The German government is working on a package of measures that would make pushing back retirement and working as a parent more attractive in a bid to boost the economy, Chancellor Olaf Scholz said on Monday at an industry event.

"We are currently negotiating a dynamisation package, among other things to expand the labour supply in Germany: By making voluntarily working longer much more attractive and by doing more to make it easier for parents to work," said Scholz.

"But also by increasing work incentives for everyone else, for example through tax incentives," he added.

Germany, like industrialised countries around the world, is facing deep labour shortages, particularly in skilled high-growth sectors.

Official German estimates suggest the country as a whole will be short of 7 million skilled workers by 2035, compared with a labour force of around 46 million.

(Writing by Miranda Murray)