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UPDATED: December 2, 2008 NO. 49 DEC. 4, 2008
Why Retire Later?
Some believe it could create a shockwave across China's saturated labor market; Other observers defend the initiative
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As for how to solve the unemployment problem facing young college graduates and migrant workers, the only way is to increase vocational training so that they fit available jobs that are really large in number.

Guo Lichang (National Business Daily): To extend the mandatory retirement age is actually not so horrible as some people think. In China's labor market, not all posts currently occupied by older workers can be filled by the inexperienced young. This partly explains why some people cannot find jobs, while some companies cannot find qualified young workers.

Therefore, a lower retirement age for skilled workers will not necessarily increase employment opportunities for the young, but might have a negative impact on the country's development. In fact, if companies made good use of older workers, it would help boost the national economy and thus create more jobs.

Ren Weimin (Beijing Youth Daily): Statistics show that in Shanghai, 78 percent of skilled workers aged 60 to 70 are reemployed after retirement. This phenomenon can be seen almost everywhere in the country and has lasted for many years.

Some people are opposed to the retirement age extension initiative allegedly for fear of reducing job opportunities for young people. If we look at the problem over the next few years, this worry is reasonable; but if we look into the far distant future, the move is actually a precaution.

In one or two decades, China will become an aging society, when the major problem will not be a labor surplus but how to support the huge number of senior citizens. By then, the limited young workforce will not be able to satisfy the huge demands of various posts. Under these circumstances, older workers will have to remain in their posts longer than today.

China's fast-progressing aging process requires us to take precautions as soon as possible.

Besides, in accordance with sociological theories, if the mandatory retirement age is set too low, people will become prematurely senile, psychologically and physiologically. This will increase the burden of supporting the old on the state and the younger generation, which will hinder social development.

Big blow to job market

Zhao Guangrun (www.ycwb.com): Every year, 20 million people join the workforce across China in both rural and urban areas, but the country can only offer 12 million jobs, meaning 8 million people cannot find work. The question has to be asked: How long can this situation continue?

If the retirement age were extended to 65, the employment market would shrink further. As some people stay in their current posts longer, others will have to wait longer to find employment.

Furthermore, development relies heavily on the timely introduction of young blood. Today, many government agencies and companies replace older workers in important posts with younger ones before the former holders formally retire in order to maintain creativity in the workplace. The proposal to extend the mandatory retirement age goes against the trend in many industries.

If the retirement age reform only aims to relieve the government from the pressure of a pension fund deficit, but worsens the employment situation, it will not be effective.

In recent years, the state's fiscal revenues have increased much faster than workers' incomes. It seems more practical to compensate for the huge deficit in the pension fund by increasing the government's capital injection.

Tang Jun (Guangzhou Daily): Some economists estimate that if China's annual economic growth rate remains between 8 and 9 percent, 8 to 9 million new jobs can be added every year. Together with the vacancies resulting from people retiring, actual new jobs will amount to 12 million or so.

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