40% of Companies in Japan Feel Excess of Employees in Their 50s and 60s

Jul 07, 2025 | News On Japan

TOKYO - As Japan's labor shortage worsens due to a declining birthrate and aging population, companies are grappling with how to manage employment for older workers.

While many companies are intensifying efforts to attract talent—through improved pay, benefits, and reforms to work styles—around 60% still report feeling a shortage of personnel, according to research by the Persol Research and Consulting Group.

However, when broken down by age group, about 70% of companies say they lack employees in their 20s and 30s, while roughly 40% say they feel an oversupply of workers in their 50s and 60s.

The reasons cited for this surplus are not primarily due to job assignments or headcount, but rather to declining motivation, low productivity, and compensation levels that are viewed as excessive relative to output.

Ironically, these motivation issues often worsen when companies revise employment terms, leading to reduced annual income for older employees.

At the same time, many companies still hope that mid-to-late-career employees can fully leverage their skills and experience, and are seeking ways to better support this generation in contributing more effectively.

Source: FNN

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