replace them. Labor shortages are shaving points off economic growth. What do these upheavals mean for the international job market? What answers are governments putting forward?
Living longer, working longer?
Thursday, May 22. Denmark's Parliament votes to lift the retirement age from 67 to 70. More precisely, it will rise to 68 within five years and reach 70 by 2040. While international media call it a small 鈥渞evolution,鈥� Denmark's government stresses this is part and parcel of existing policy. In Denmark, the retirement age is indexed to life expectancy. Danes have therefore long internalized the idea of 鈥渓iving longer, working longer.鈥� France's pension reform drew on the same logic, though with more mixed results. Passed amid fierce opposition in 2023, it raises the legal retirement age from 62 to 64, depending on birth year. But the current government's difficulties鈥攁nd continued resistance from part of the public鈥攌eep tensions alive, and some parties still call for the reform to be suspended.
Denmark isn't the only country tying retirement rules to life expectancy. Italy, the Netherlands and Portugal do it too. In 2024, Italy's government proposed allowing civil servants who wish to do so to work until 70. Despite union pushback, the government has held its line and is gradually laying the groundwork for a legal retirement age of 70 for everyone, not just public employees. In the Netherlands, the retirement age will move to 68 by 2040 (from 67 today). In Portugal, the age shifts progressively with life expectancy: currently 66 years and 7 months, it will reach 66 years and 9 months in 2026.
International labor market: working until 70
Germany is also phasing in a higher legal retirement age鈥攗p to 67 instead of 65鈥攆or workers born between 1947 and 1964. The United States shows a similar pattern: people need to work longer to qualify for full benefits. Those born in 1959 currently need to work until 66 years and 10 months; in 2026, anyone born in 1960 or later will need to reach 67.
In Japan, working until 70鈥攁nd beyond鈥攊s not unusual. The full pension age remains 65, but few retire that early. According to Japan's Ministry of Labor, people over 65 account for 13% of the workforce. More than 50% of 65鈥�69-year-olds remain employed, and over 30% of those aged 70鈥�74 still have a job. Even 10% of people over 75 are working. In practice, companies are encouraged to retain employees until 70: Meiji Yasuda Life Insurance (a major insurer), Toyota, Mazda鈥� In 2021, electronics retailer Nojima went further and scrapped the mandatory retirement age altogether. Since late 2023, taxi drivers can work up to 80 in rural areas.
Raising the retirement age: what does it mean for jobs?
Does a higher legal retirement age affect youth employment? Overall unemployment? Are there pathways to foster knowledge transfer between seasoned employees and new hires? A closer look at France, Germany, Japan and the United States.
The baseline
Japan has the highest employment rate among 25鈥�64-year-olds at 79.8%. Germany ranks second (77.7%), ahead of the United States (71.7%) and France (68.9%) (OECD data for Q4 2024, released April 17, 2025). Yet these healthy averages mask deep divides. An OECD report published July 3, 2025, notes that Japan's working-age population shrank by 16% between 1995 (87.3 million) and 2024 (73.7 million). Among those still working, seniors are an ever larger share. Japan is the G7 country where older people stay in work the longest: about 80% of those aged 55鈥�64 are employed, compared with 76.4% in Germany, 65.8% in the U.S., and 61.7% in France. Nearly 30% of Japanese aged 65+ continue to work鈥攆ar ahead of the U.S. (19.2%), Germany (9.1%), and France (4.3%).
In 2023, the OECD estimated Japan's youth (15鈥�24) labor force participation at 49.9%. That's a bit lower than Germany and the U.S. (54% and 56.3%, respectively), but higher than France (42.5%). Still, young people鈥攅specially those with limited or no qualifications鈥攆ace the highest risk of precarious work. Older workers with weak attachment to the labor market face similar risks.
Youth and senior employment: stubborn stereotypes
According to France's Observatoire des in茅galit茅s, both youth and senior unemployment rates have fallen. Yet older jobseekers remain unemployed for longer, and low-skilled young people are more exposed to unemployment. In France, labor force participation among young and older workers lags many other European countries, especially the Nordics. During a period of belt-tightening, many firms focus on 鈥減rofitability.鈥� The narrative goes like this: young hires lack the experience to be productive; seniors have experience but supposedly waning productivity. Either way, companies conclude that both groups 鈥渃ost too much.鈥�
Germany reaches a different conclusion. Unlike France, apprenticeship has long been a pillar of the German social model. Experts argue it helps more young people find jobs and build skills, and it spotlights technical and manual trades often overlooked in favor of white-collar roles. France recognizes this gap and has tried to pivot, taking cues from Germany. According to INSEE, the number of apprentices in France more than doubled between 2017 and 2023.
Japan faces another set of issues. Younger generations push back against their parents' work culture, while low birth rates force older people to work longer. Pensions are often too small to support a comfortable living. In 2019, the government urged workers to save at least 鈧�170,000 by the time they reach age 65鈥攁 target that many find unattainable. A 2020 SMBC Consumer Finance survey found that over 60% of Japanese in their 40s had less than 鈧�10,000 in savings.
The place of seniors in the international job market
A global and chronic labor shortage, falling birth rates, and training challenges鈥攇overnments are juggling policy levers to better match labor supply and demand. The key question: how to foster co-operation, not competition, between younger and older workers so that skills transfer improves and productivity rises?
Two-way knowledge transfer
Companies often emphasize top-down transfer: seasoned staff training fresh hires. But others promote a more circular model, which they say is easier to implement because everyone has something to teach. Digital-native younger workers can train their elders on new technologies; in return, seniors pass on their experience. This circular transfer is said to make intergenerational teamwork smoother. Advocates report clear benefits鈥攊ncluding higher productivity. Seniors are not necessarily on their way out; with ongoing peer-led training, they gain new skills and stay current. Meanwhile, younger employees become operational faster thanks to mentorship from experienced colleagues.
How are seniors integrated at work?
The OECD Employment Outlook 2025, published July 9, 2025, cites U.S. workplace surveys showing many older workers are exposed to physical risks: smoke and fumes, gases, sharp or heavy objects, chemicals, strenuous or repetitive movements, extreme temperatures, noise, vibrations, and more鈥攔isks closely tied to the jobs they do. Many of these are shortage occupations. In healthcare, for instance, the OECD indicates that workers aged 55鈥�64 face over a 60% likelihood of physical risk exposure.
How do sectors like healthcare, construction and engineering integrate seniors? In France, NGE (construction) and Keolis (public transport, Franco-Quebec group) have made senior employment a pillar of their strategy to fight labor shortages. The same logic guides SNCF, EDF, Enedis (electricity distribution) and Elior (contract catering). The watchword: employing seniors strengthens knowledge transfer and ensures continuity of operations.
Tech firms also bet on senior expertise. Intel, IBM, Salesforce, Apple, Microsoft, Cisco, HP and Google all highlight recruiting experienced professionals. Being a senior does not automatically mean lacking digital or high-tech skills. On the contrary, many renowned innovators鈥攏ow older鈥攃ontinue to reshape tech. Their deep expertise gives them a head start and lets them assess novelty through a broader lens than new hires.
Discrimination persists
These corporate initiatives don't erase the reality of enduring age discrimination. Older workers feel it first-hand, even as policymakers claim to promote senior employment. Biases are even stronger against older jobseekers, especially those with long unemployment spells. Employers often equate gaps with 鈥渄oing nothing,鈥� overlooking unpaid work or other activities.
Another hurdle: some employers wrongly believe older workers are more change-averse, less adaptable, and less willing to learn new tools or methods. Some companies let go of highly competent staff for age alone. Yet older unemployed people face steeper barriers than younger ones. The OECD notes that a 50-something who is employed is more likely to stay employed into their 60s, whereas a 50-something jobseeker is more likely to remain unemployed at 60. Raising the retirement age can therefore increase the risk of impoverishment for millions of older people shut out of work. Seniors in precarious jobs (part-time, low-paid, physically demanding conditions) are only marginally better off.
An aging world: how to redefine the international labor market?
United Nations projections suggest major economies could lose 20鈥�50% of their population by 2100. A report by the McKinsey Global Institute finds fertility has fallen across every continent: around 1.8鈥�1.6 children per woman in North and South America and Oceania, 1.4 in Europe, and 1 in East Asia. Only Africa stands apart, with 2.4 to 4.4 children per woman (2023 figures). By 2050, seniors will account for a quarter of global consumers. Many economists support raising retirement ages: if people live longer, they should work longer.
But just as many warn against over-simplification. Careers are not linear or uniform. The global labor market is unequal. You can't raise the legal retirement age without considering the specifics of each sector. Some physically demanding occupations are simply not suitable for seniors.
A global labor market tailored to worker profiles
Redefining the international job market means factoring in both today's and tomorrow's challenges. Beyond 鈥渃ircular鈥� skills transfer, many stakeholders recommend listening more closely to what workers value at different ages.In its 2025 report, the OECD emphasizes several drivers of motivation鈥攁nd thus competitiveness鈥攆or older workers. Job strain shouldn't be the only lens. Studies show seniors prize flexibility and autonomy. They want control over their schedules, greater independence, and recognition for the quality of their work. As a result, certain roles鈥攅specially in information and communication technologies (ICT), management, administration, and engineering鈥攎ay be better aligned with senior profiles. By contrast, assembly-line jobs and roles with little flexibility are harder to adapt. Economists argue that companies should speed up the adaptation of jobs to older profiles. That's one of the conditions for making policies to expand senior employment genuinely effective.
