Hiroshi Suzuki had a successful career in which he traveled the world as an engineer. Then at 65, he retired. It did not last long. In the ...
Hiroshi Suzuki had a successful career in which he traveled the world as an engineer. Then at 65, he retired. It did not last long. In the past seven years, Suzuki, 72, was a nursing assistant in the area of Tokyo and the year is far from certain retirement.
Economists say that if Japan wants its worsening labor shortage, to facilitate a lot more people like Suzuki, which is the standard work of 70 years required. Although it has the oldest population in the world, not enough work for older people in good health to help the country, they say. The reasons: the company's policy, work culture and a history of rigid seniority rules that go by providing a warning to aging economies towards older workers, especially in Europe and the US
Hiroshi Suzuki, 72, works in a nursing home in Tokyo.
Photographer: Yuya Shino / Bloomberg
"People aged 70 can still work. There are many things you can do, as long as you are still healthy," Suzuki, who was a designer and engineer for electric furnace manufacturers and is now working in a rest home race for 21 treatments Co. said, one of the few Japanese companies that have abolished the age of mandatory retirement. "There is no need to think about retirement until age 80"
Suzuki is one of the largest group of people aged 65 years in the world; a total of more than $ 33 million, more than one representative a quarter of the Japanese population. With a longer life expectancy in the world - in 2050 women in the country, on average, live longer than 90 years - and a low birth rate increases the population of working age.
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Japan's demographic situation is so extreme that, although the highest proportion of people working more in the developed world has, according to the Organisation for Economic Co-operation and Development, not enough to curb the shortage of labor prime. The number of workers over 65 has 21.7 percent of the population increase in this age group to 7.3 million in 2015, according Data from the statistical office.
Worsening labor shortage in Japan is also high: it is estimated that the number of employees to refuse to 56 million by 2030 from 64 million in 2014. This forecast Japan Institute of Labour and Education, a group linked to the government will be based on conditions that do not change the economy and the employment rate. In order to avoid a shortage of this type, must reach the country innovative to attract the elderly in the labor market policy.
against
However, Japan's corporate structure is still against the widespread use of older workers. Although some companies have introduced pay for performance, away from a seniority system that age is an important factor, and the size of the race ends for many employees aged 60 or older. mandatory retirement continues in many companies, although there is no official retirement age in Japan.
"People in Japan have a long life and good health, and laws and company policies in the country is not held on the use of their longevity, with respect," said Florian Kohlbacher, associate professor of Campus Tokyo University and director of the Temple Economist corporate network for North Asia , "60 years, it is still very, very young in Japan. If you want to deal with this problem, not only can people work longer, you may need to rethink the entire staff system in Japan."
The recent developments will not do much to alleviate the labor shortage as the percentage of older people in the labor declines markedly as they age, said Robert Feldman, chief economist at Morgan Stanley MUFG Securities Co. in Tokyo. It is estimated that the participation rate in Japan for men aged 65-69 is 54 per cent and for women 32 per cent - good numbers compared to other major economies. For men over 70 fell 20.3 per cent and for women in this age group, it drops to 9.3 percent.
older workers who have jobs to make a dent in the crisis of work, Feldman said "would need much more." "The increased stake by the change in the proportion of the population Offset" is the population of Japan is aging so fast that more people the staff to leave, as a higher proportion of senior citizens.
Changing the rules
The government in April 2013, the rules changed employers to require that all workers keep who want to stay up to the age of 65 in such a system, most companies have in essence the workers at 60 retire and lower back a policy of "continuous employment" with a lower wage -. Wages often much lower This is less costly than increasing the retirement age or the removal of a mandatory pension system, two other options that companies have.
"Japan, the phase occurs, the workers more money than to use the country's population, has aging," said Ryuichi Okumura, a researcher at Mitsubishi Research Institute Inc. in Tokyo. "Japan could offer a glimmer of a solution to other nations as a test bed for the use of the highest in the workplace and to make them active in various sectors of society."
Many people have found, want to continue working after mandatory retirement will not work to stay active - they need money. The Government of Japan is gradually increasing the age of 60 is present in the people for a pension to 65, many will leave with a difference. Moreover, retirees on fixed incomes are more vulnerable to the vagaries of the economy and many have the recent increase in VAT in April 2014 severely affected.
Kudo Sonoe
Photographer: Yuya Shino / Bloomberg
Sonoe Kudo, 65, who works in a nursing home in Tokyo, led by 21 Care, said he wants to work in more than 70 years, as long as good health. With living expenses and long-term care premium, which can be difficult to make the ends meet at a reduced pension. "Older people can not really live for pensions," he said.
retirement
About 81 percent of Japanese companies continue to set the retirement age at 60 years Last Survey of the Ministry of Labour of Japan showed that only 3 percent of the company, which has abolished the pension plan and 16 percent, raised the retirement age, while more than 80 percent for the system chosen of continuous employment.
Among the employees who work in companies that need to retire at the age of 60, more than 80 percent were reinstated or expand their use, according to the survey. But often this continuity at work means a pay cut. The average annual income, including the payment of pensions, the workers who are full-time in their early 60s work required was ¥ 3,800,000 ($ 38,000) in a Survey of the Japan Institute of Labour and Education. The survey found that the wages of the average worker 61 years has been about 27 percent lower than it was not long before the staff turned 60th
Another study showed that the average monthly Wages for male workers in full-time in Japan aged 60-64 was 292,000, ¥ 30 per cent less than the age group 55-59 of ¥ 412,000 after 2015 data from the Ministry of Labour.
"Right now, many companies have a strategy for protecting the assumption - simply respond to regulatory changes in the employment system," Okumura said. "Companies need to move to the use of older workers as an important part of their workforce a more aggressive strategy."
productivity output
One reason that many Japanese companies are reluctant to older workers to keep in key positions that they are more expensive than younger workers, such as age remains an important factor in the wages in Japan to determine. Feldman says that, if the productivity of Japanese older workers improves, companies instead would keep pushing.
He says his "crazy wild y- proposal" is to reduce the minimum retirement age to 40 in Japan, to think that "if the company failed to follow after 40 years, you must keep their knowledge day."
Also said that the high percentage of companies that workers adjust to lower wages by 60 highlights another problem in Japan again - lack of labor mobility. "Basically, what is happening here is that these people are not enough to get another mobile user so that they see what they can get" from his current employer, he said.
other approaches
Daiwa House Industry Co., the largest home builder in Japan decided to come up with another system. It is one of the few Japanese companies raised the mandatory retirement age, 65, and has been allowed to make more than 65 years the system established to work as contract staff - no age limit. It was much appreciated.
"While the eligibility age to occupational pension slowly pushes, we believe that it is our corporate responsibility is to consider the life plans of our employees in the future," said Yoshio Saeki Head of HR at Daiwa House. "We are trying to increase the options for workers."
21 maintenance, a maintenance service, the system of mandatory retirement abolished in April 2014. The proportion of the total workforce of over 60 employees to 16.6 percent from 11 percent 5 increases, the company said. The oldest employee is an assistant of 86 years at home.
Taira Yoda, 64, president of attention 21 said mandatory retirement of the company has been removed because it is in an industry with a lack of meaningful work, and wants to give employees the option to earn steady income when they are higher.
"We can continue to the ability of older workers to develop. They have the ability to do more," Yoda said. "If Japanese companies can do, their expertise can be applied to other countries, an aging population over."
