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In OECD (2003a), mobilisable labour resources are defined as the sum of excess inactivity and excess unemployment, both relative to international benchmarks. Excess inactivity is defined as any excess in the country's inactivity rate as compared with the inactivity rate of the third-best performing countries. Excess unemployment is defined as any excess in the country's unemployment rate above 5% of the labour force. Youth enrolled in school were not included in the calculation of excess inactivity or excess unemployment, even if they were classified as inactive or unemployed in the national labour force survey.

5 The untapped resources are a result of excess inactivity, 69% of the total being attributable to excess inactivity of older workers. This is the highest share attributable to this age group across the entire OECD, significantly higher than the 46% unweighted OECD average and the 27% population-weighted average. This reinforces the argument that the reduction of early retirement is a key labour market issue in Austria. At the same time, while many OECD countries have succeeded in reversing the declining trend in older workers’ participation rates over the past decade, gains in those rates in Austria were rather mild given the low initial level in 1995.

G. a twenty-fold increase in the number of people aged 85 and over between 1961 and 2050 – and, consequently, a prolongation of the retirement phase. AGEING AND EMPLOYMENT POLICIES: AUSTRIA – ISBN-92-64-01008-4 © OECD 2005 CHAPTER 1. e. 3, Panel A): from 25% in 2000 to 37% in 2025 and further to 55% in 2050. In the coming two decades, the additional economic burden on the working-age population stemming from the growing size of the retired population is partly counterbalanced by the shrinking size of the population aged less than 20 years.

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