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Big Firms Hire Back Retiring Employees

by BBelew57 on June 30th, 2007

Japan has found another source of potential workers to make up for its declining work force….the retired.

Major Japanese firms are rehiring more than 50% of employees who have already received their gold watches…that is, those who have reached the official retirement age of 60.

Toyota Motor Corp. retained 56% of its workers.

JFE Steel Corp. rehired 70% of their 60-year old workers.

East Japan Railway continued to employ 70% of their workers as well.

The Law Concerning Stabilization of Employment of Older Persons took effect in 2006. Firms must provide job opportunities for employees up to the age of 65.

Workers over 60 account for about 1.9%

of the combined work force.

When the rehired are added to the new grads and recruited midcareer workers, overall staff of the major firms grew by 3%.

Rehired workers generally get about half the salary they were making at the time of retirement….meaning, companies get more workers for less costs.

Would you like to continue working beyond 60 years of age? 

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POSTED IN: Doing Business in Japan