Elderly workforce participation key to boosting consumption: report


Participation in the labor force by elderly people will most likely boost consumption in Japan, the government said in a report released Monday.

Of households headed by people aged 60 or older, the consumption levels in those led by nonworking individuals are lower than those led by people who work, according to the report from the Cabinet Office.

The report noted that consumption spending by elderly households accounts for about 50 percent of related overall spending in Japan, reflecting the rapid aging of the country’s society.

Disposable income levels exceed consumption spending in households led by working people aged 60 or above, the report said. It noted that the average monthly consumption spending by such households stands at ¥316,000, some ¥70,000 more than households led by elderly people without jobs.

The government report underscored the importance of improving the working environment for the elderly.

Among obstacles to participation in the labor force by elderly people, the report cited a lack of flexible working hours and suitable job training systems, and low wages.