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LABOUR-JAPAN: Old Is Gold as Workforce Shrinks
By Suvendrini Kakuchi
TOKYO, Feb 26, 2007 (IPS) - With Japan’s aging population expected to cause a
severe drop in the national workforce starting this year the government
plans to keep more seniors in employment and stave off having to accept
immigrant workers as a solution.
''Japan is bracing to meet a severe drop in its work force but thinks
immigration is not the answer. Thus, the government is relying on seniors
and increasing female labour, a policy that will work for now but not in
the long run,’’ said Tanshiro Ikushima of ‘Mystar 60’, a recruitment
company for older people.
Latest figures show that the workforce will shrink by as much as one-third
by 2050 to 48.6 million from the current 66 million - and by an average
of 210,000 per year from 2030 - if specific measures are not taken to
keep more seniors in employment. The calculations, made by the ministry of
health, welfare and labour, are based on the current birth rate of 1.26
per woman.
The crisis begins in March, as fiscal 2006 ends and when 2.07 million
workers, belonging to the first wave of baby boomers born in 1947, turn 60
and enter retirement, followed by next batch of around 2.34 million
retirees in March 2008.
Against the gloomy forecast, the government is racing ahead to boost the
supply of domestic workers, especially people over 60 years, to soften the
impact of a labour shortage.
There are new regulations passed by the government such as extension of
mandatory retirement from the regular 60 years to 65 years in most
companies as well as a scheme to be introduced soon when full pensions are
to be paid after the recipient crosses 65 years.
Another step in this direction is government support for a wide array of
training courses and services geared to help seniors find employment.
Naoko Horie, an expert at Mizuho Research Institute, points out that the
Japanese senior labour market carries special characteristics that make it
a reliable source of labour compared to most other countries.
‘’Relying on seniors does not carry a negative image in Japan. Most baby
boomer retirees are spiritually young and want to remain active even after
turning 60 years. And companies want to tap into this energy,’’ she
explained to IPS.
A survey conducted by the government last year showed that as much as 70
percent of people in their fifties want to keep working after hitting 60,
mostly to keep earning till they are eligible to get full pensions.
Another survey carried out by the ministry of education, culture, and
sports that covered 1,851 companies, showed that more than half of
Japanese private companies view older workers as indispensable and have
begun developing new contracts to lure them back.
Advantages of taking on retirees included their knowledge and experience
that gives them a distinct advantage over younger employees who may be
more savvy when it comes to the Internet or digital applications but do
not have the same levels of, say, engineering skills, patience and
loyalty.
Megumi Ishizaka, at the Tokyo Employment Office for seniors, says that
while age actually carried an edge in Japan today, the going is not
exactly easy because work available does not always meet the goals of the
job seeker.
‘’Despite the push to get seniors back in employment, the market is not an
easy one. Most of the offers are from small and medium companies that need
workers but the jobs have tough conditions such as long working hours and
small salaries that are not attractive for older people,’’ she said.
There are more than 5,689 seniors registered for jobs out with Ishizaka’s
office out of which employment could be found for only 1,200 because such
situations as security personnel in restaurant kitchens were shunned by
the older workers.
According to Ikushima, such is a situation is precisely why immigration is
considered a more viable option.
He pointed to the growing number of Japanese retirees who want to spend
time in developing countries to pass on their skills, arguing this is one
more reason why Japan should accept foreigners as a measure of
reciprocity.
''As the population ages, we would need younger people from abroad to work
in areas such nursing and caregiving as well as to work in the
manufacturing sector. Seniors will not be able to fill these positions,’’
he told IPS.
(END)
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