"Unable to Live on Pension Alone"… More Than Double Increase in Job-Seeking Elderly in Japan

Number of Young Job Seekers Decreases by 100,000 Over 10 Years

In Japan, where labor shortages due to low birth rates are a concern, the number of elderly job seekers has significantly increased. In fact, the figures have surpassed those of young job seekers, prompting Japan to now face new challenges regarding employment for the elderly beyond youth employment.

On the 4th, Nihon Keizai Shimbun (Nikkei) cited data from Japan's public employment security office, Hello Work, reporting that the average number of active job seekers aged 65 and over from January to November 2023 was 256,000, a 2.2-fold increase compared to 10 years ago.

During the same period, the number of active job seekers aged 25 to 29 decreased by 100,000 compared to 10 years ago, recording 196,000. From 2011 to 2018, the highest proportion of job seekers was in the 25 to 29 age group, but the number of elderly job seekers has now surpassed this.

Additionally, the proportion of job seekers aged 65 and over among all job seekers rose by 8 percentage points from 5% ten years ago to 13%. Expanding the range to include those aged 55 and over, the figure surges to one-third of all job seekers.

The trend of continuing to work beyond retirement age is almost unique to Japan worldwide. According to statistics from the Organisation for Economic Co-operation and Development (OECD), the labor force participation rate of Japanese people aged 65 to 69 was 52% of the total population as of last year. This is the highest among 37 countries with available data, compared to 33% in the United States, 26% in the United Kingdom, and 20% in Germany.

Nikkei stated, "The people seeking jobs are gradually shifting to older age groups," noting that at Hello Work offices in Tokyo, more than 100 people aged 65 and over visit the counters dedicated to elderly job seekers daily for consultations. A staff member said, "People in their 70s and 80s also come for job counseling to find work."

A job support seminar for job seekers aged 60 and over promoted by Hello Work. It is advertised with the phrase "Still able to work. Finding jobs for the Platinum Generation." (Photo by Hello Work)

In Japan, the Elderly Employment Stabilization Law has already been implemented to address the issue of elderly employment, mandating employment up to age 65 if desired. It also specifies efforts such as reemployment from age 65 to 70 as needed. However, the number of people entering the labor market after 65 continues to rise. Jobs available for the elderly are mostly limited to simple manual labor, resulting in a mismatch between job seeker demand and supply. As of November last year, the overall employment rate for all ages was 27%, but only 21% for those aged 65 and over.

A staff member at the Ikebukuro branch of Hello Work said, "Office jobs are popular among seniors, but most job openings are for condominium management or cleaning." Therefore, they are implementing measures such as holding seminars three times a month to encourage seniors to consider a wider range of occupations.

The main reason these individuals seek jobs after retirement is economic insecurity. Nikkei cited statistics from the Financial Services Agency of Japan, estimating that at least 20 million yen (approximately 182 million KRW) is needed for retirement funds as of 2019, stating, "Income from pensions alone is insufficient, so economic anxiety inevitably increases."

Meanwhile, there is a positive analysis that utilizing this senior talent can help solve labor shortages. Nikkei reported, "If motivated senior talent is supplied across industries, it is expected to lead to effects such as an increase in potential growth rates."

This content was produced with the assistance of AI translation services.