With the Baby Boomer generation approaching full retirement, views are emerging that women's labor force participation is on par with that of the Nordic countries, while the model's reliance on low wages is nearing its limits and companies are facing pressure to undertake reforms.
As women's and senior citizens' participation in the labor force approaches its limits in Japan and the Baby Boomer generation nears full retirement, it has been suggested that companies may be forced to change course in securing talent for the future. The article organizes the issues surrounding structural changes in the employment environment, while quoting part of an analysis of economic indicators.
The article presents the view that, over the long term, an employment model dependent on low wages lacks sustainability, and emphasizes the need for diverse talent strategies, including expanding women's labor force participation and making use of senior workers. It also presents the view that the growing number of Baby Boomer retirements will affect companies' ability to mobilize talent.
Companies are said to need to consider reviewing wage curves and working environments, introducing flexible working arrangements, and enhancing childcare and nursing-care support. The article concludes by discussing the impact of these changes on Japan's labor market.