Majority of German Companies Employ Retirees Amid Labor Shortages, Yet Aktivrente Policy Sees Limited Approval

In Germany, a growing number of companies are integrating older employees and retirees into their workforce as a strategy to combat skilled labor shortages, according to the Randstad-ifo HR survey for the first quarter of 2026. About 70% of companies currently employ retirees, with 83% of these workers having been employed by the company prior to retirement. These companies cite knowledge retention (68%) and addressing labor shortages (64%) as primary reasons for hiring retirees.

To accommodate older workers, 38% of businesses have implemented measures such as flexible working models, with 87% of these adopting part-time (58%) and mini-jobs (60%) arrangements. Full-time employment post-retirement remains low, at 25%, with smaller fractions in midi-jobs and freelance roles. Carlotta Köster-Brons of Randstad highlights the importance of retaining employees beyond retirement, noting that 37% of surveyed company workforces are aged over 50, putting organizational expertise at risk.

Despite these efforts, the German government’s Aktivrente initiative, designed to encourage longer workforce participation, has met with mixed reception. Only 36% of HR managers consider it effective against labor shortages, while 28% remain skeptical. The policy is seen as one component of a multifaceted approach that also includes increasing female labor participation and easing bureaucratic barriers to attract foreign skilled workers.

Certain industries, like healthcare, construction, and IT, continue to face significant shortages despite some sectors, such as automotive, facing cutbacks. The quarterly Randstad-ifo HR survey involved between 500 and 1000 HR managers from various industries and company sizes across Germany.

This trend indicates that German companies are increasingly relying on retirees to preserve institutional knowledge and buffer labor deficits, but also underscores the need for broader workforce policy reforms to sustain long-term employment viability.