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LABOUR-JAPAN: Old Is Gold as Workforce Shrinks

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.