Companies are beginning to reevaluate the experience and know-how of people aged 50 and over, who are often the targets of corporate restructuring and have difficulty finding reemployment. Some enterprises have teamed up to establish an employment agency specializing in middle-aged and elderly workers that picks up outside talent and seeks to bring the skills and experience into its own group. Other companies are actively recruiting workers aged over 50. Meanwhile, some workers who have reached mandatory retirement age have formed companies with the aim of concentrating and utilizing their veteran experience and skills. In all these cases, the background factors are a feeling that restructuring has drained the workforce of richly experienced veterans and the forecast that Japan's declining birthrate is set to reduce the number of young workers. There is a need for experienced veterans overseas, too, and more and more middle-aged and elderly Japanese are going abroad, especially to other Asian countries, as technical instructors.

Employment Agency Established to Search for Experience
A labor dispatch firm specializing in middle-aged and elderly workers was set up in May by Orix Corp., a leading lease company. Over the next three years Orix aims to recruit 1,000 people in their fifties and sixties who have reached mandatory retirement age or retired early elsewhere and dispatch them in accordance with the needs of the 40 domestic companies within its group, which include the Orix head office and firms in the car rental, consumer finance, securities, and baseball management businesses. Orix hopes to utilize the skills and experience of these outside workers while at the same time curbing increases in personnel expenses.

Employment patterns take individual circumstances into account. Orix allows flexible contracts to accommodate such conditions as working every other day or so many hours a week. Dispatched workers assigned to full-time jobs just like regular employees can even be appointed to managerial posts. Pay is calculated on an hourly basis. According to the company, someone with a high level of know-how could earn as much as ¥10,000 an hour ($83 at ¥120 to the dollar). Such conditions are decided after interviewing the person and gauging his or her experience in previous jobs, qualifications, and expertise like language skills.

A number of other companies are actively recruiting older workers. For example, Cainz Home, a leading home appliance retailer based in Gunma Prefecture, last year recruited about 100 middle-aged and elderly workers, mainly in their late fifties, to answer questions from customers and serve as instructors in do-it-yourself classes. According to a manager in the company's personnel department, "We have a lot of young employees, so older workers have a big role to play with their experience and know-how. And if we can boost relations of trust with our customers as a result, then that will lead to greater sales."

There are also cases of companies being started up by middle-aged and elderly people. Established two years ago in Tokyo, J-Mother (site is Japanese only) consists of 12 employees including the president, who are all aged over 60. The business of this company is to inspect construction sites to verify that made-to-order houses are being built according to their designs and specifications. Its employees are veteran technicians and legal experts with lengthy experience working for general contractors, design companies, and other related firms. The president of the company commented proudly that "the experience and skills of veterans are in demand by both companies and consumers."

Young Labor Force Expected to Decline
One background factor that cannot be ignored in moves to exploit the experience and know-how of older workers is the changes that are forecast to take place in the labor force. According to the fiscal 2000 white paper on labor, while the population of young workers in the 15-29 age group is set to decline by about 4 million by 2010, the population of workers aged 55 and over is going to increase by about 3.8 million in the same period. Therefore, companies are likely to suffer a huge labor shortage in the future if they rely solely on young workers.

Meanwhile, there is strong demand for middle-aged and elderly Japanese with skills and experience in developing countries, too. And in response to this demand, the number of Japanese seeking a meaningful senior life by engaging in volunteer activities abroad is also rising. Since its launch in 1977 as a foundation acting as a bridge between these two needs, the Japan Silver Volunteers (site is Japanese only) has dispatched a total of nearly 2,400 persons to more than 60 countries.

The JSV dispatch is operated under a registration system, and at present nearly 1,000 persons are registered, mainly men in their sixties and seventies and women in their fifties and sixties. In response to a request from the destination country, the personal history of a registered volunteer wishing to go there is sent to that country. If the destination country gives approval, the volunteer goes. The JSV pays the flight expenses, and the hosts pay accommodation and food expenses and pocket money. Volunteers are needed in a diverse range of fields. Demand is particularly high for Japanese language instructors and for technical instructors in such fields as agriculture, forestry, fisheries, machinery, and chemistry. Volunteers are dispatched mainly to Asian countries and also to Russia. According to a JSV official, "Whatever the know-how or experience, there are always plenty of countries in need of them." The number of senior volunteers looks likely to go on increasing.