Taiwan is one of the countries with a dramatically aging society. Last year, the number of people aged 65 or older accounted for 14 percent of the population, officially making it an “aged society,” according to the Ministry of the Interior.
The ministry expects the ratio to continue rising, with people aged 65 or older making up 20 percent of the total population by 2026 — a “super-aged society.”
The effects of the demographic shift — longer life expectancy and a low fertility rate — are likely to become more apparent this year in terms of reduced growth of the labor force and productivity. The decline in the nation’s working-age population — people aged 15 to 65 — is expected to accelerate after peaking in 2015, economists have said.
An aging population has several negative consequences for the economy, such as slower growth in per capita income and higher social security payments. It would also make it difficult for Taiwan to achieve rapid economic growth in the next few years, DBS Bank has said.
The issues are a matter of national security and should be high on the government’s agenda, although tackling them is no easy task, as they are costly and time-consuming.
Increasing women’s participation in the labor market is one way to address the labor shortage. Encouraging people to delay retirement is another.
The Executive Yuan last week approved a bill that aims to promote employment for middle-aged and elderly people as part of a government strategy to help companies hire those willing to return to work after leaving the workforce or retiring early.
Notwithstanding the concerns that an aging society brings, middle-aged and elderly people provide a growing labor pool for Taiwanese businesses.
According to local media reports, about 9 percent of employees at a leading fast-food chain in Taiwan are over 45, while people aged 40 or older make up 45 percent of staff at a major hypermarket and 2 percent of workers at a prominent convenience store chain are at least 55 years old.
The bill, which is to be sent to the legislature for review and debate, provides a legal framework to protect the rights of middle-aged or older jobseekers and allows companies the flexibility of time-based contracts when hiring them.
However, allowing them to better invest their energy, technical skills and experience in the workforce requires a fundamental change in the perceptions of others, as negative stereotypes of elderly people, such as weakness, clumsiness and a decreased ability to learn new skills, are common. The most fundamental problem is the still-unfriendly employment environment they would face and finding ways to improve the situation. These call for the establishment of more support measures.
The bill is a long-overdue but welcome move, as it would give middle-aged or older people more opportunities and help address labor shortages, while allowing them to share their experience and cooperate with younger people, contributing to social and economic development.
However, if companies only give them jobs that young people are not willing to do, then there would be no way for them to truly pass on their knowledge and experience and achieve the government’s goal of using the nation’s labor force effectively.
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