Editorial: Support for Japan's 'employment ice age generation' needed
Members of Japan's "employment ice age generation," who have faced tough conditions, are now in their 40s and 50s. Measures that take their advancing age into account are required.
The government has begun considering new support measures for this generation of workers, which it is set to include in its Basic Policy on Economic and Fiscal Management and Reform to be formulated in June.
The employment ice age generation specifically refers to those who entered the workforce around 1993 to 2004, after Japan's economic bubble burst. There are estimated to be some 17 million to 20 million members, accounting for one-sixth of the nation's population. Due to labor deregulation at the time, many are in non-regular employment.
The government has intermittently implemented measures to date. Since fiscal 2020, it has strengthened employment support, setting up specialized counters at Hello Work public employment offices, while the national and local governments have established recruitment slots.
With the recent economic recovery and labor shortages, the number of people becoming regular employees through mid-career recruitment has increased. However, those who had few opportunities to acquire skills face limited wage growth.
What is required first is renewed learning that leads to improved compensation packages. Due to digitalization, working styles in various fields such as logistics and construction are changing. Acquiring skills suited to such situations makes it easier to find employment. If people obtain national qualifications, such as a certified care worker, they are able to continue working for the long term.
Companies should fulfill their role as employment providers. They bear responsibility for creating the ice age generation by suppressing hiring to prioritize immediate profits.
Securing housing is also essential. A government survey found that the employment ice age generation has a lower homeownership rate than other generations. The government is promoting policies to increase rental housing that is more accessible for the elderly. It is necessary to further strengthen these measures.
The issue of securing funds for retirement should be addressed at an early stage. Due to long periods of non-regular employment, the savings of people in this generation tend to be low.
The amount people receive from public pensions, which support their living alongside savings, are expected to decrease. The government had aimed to reform the system to secure benefit levels, but abandoned the plan due to opposition from the LDP, which feared the move would lead to discussions about hiking taxes to obtain the necessary financial resources. The erosion of future pensions has accordingly been left unaddressed.
Without effective policies, poverty and inequality will increase, which could undermine social stability. All possible measures to assist the employment ice age generation must be taken by both the public and private sectors.
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