The challenge of keeping Japanese older people economically active

Japanese society faces serious problems due to population ageing. Both the number and percentage of people aged 65 years old and over are increasing. The ratio of those aged 65+ was 17.3 per cent in 2000, but the estimate of the National Institute of Population and Social Security Research is that the ratio will become 28.7 per cent in 2025 and will reach 40 per cent in 2050. This article consists of four sections. In the first the characteristics of issues associated with population ageing in Japan are discussed. The actual situations of employment and lives of older workers are introduced. The second section analyses government policies to address the ageing of the population. The Japanese government is trying to address the issue through encouraging older people to work longer. The promotion of efforts to extend longer working lives is discussed. In the third section a rehiring system and two cases of Japanese firms are described. Those enterprises are effectively employing older workers. Their experiences would be interesting for those planning to hire older workers. The last section discusses how to resolve challenges associated with population ageing. It is shown that continuous training is one of the most important ways of keeping older people productive.