As Japan’s population ages, senior employment in Japan (aged 60 and above) is steadily increasing. According to a report by the Japan Business Federation, the employment
rate for individuals aged 65 and older in Japan reached 25.2% in 2022, notably higher than that of other countries, such as the United States (18.6%) and the United Kingdom
(10.9%).
Surveys indicate that approximately 80% of Japanese workers want to continue working after retirement. Of these, around 70% prefer staying with their previous employer. This
trend has thus seen senior employment in Japan significantly rise, especially over the past decade.
Challenges remain, however. By law, pensions are reduced once a person reaches the age of 60 when their combined pension and salary exceeds a threshold. Many companies
set wages to ensure pension payments are unaffected but this inevitably results in a reduced salary for seniors, even when they are doing the same work. As a result, motivation
among senior workers has taken a dip.
Senior workers now make up the second highest percentage of worker cohorts changing jobs, following those in their 30s, according to research by PERSOL RESEARCH AND
CONSULTING. A growing number of those in the category cite “dissatisfaction with salary” as their primary reason for seeking new employment.
At the same time, Japan is grappling with a rapidly declining birthrate, which has exacerbated the challenge for many companies in securing adequate human resources. In response,
efforts are underway to improve the working environment for experienced senior employees.
The following initiatives aim to link senior employment with workforce shortages, increase job satisfaction among seniors and help meet employers’ demands.
