Changes in senior workers as tracked by surveys over time

Release Date 12/11/2023

※This article is a machine translation.

The number of working seniors is rising. Over the last decade, the percentage of seniors still working has climbed dramatically with 73.0 percent of those between 60 and 64 years of age and 50.8 percent of those between 65 and 69 years of age working in 2022.*1 One reason for this can be found in the mandating of efforts on the part of companies to ensure that there are opportunities for workers to remain employed until they are 70 years of age. This took place when the revised Act on the Stabilization of the Employment of Elderly Persons (“Work-Until-70 Act”) came into force in April 2021. There are also changes in attitudes about work among seniors. More and more people continue to work because of the monetary burden that a long post-retirement life imposes on people and the need to maintain good health.
How has the profile of working seniors changed in response to this rising rate of employment in recent years? We would like to highlight data on senior workers between 60 and 69 years of age to examine what is going on based on fixed-point surveys on employment and growth for 10,000 working individuals, which we have administered each year since 2017.

※1 From the Ministry of Health, Labor and Welfare's “Labour Force Survey

The proportion of employed senior workers is increasing
The senior workers themselves have not changed their answer to the question of ”how old they want to work until
The reasons for changing jobs have changed from contract expiration to dissatisfaction with pay
What is important for the well-being of senior workers and their success in the workplace
Summary

The proportion of employed senior workers is increasing

Looking at the external changes in senior workers (aged 60-69) who are employed, there were few changes in working hours, annual income or the distribution of occupations between 2017 and 2023, but there were changes in employment status.

Looking at Figure 1, we can see that the proportion of “company employees (full-time)” increased in the early 60s, while the proportion of “part-time/temporary workers” increased in the late 60s. On the other hand, the proportion of “self-employed” workers is on the decline. In the past, the proportion of self-employed senior workers, such as those running their own shops or farms, was higher than in other age groups, but it seems that the proportion of those working in employed positions has been increasing recently.

Figure 1: Changes in the employment status of senior workers (2017-2023)

Source: Persol Research and Consulting “2023 Survey of Employment and Growth of 10,000 Workers”

As of 2017, almost all companies were taking measures to ensure employment up to the age of 65 (including companies that limited the scope of those eligible), but the percentage of companies introducing a mandatory retirement age of 65 increased from 15.3% in 2017 to 21.2% in 2022*2. This trend seems to be reflected in the rise in the percentage of full-time employees in their early 60s.

In addition, the number of companies with a mandatory retirement age of 70 or that have abolished mandatory retirement is still only a few percent as of 2022, but the percentage of companies that allow employees to work until they are 70 or older, including continued employment, has increased from 22.6 from 22.6% in 2017 to 38.2% in 2022*2. As many people continue to work after the age of 65 but in part-time or temporary positions, it is thought that the ratio of part-time and temporary workers in their late 60s is increasing. In addition, there are many senior workers who look for jobs at places like Silver Human Resources Centers and change jobs by taking up part-time or temporary positions. The impact of the labor shortage is also helping to increase demand for part-time and temporary work among seniors.

As we can see, the rise in the employment rate of seniors is being supported by the expansion of employment opportunities for senior workers.

※2 From the Ministry of Health, Labour and Welfare's “2022 Report on the Employment Situation of Older Persons”

The senior workers themselves have not changed their answer to the question of ”how old they want to work until

So how are the attitudes of senior workers themselves towards work changing?

The results of this survey show that the “age at which senior workers in each age group want to continue working” has not changed since 2017 (Figure 2). The average “age at which senior workers want to continue working” is around 70 years old for those in their early 60s, and 73-74 years old for those in their late 60s, and has remained flat. There have also been no major changes in the distribution.

Figure 2: Results of the survey on “how old senior workers want to work until” (2017-2023)

Source: Persol Research and Consulting “Employment and Growth Survey of 10,000 Workers 2023”

In other words, while the employment rate for seniors is increasing, it is clear that the number of seniors who are motivated to continue working is not increasing in each age group. The increase in the employment rate for seniors is thought to be due to factors such as the expansion of employment opportunities, which has increased the opportunities for seniors to continue working, and the extension of healthy life expectancy, which has reduced the number of people who want to work but are unable to do so. However, it is also possible that the increase in the employment rate has led to a rise in the number of individuals who want to work for longer, as people who have previously chosen not to work have also started to work, and this may be counteracting the increase in the number of individuals who want to work for longer.

Looking at the change in the “age at which they want to continue working” for young workers in their 20s and 30s, there is a clear downward trend (Figure 3). The issue of pensions for the elderly is still fresh in our memories, but despite the uncertainty about the future, it seems that more young people are thinking about retiring early. The proportion of people who want to “work actively throughout their lives” is also decreasing.

Figure 3: Results of survey of young workers on “how old they want to be when they retire” (2017-2023)

Source: Persol Research and Consulting “2023 Survey of Employment and Growth of 10,000 Workers”

The reasons for changing jobs have changed from contract expiration to dissatisfaction with pay

We are also beginning to see changes in the employment behavior of senior workers. The rate of job-changing among senior workers over the past year was 18.2%, which is the second highest level after workers in their 30s*3, but the reasons for changing jobs are changing. Looking at the reasons for changing jobs in one's 60s, we can see that the number of people changing jobs due to the expiration of their contract (e.g. mandatory retirement) has decreased, while the number of people changing jobs due to dissatisfaction with their salary has increased (Figure 4). It is thought that the number of senior workers changing jobs is increasing not because of job changes due to the expiration of contract periods, but because of dissatisfaction with the low salary amounts during continued employment, due to the increase in the number of companies that continue to employ workers after the age of 65.

Figure 4: Changes in reasons for changing jobs (2019-2023)

Source: Persol Research and Consulting “2023 Survey of Employment and Growth of 10,000 Workers”

In many cases, when senior workers are re-employed after retirement, their salaries are drastically reduced but the nature of their work remains the same, and it has been pointed out that there are not a few senior workers who are dissatisfied with this. It has also been pointed out that due to this kind of treatment and ageism*4 in the workplace, senior workers themselves feel that they are not being “expected”, and that this is causing them to lose motivation*5.

As the continued employment of senior workers becomes more widespread, it is thought that maintaining the motivation of senior workers and continuing to employ them in a productive way will become even more important.

※3 From the “2022 Employment Trends Survey” by the Ministry of Health, Labor and Welfare
※4 Refers to prejudice and fixed ideas (stereotypes) about age, and discrimination based on these
※5 Tsuneki Ishiyama, “How to Work before and after Retirement: Thoughts on Living in the Third Age”

What is important for the well-being of senior workers and their success in the workplace

So, what is important for senior workers to be able to play an active role? We focused on the concept of “working well-being*6” as a way of describing senior workers who are working with vitality and happiness, and conducted an analysis.

*6 This refers to a state where people feel happy through their work and are not unhappy.

One of the things we found as a result of this was that “a sense of growth through work” was strongly linked to the happiness that senior workers felt through their work. Of the senior workers who answered that they “did not feel any growth at all/did not feel any growth” in the past year, the proportion of those who felt happy at work was just under 20%, but among senior workers who answered that they “felt a lot of growth/felt growth”, the proportion was around 70%. Although growth is rarely discussed in connection with senior workers, there is no difference in the degree of correlation between the sense of growth of workers and well-being by age. No matter how old you are, learning new things and growing through work increases the sense of happiness at work.

However, the events that made them feel they had grown were different from those of younger workers. Around 40% of senior workers felt they had grown through “feeling a sense of purpose and fulfillment in their work”, and there was a tendency for fewer of them to cite guidance from their superiors or friendly rivalry with colleagues (Figure 5). It can be said that it is particularly important for senior workers to choose work that they can feel is worthwhile and meaningful.

Figure 5: Reasons for growth by age group (2023)

Source: Persol Research and Consulting “2023 Survey of Employment and Growth of 10,000 Workers”

After being re-employed, senior workers often work under younger managers. In general, when younger managers manage older subordinates, it is said that the relationship can easily become strained due to factors such as the reversal of their previous positions. So, what kind of actions should managers take to ensure that their senior workers are happy and able to work to their full potential?

We analyzed the survey data and extracted the characteristics of managers of senior workers who are happy at work. Please note that the overall trends may not apply to individual senior workers. As shown in Figure 6, the managers of senior workers who work well tended to acknowledge the existence of their senior workers, take their opinions into account, and treat them equally with other members, while also providing top-down support such as communicating organizational goals and supporting work progress. It seems that they respect their senior workers as experienced employees, but also provide them with firm support in their work as their superiors. In addition, the results showed that actions that are considered important for younger employees, such as “providing opportunities for growth”, “evaluation that matches work performance”, and “gratitude and appreciation”, are not particularly important for the well-being of senior workers. For senior workers who are not at the stage of aiming for promotion or advancement by being evaluated by the organization, it seems that these actions are not likely to improve their well-being.

On the other hand, the actions of supervisors that decrease well-being were “sharing personal stories” and “listening to worries and complaints”. Depending on the relationship, it is likely that these are not appropriate actions for older subordinates with a twisted hierarchical relationship.

Figure 6: Supervisor management that increases the “well-being of working” for senior workers (2023)

Source: Persol Research and Consulting “2023 Survey of Employment and Growth of 10,000 Workers”

Summary

In this column, we looked at the data from the ‘2023 Survey of Employment and Growth of 10,000 Workers’ to see how the situation for senior workers has changed in recent years. The main points of this column are as follows

・The number of senior workers in employment increased between 2017 and 2023. Specifically, the ratio of “full-time employees” increased among those in their early 60s, and the ratio of “part-time workers” increased among those in their late 60s. In contrast, the ratio of “self-employed” workers decreased.

・The “age at which senior workers want to continue working” has not changed. Overall, it seems that senior workers' motivation to “work for longer” is not increasing.

・From 2021 onwards, the number of senior workers changing jobs due to the expiration of their contract (e.g. retirement) is decreasing, while the number changing jobs due to dissatisfaction with their salary is increasing. In the continuing employment of seniors, which is continuing to expand, it is important to prevent a decrease in motivation due to a reduction in salary, etc.

In order for senior workers to be happy in their jobs, it is important that they feel they are growing through meaningful and worthwhile work, and that their superiors respect them as experienced workers, but also provide them with the support they need to carry out their work in a top-down manner.

I hope that this column will be of help in understanding the trends of senior workers.

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