Retirees regain ground in service jobs market

Eyeing retirees' rich experience, better time flexibility and lower hiring costs in China, companies such as McDonald's and Universal Beijing Resort are showing stronger interest in hiring people in this demographic group, a practice long in place but recently under the spotlight again.

McDonald's China's old recruitment poster for retired staff recently circulated online, causing heated online discussions and wide media coverage.

The poster lists three shifts per week and age requirements for applicants — 50 for women and 60 or older for men — as requirements. Benefits included triple pay on national holidays, free Saturday meals, staff discounts and commercial insurance.

McDonald's China confirmed the graphic was several years old, saying retiree hiring has long been standard practice.

In 2022, domestic media reported that the fast-food chain had posted on a seniors' job board seeking women over 50 and men over 60 for flexible work schedules — four to five days a week, four to eight hours a day — with monthly wages of 1,800 ($251) to 3,500 yuan.

In its reply to China Daily, McDonald's China said that it "strictly complies with all national labor laws and government guidelines "and provides full social-insurance coverage for full-time employees, while also operating a "flexible and diverse employment model" that includes rehiring retirees.

The company said such workers receive compliant pay, commercial insurance and other benefits, adding that it aims to deliver "secure, well-rewarded and future-focused "compensation in a "safe, respectful and inclusive" workplace.

The recent rising public attention to companies' hiring retirees came as China's top court, the Supreme People's Court, issued a judicial interpretation on Aug 1, clarifying that any contractual agreement excluding social insurance contributions is invalid and emphasizing that paying social insurance is a legal obligation for both employers and employees.

Some employers cite retirees' work experience, quick adaptation, job loyalty and sense of responsibility. In addition, it will also lower the labor cost.

Jin Weigang, deputy director of the China Association of Social Security, said the interpretation is not a new regulation, noting that the requirement to pay social insurance has long existed. He said some media had over-interpreted the move, drawing attention to companies such as McDonald's.

Jin said some enterprises hire retired workers to reduce labor costs and diversify their workforce — practices that may, in certain cases, crowd out younger job seekers. "It is important to further improve labor laws concerning employers' practices and safeguard the lawful rights and interests of employees," Jin added.

Yet, the model of hiring retirees is spreading. Universal Beijing Resort has advertised for retirees with a junior-high education who can work four- to eight-hour shifts and stand for long periods, offering 30 yuan an hour.

The trend comes as China faces rapid population aging. National Bureau of Statistics data show 310.31 million people aged 60 and above — 22 percent of the population — with a large proportion aged 60-64, a demographic offering a strategic window to deepen eldercare reform and advance policies to address aging.