Ifo Institute study: Targeted programs aid older unemployed

A study by the Ifo Institute suggests that tailored reintegration programs can effectively help older unemployed individuals return to the workforce. The research analyzes evidence from Austria and the Netherlands to compare the costs and benefits of such initiatives.

In Germany, data from 2025 indicates that nearly 47 percent of unemployed individuals aged 55 and older were long-term unemployed, compared to 34 percent of those aged 25 to 54. Longer periods of unemployment increase the difficulty of returning to work and often lead to premature exit from the labor market.

The study highlights successful models: an Austrian program providing temporary, state-funded positions resulted in a 43 percentage point higher probability of regular employment two years later compared to a control group. In the Netherlands, comprehensive counseling that involved social networks led to state savings of approximately 715 euros per person, while the program cost only 470 euros per person.