Central banks must understand the structural drivers of economic growth to steer monetary conditions appropriately. Population ageing is an important structural driver. Since 2010, more people have retired than young people have joined the workforce, which has weighed on Swiss employment growth. In the future, this development is expected to intensify. Given the current demographic trends, population ageing may well reduce employment growth to half of its historical average. Understanding this phenomenon is key for future monetary policy, as noninflationary potential GDP growth will be affected accordingly unless other factors, such as higher productivity growth, compensate for it.