Japanese retirees in demand as labor crunch worsens

TOKYO — Part of Japan’s plan to ease its severe labor shortage involves enticing retirees back to work. But even they are in short supply these days, crippling industries that once had an ample labor pool of seniors willing to work.

Industries that depend on seniors for a significant portion of their workforce — like security, cleaning and building management — have seen job applicants plummet recently.

Now, these industries are in a fight with other sectors as more companies extend their retirement age to hold onto aged employees.

“Along with cleaning and security, we were previously considered one of the three main choices for seniors who wanted to continue working,” said a representative from building management provider Tokyu Community. “But applications have suddenly fallen over the past few years.”

The company, which employs many people past retirement age, saw job applications drop 13 percent in fiscal 2017 from the previous year.

At Daiwa LifeNext, subsidiary of construction company Daiwa House Industry, applicants are also becoming scarce. “It’s getting harder to attract seniors,” said a company representative. /Nikkei Asian Review