Hello Work employment center in Ikebukuro ward, Tokyo has added a counter specifically for elderly workers due to growing demand.
“I want to work until I’m 70,” said the 66-year-old man who came to fill out the application. “Staying at home all the time makes me feel insecure and unhealthy.”
He retired last November and is looking for something new to do. Japanese government data shows that the number of people over 65 looking for work has doubled in the past 10 years.
This trend poses challenges for a shrinking labor market.
Many Japanese people over 65 are still participating in the labor market. Photo: Nikkei Asia
Some seniors need income, but others just want to keep working. At Hello Work, about 100 people come to the consultation desk every day, many of them in their 70s and 80s. This has been happening since 2020. They are looking for full-time instead of part-time jobs.
Job seekers are now outside the traditional retirement age. Comparing the number of job seekers in 2023 to 10 years ago, the 25-29 age group fell from 196,000 to 100,000 while the 65-plus age group increased from 140,000 to 256,000.
The proportion of job seekers aged 65 and over is 13%, up 5 percentage points from 2013. The group aged 55 and over accounts for one-third of the total number of job seekers.
Japan's aging population is seen as a factor, along with changes to labor laws. Companies are required to hire employees up to 65, but those aged 65-70 are only encouraged to work.
Some seniors who want to continue working have to find opportunities in other industries. As a result, the rate of successful job search among seniors is often low, at 21% according to data in November 2023.
"They prefer office work but often have to take on cleaning or apartment management jobs," said a Hello Work representative.
Three times a month, the unit holds workshops for seniors to encourage them to consider job opportunities in a variety of industries.
In addition, some companies are facing a prolonged labor shortage and have recruited more elderly people.
Recruitment services firm Staff Service Holdings breaks down the healthcare sector into 48 jobs, including assisting patients with mobility, feeding, bathing and hygiene. It has expanded opportunities for people without experience in the healthcare industry.
The number of seniors working in healthcare through the company's services has tripled in four years.
The 2022 Organization for Economic Cooperation and Development survey found that Japan had 52% of its population aged 65-69 participating in the labor market, the highest among 37 countries with data. The rate was 33% in the US, 26% in the UK and 20% in Germany.
In the 70-74 age group still working, Japan has a rate of 34%, second only to Korea with 41%.
In 2019, the Japanese Financial Services Agency estimated the amount of money needed for retirement in the country to be $139,000.
Ngoc Ngan (According to Nikkei )
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