Human resource policies and older workers in Japan

Abstract

Substantial changes in human resource policies are occurring in Japanese firms in response to the rapid aging of the population. Employers are reconsidering the concept of lifetime employment, seniority-based wages, retirement policies, and employment opportunities for older workers. In response to government pressure, mandatory retirement ages are being raised. These trends are examined using a variety of sources of information concerning employment practices in Japan. The analysis indicates that important changes in human resource management practices are underway and further changes are anticipated as the labor force continues to age.