The Work Ethic of "Turning Elders," Who Hold the Key to Japanese Society

*In this article, Japanese individuals aged 50 and above are defined as "Elders," while those aged 50 to 64 are defined as "Turning Elders."

As population decline and aging accelerate labor shortages across various sectors, the workforce of the senior generation (aged 65 and over) is becoming increasingly vital. This is evident in the proportion of workers aged 60 and over exceeding 20% of the total workforce.

Improving the working environment for the senior generation is critically important as an immediate measure toward achieving the national goal of a "society where people remain active throughout their lives." However, from the perspective of continuously improving and solving various social problems stemming from labor shortages, the generation just below them—those aged 50 to 64—holds the key.

Reaching the midpoint of the 100-year lifespan era, this generation shows little awareness of physical or mental decline, while simultaneously representing a segment experiencing increasingly diverse values regarding work and life. Their valuable labor force potential could either increase or diminish depending on their attitudes and purposes toward "working."

Dentsu Inc. Senior Lab defines Japanese individuals aged 50 to 64, who are facing life transitions on various fronts, as "Turning Elders." In collaboration with Staff Service Holdings, a company supporting Japan's workforce primarily through staffing services, we conducted a "Survey on Work Attitudes" ( see survey overview here ). This article introduces the work motivation and values of "Turning Elders" revealed by the analysis results.

About Dentsu Inc. Senior Lab
An internal cross-functional project at Dentsu Inc. focused on developing insights and solutions for senior-related issues under the theme of "Solving Social Challenges in a Super-Aged Society."
Website: https://www.projects.dentsu.jp/seniorlab/

<Table of Contents>
▼Life's Midpoint: A Major Turning Point in Work Styles

▼Turning Elders' Work Attitudes, Values, and 6 Clusters

▼Job Matching Based on Understanding Each Cluster's Characteristics is Key to Maximizing the Workforce

The midpoint of life is a major turning point in how we work

Figure 1 shows the average annual wage by gender and age group. It reveals that for both men and women, wages increase steadily with age until around 45-49. After turning 50, the growth rate slows. For men, wages peak between 55-59, while for women, the peak is between 50-54, after which they begin to decline. In other words, from the 10s to 20s when starting work, up until the 40s, wages and personal standing improve proportionally with effort, creating an environment conducive to finding work rewarding. However, after age 50, wages not only stop increasing significantly but often begin to decline. For some, opportunities to gain self-affirmation through promotions or higher status may decrease, potentially leading to changes in motivation and purpose regarding work.

[Figure 1]

Source: 2023 Basic Survey on Wage Structure (Ministry of Health, Labour and Welfare)

Next, Figure 2 shows the average age at first marriage and the mother's age at childbirth. This graph indicates that the average age of mothers at the birth of their second child was approximately 28 to 30 years old from around 1970 to 1995. Since the average age at first marriage for men is about two years older, the average age of fathers at the birth of their second child is estimated to be around 30 to 32 years old. Considering this, the parents' age when their child graduates from university and begins working as an adult—approximately 22 to 24 years later—would be around 50 to 56 years old, precisely matching the age group of the turning elder.

[Figure 2]

Source: 2021 Vital Statistics Special Report (Ministry of Health, Labour and Welfare)

From the above, we can envision a scenario where, professionally, they feel stagnation in terms of salary and career advancement, while at home, the independence of their children means they return to living as a couple for the first time in over 20 years. Additionally, some may face limitations on their working hours due to caring for aging parents or changes in their own health. Thus, the turning elder stage represents a significant turning point in various aspects of life, such as work and family, making it a period highly likely to involve reevaluating life plans and changing attitudes toward "work."

Turning Elders' Work Attitudes and Values, and Six Clusters

Moving forward, we will utilize the survey results to examine the attitudes and values of Turning Elders toward work.

First, we performed factor analysis using responses regarding "What they seek in a job or new position" and "Desired work styles." The results are shown in Figure 3.

[Figure 3]

The analysis revealed that the work attitudes and values of Turning Elders are composed of the following six factors:

• Vitality Focus: Emphasis on human relationships, social connections, and a sense of fulfillment
• Career Focus: Self-growth, social impact, challenging new endeavors, etc.
• Income Focus: Living expenses, debt repayment, etc.
• Freedom Orientation: Work location, hours, balancing work and private life, etc.
• Self-Expression Focus: Utilizing personal abilities and leveraging career experience
• Emphasis on Working Conditions: Workplace location, ease of taking time off, employee benefits, etc.

Using the above factors, we classified Turning Elders into six distinct clusters as follows:

1. Lifetime Ascending Elders (3.5%): A group with strong reactions to various factors related to work. Regardless of age, they desire career advancement and personal growth through their work.
   
   &nbsp;
2. Career Utilization Elders (9.4%): Those with a strong desire to actively work by leveraging their established careers and honed experience.
   
   &nbsp;
3. Balance Elders (11.7%): Value both workplace environment (e.g., fulfillment, relationships) and working conditions (e.g., benefits, location/time flexibility).
   
   &nbsp;
4. Enjoy Elders (18.6%): Prioritize conditions like part-time work or an environment conducive to taking time off. They choose jobs with an eye toward maintaining health rather than income.
   
   &nbsp;
5. Rice Work Elders (24.3%): Their primary purpose for working is to earn income to support themselves and their families. Therefore, they prioritize being able to work full-time.
   
   &nbsp;
6. Taking a Break Elders (32.5%): A group showing little reaction to any factor, including income. Currently, their motivation or desire for work is difficult to discern.
   

Having examined various types of Turning Elders, Figure 4 presents a side-by-side comparison of the "preferred employment arrangements" for each cluster.

[Figure 4]

This graph reveals that the current employment forms desired by Turning Elders are polarized into two categories: "full-time employee or part-time/casual worker."

As is well known, working styles have diversified in recent years, particularly among younger generations, with side jobs and remote work becoming common. However, it is precisely for generations older than turning elders—who have accumulated life experience and face greater diversity in family circumstances, financial situations, and values—that flexible work options tailored to individual lifestyles and needs are essential. Extending one's "working life" without undue strain not only enhances financial security for living and leisure expenses but also improves quality of life through better physical and mental health. Given this, shouldn't the polarized attitudes toward employment types mentioned above be addressed as an issue requiring improvement?

Job matching that understands each cluster's characteristics is the key to maximizing the workforce

Based on the diverse work attitudes and values of the Turning Elders revealed by cluster analysis, we received comments from Mr. Makoto Hirai, Executive Officer of Staff Service Holdings, regarding the future of this generation and Japanese society.

In this era often referred to as the "100-year life," the emergence of various digital tools and AI has diversified people's work styles and objectives. Simultaneously, in Japan's rapidly super-aging society, various social challenges are becoming apparent. We believe it is critically important to create an environment where the elder generation aged 50 and above can feel motivated to continue working as long as possible.

I feel that the Turning Elders generation, having adapted to changes in work environments and values since starting their careers as new employees, and possessing diverse experiences accumulated over their long lives, is a generation where each individual's strengths are clearly defined. They are a group that can play a vital role in today's Japanese society, which faces various social problems stemming from labor shortages.

Their purposes and meanings for working are more diverse than those of younger generations. Some wish to work full-time using their skills just as they did during their active careers, while others seek to work primarily to maintain social connections beyond just earning income. Precisely because of this diversity, we recognize that the presence of a third party like our company—one that acts as a neutral intermediary between companies and individuals, engaging and coordinating with both sides—becomes increasingly important for enabling each person to maximize their abilities and thrive.

We hope that by talent-related companies, including ours, appropriately disseminating information and raising awareness of the potential within the elder demographic, we can provide an opportunity for those currently less visible in the workforce—the "taking a break elders"—to consider working. Moving forward, our company will continue to engage with diverse values and attitudes toward work, striving to contribute to the realization of a better Japanese society.

As of August 1, 2024, the number of Turning Elders stands at approximately 25.75 million. This represents 20.8% of Japan's total population. Creating a society where such a large number of people can continue working proactively is expected to have a significant positive impact on the Japanese economy as a whole. This is because it will not only increase the total labor force but also stimulate consumption.

Dentsu Inc. Senior Lab will continue its research and information dissemination, focusing primarily on the (middle-aged to) senior demographic, examining diverse perspectives including their attitudes and behaviors.

[Contact] Dentsu Inc. Senior Lab: senior-lab@dentsu.co.jp Contact: Koiso / Ikemachi

[Survey Overview]
Survey Method: Online survey
Survey Period: Thursday, February 22, 2024 - Tuesday, February 27, 2024
Survey Population: 70,000 individuals aged 50–69 (both men and women) residing nationwide
*Analysis extracted 7,450 respondents aged 50–64 by gender and age group (5-year intervals) based on population composition (see below).