Changes in the Job Competency Levels of Middle-Aged and Older Workers
Supposing that the peak job competency level of a worker is 100%, companies recognize that the competency level of workers in their 40s is 85%, which drops to 79% in workers in their early 50s and to 70% in workers in their late 50s.
On the other hand, supposing that the level of wages earned by workers in their 50s is 100%, workers in their 40s earn only 82.5% of what workers in their 50s earn, and workers in their 30s earn only 55.1% of what workers in their 50s earn, indicating that the mismatch between job competency and wage becomes wider with age.
Companies recognize that the age at which the job competency of a worker reaches its peak is the late 30s. In terms of occupation, the job competency of people who work in the manufacturing sector peaks in their 30s and decreases dramatically afterward, while the job competency of people who work in the services sector increases dramatically in their 30s and decreases gradually afterward.
For extension of the retirement age to be beneficial to both the workers and the companies, the job competencies of workers must be accumulated in a constant manner via training and reach a peak in their 50s.
The vocational training participation rate for workers aged 50 or over is 13.5%, which is significantly lower than the 37.7% of workers in their 30s. This may be the cause for the decrease in job competencies of workers over the age of 30.
The Difficulties that Extension of the Retirement Age Causes for Companies
As the problems that would arise if the retirement age were extended to 60 years old, 76.5% of companies picked 'burden of labor costs’ and near 50% picked 'insufficient competencies of middle-aged and older workers'.