Although there are only few immediate effects of demographic development, serious changes will take place which will c ause a n enormous impact on society and employment. Demographic change shows — contrary to the demand for employees — a stable background and allows long-term projections to be made. Ageing of the German population and a reduction in the potential labour force is evident. It is uncertain, however, whether this can be balanced by immigration. The effects of a shrinking population on society and on the labour market is also unclear. Nevertheless, recommendations can be made to alleviate these demographic problems, such as company and individual age management, and the modification of legal and social standards which are no longer appropriate.