Pension reform: what will the working population look like in 2036?

Pension reform what will the working population look like in

New consequence of the pension reform adopted in April 2023. According to projections from the National Institute of Statistics and Economic Studies (Insee) published this Thursday, June 30, the active population in France should increase more than expected under the influence of this reform, reaching a peak in 2036. This includes both people with a job, and unemployed people.

This is due in particular to the flagship measure of the reform, which consists in raising the age of opening of rights from 62 to 64 years, with a gradual increase in load from September 2023 to reach 64 years in 2030. accompanied an extension of the minimum duration of long careers, as well as an acceleration of the Touraine reform (2014) aimed at increasing the contribution period from 42 to 43 years for a full pension by 2027 instead of 2035″, details INSEE in its consideration of the measurements for the calculation of the projections.

A peak of 31.2 million assets in 2036

Because of the reform, the active population will also “increase much more rapidly in the coming years”, explains the head of the synthesis and economic situation of the labor market division of INSEE. As a result, the labor force is expected to peak at 31.2 million in 2036 (compared to 30.1 million in 2021). A dynamic that should slow down thereafter, and bring this figure down to 29.8 million in 2070.

By 2070, the active population would still be “increased by around 600,000 people”, compared to projections before the reform, explains Yves Jauneau. The activity rate – that is to say the ratio between the number of assets and the entire population – of 55-69 year olds would therefore be increased by 4.5 points. The effect would be more marked for 60‑64 year olds, for whom the increase in the activity rate would reach 10.9 points. For the 65‑69 age group, the increase in the rate would be less marked (+0.8 points), and would thus stand at 17.8% in 2070. “The activity rate of people between 25 and 54 years old is not modified between the two exercises”, specifies the report.

A quarter of working people will be seniors in 2070

Who says increase in activity of seniors, also mechanically says increase in the share of seniors in the active population: the 55 years and over will constitute 24.8% of it by 2070 (compared to 23.4% before the reform) .

This projection exercise, which will feed into the work of the Pensions Orientation Council (COR), is based on a certain number of assumptions established in the 2022 annual report, in particular demographic, including the question of net migration. “This variant was also an opportunity to increase the projected share of work-study students for 15-24 year olds”, specifies the Institute. INSEE has not measured the impact of these forecasts on employment and unemployment, which are very dependent on the economic situation in the years to come and the public policies that will be implemented.

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