Japan is at the forefront of tackling workforce challenges related to its aging population. By 2060, nearly 40% of Japan's population will be over 65, necessitating policies that enable senior employment. The Ministry of Health, Labour and Welfare (MHLW) has introduced various initiatives to ensure older adults remain productive members of society.

The Growing Need for Senior Employment

With a declining birth rate and increasing life expectancy, Japan faces a shrinking workforce. Encouraging older adults to continue working is essential to maintaining economic stability and easing pressure on public pension systems.

Legislative Framework

To support senior employment, Japan has implemented legal reforms through the Act on Stabilization of Employment of Elderly Persons. Companies are encouraged to adopt one of the following measures:

1. Abolish the mandatory retirement age
2. Raise the retirement age
3. Introduce continuous employment systems

New Requirement from April 2025

Starting April 2025, all Japanese companies will be required to ensure that their employees remain employed until the age of 65. This regulation strengthens previous efforts and underscores the government's commitment to senior workforce participation.

Employment Preferences Among Older Adults

Surveys reveal that a significant majority of Japanese citizens aged 60 and above wish to continue working beyond retirement age. Their reasons range from financial security to the desire to stay active and socially connected.

Corporate Adaptation

Businesses across Japan are responding by offering:

1. Reemployment programs
2. Flexible working hours
3. Opportunities for skill development

Some companies have abolished retirement age policies entirely, especially in sectors where experienced workers are highly valued.

Moving Toward Employment Until 70

While employment until 65 becomes mandatory in 2025, Japan is also promoting continuous employment until age 70. Though not yet legally required, companies are encouraged to provide options such as:

1. Contract-based work
2. Entrepreneurship support

Conclusion

Japan’s approach to senior employment combines legislative action, financial incentives, and cultural change. The new 2025 requirement highlights a nationwide effort to build a resilient, inclusive labor market. As Japan continues to refine its strategies, it serves as a model for other aging societies around the world.