By Organisation for Economic Co-Operation and Development

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However, older people in Japan are already facing a number of difficulties in the labour market and this situation could worsen in the future if economic growth remains stagnant while the number of people in the older age groups continues to rise. This could, in turn, have a negative impact on their desire to remain in the labour force. The purpose of this chapter, therefore, is to identify those areas where action may be required to improve the labour market situation of older people. The first section of the chapter examines whether the impact of stagnant economic growth over the past decade has had a negative effect on labour force participation rates of older people in Japan.

In all of these scenarios, the labour force declines at a faster rate after 2020, but again the magnitude of this drop will be larger if participation rates for the older population fall and it will be smaller if there is a general rise in participation rates. 4). Over the next two decades, labour force growth will be much slower in Japan than on average in the EU or in the OECD area as a whole. Over the period 2020-2050, this gap may even widen further since the rate of decline in Japan’s labour force could be particularly steep.

This could, in turn, have a negative impact on their desire to remain in the labour force. The purpose of this chapter, therefore, is to identify those areas where action may be required to improve the labour market situation of older people. The first section of the chapter examines whether the impact of stagnant economic growth over the past decade has had a negative effect on labour force participation rates of older people in Japan. It also looks at whether there is much scope to increase these participation rates, given that they are already very high by international standards.

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