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HomeLatestJapan's labor crunch is so acute that corporations are hiring 70-year-olds

Japan’s labor crunch is so acute that corporations are hiring 70-year-olds

TOKYO, Aug 15 (qz.com) –
In Japan, an growing old inhabitants has created an enormous labor crunch within the nation. Japan Inc., although, has discovered an answer in the issue itself: Hire older employees.

Last 12 months, 4 in 10 corporations employed individuals aged 70 or extra, Nikkei reported, citing the Ministry of Health, Labor and Welfare.

It’s not a great selection, provided that older employees are extra liable to on-the-job accidents, however choices are few and much between. A weakening yen has made Japan an unattractive place of business for foreigners and in addition pushed Japanese youth in pursuit of higher-paying jobs to go overseas—a double whammy.

Compounding the issue is a low labor participation amongst girls, who are likely to expertise gender pay gaps and a scarcity of assist in advancing their careers.

In 2013, Japan added flexibility to its retirement age of 60 to permit staff to maintain working till they turned 65 in the event that they so wished. The measure drew backlash from corporations that noticed the extra 5 years as a price burden. To work across the provision, some started rehiring employees with new contracts, typically with decrease pay and worse situations, after they turned 60. One of the businesses doing so was Sumitomo Chemical, which made staff to reapply for his or her jobs after they turned 60, however paying them solely 40% to 50% of their wage. But a scarcity of labor is making older staff extra fascinating, and Sumitomo Chemical will progressively raised its retirement age to 65 from the present 60 with full pay.
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