What I'm getting at is that because of the severe social stigma associated with failure or being fired, companies are also very hesitant to hire new workers unless they are absolutely certain as a company they want to keep this employee for decades. As a Japanese company when you are force to let someone go you are signaling to society that this person is unfit for the workplace.

Instead of hiring younger workers, Japanese companies shuffle older employees around in the company. Entry level positions are often taken by older employees who were unable to perform at higher levels. Instead of rotating these older workers out of the company, they are often given entry level positions that would normally (at least in the states) go the young workers.