Older Japanese workers break away from lifetime employment
TOKYO, JAPAN — Older workers in Japan are reportedly exploring fresh job prospects as they break away from the time-honored model of lifetime employment.
According to a survey by Japan’s Ministry of Internal Affairs and Communications, an average of 3.78 million employees aged 45-64 expressed interest in changing jobs in Q1 2023, up 30% from 2018.
In comparison, the total number of prospective job seekers across all age groups escalated by 16% to 9.86 million in 2022.
As companies extend the retirement age or remove compulsory retirement, many middle-aged workers fail to land their desired positions or managerial roles. Consequently, many employees are seeking career paths that align with their preferences.
“When they try to make another attempt at a career, they tend to look at outside companies,” added Ryuichi Okumura at the Mitsubishi Research Institute.
The declining wage disparity between mid-career hires and long-serving employees has also pushed older workers to seek new employment.
According to Takuya Hoshino from the Dai-ichi Life Research Institute, mid-career hire earnings for men and women aged 45-49 climbed to over 70% of long-term employee salaries in 2020.
However, despite these shifts, career changes in Japan remain relatively infrequent, with only 3.2% and 3.5% of workers aged 45-54 and 55-64, respectively, switching careers in Q1 2023.
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