Japanese Labour Market and Employment Problems:

Aging Society

Civil Societies of the EU and Japan Working Together on Global Challenges

28 May 2010

MATSUSHIGE, HisakazuOsaka School of International Public Policy

Osaka University

Topics

1. Aging of population2. Nonlabour Force3. Unemployment4. Non-regular Workers

1. Aging of population

• Japan is rapidly aging.

• Source of labour force– Who will support the growing mass of people

60 years old or older.

Population Pyramid1990

male female

Population Pyramid 2010

male female

Population 2020

male female

2. Nonlabour Force

• Increase of nonlabour force

• People , especially male, 60 years old or over are less likely to work.

Nonlabour force:Less Japanese are working.

Non Labour Force

(1,000)

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

Labour Force Participation Rates

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

1975

1976

1981

1986

1987

1988

1989

1990

1991

1996

1997

2001

2002

2006

2009

%

15- 19 years old

20- 24

25- 29

30- 34

35- 39

40- 44

45- 49

50- 54

55- 59

60- 64

65 or over

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

Labour Force Changes by Age

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

Females not in Labour Force

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

1953=100

Male

Female

0

50

100

150

200

250

300

350

1953

1957

1961

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

1,0

00 p

eopl

e

Male

Female

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

Male Labour Participation Rates

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

15- 19 years old

20- 24

25- 29

30- 34

35- 39

40- 44

45- 49

50- 54

55- 59

60- 64

65 or over

%

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

Female Labour Participation Rates

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

15- 19 years old

20- 24

25- 29

30- 34

35- 39

40- 44

45- 49

50- 54

55- 59

60- 64

65 or over

%

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

http://www.stat.go.jp/data/roudou/index.htm

3. Unemployment

• Young and elderly workers are more likely to be unemployed.

• Unemployment rate dropped after passing the peak in 2002. However, it soared in 2009, again.

• 5.0% in March 2010

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

%

Total Total

15- 19 years old

20- 24

25- 29

30- 34

35- 39

40- 44

45- 49

50- 54

55- 59

60- 64

65 or over or more

1. Unemployment

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

4. Non-regular Workers

1. Increase of non-regular workers is observed as in many countries.

2. Women are more likely to be non-regular workers than men.

More than 1/3 of workers are non-regular

0% 20% 40% 60% 80% 100%

2001, Aug.

2005

2009

Regular staff

Part- time worker

Arbeit (temporary worker)

Dispatched worker fromtemporary labour agency

Contract employee orentrusted employee

Other

66.3% 33.7%Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

http://www.stat.go.jp/data/roudou/index.htm

Employee by Type of Employment

Male 2010 March

82%

3%

6%

1% 6% 2% Regular staff

Part- time worker

Arbeit (temporaryworker)

Dispatched workerfrom temporarylabour agencyContract employeeor entrustedemployeeOther

Female 2010 March

47%

33%

7%

3%

7%3%

Regular staff

Part- time worker

Arbeit (temporaryworker)

Dispatched workerfrom temporarylabour agencyContract employeeor entrustedemployeeOther

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

http://www.stat.go.jp/data/roudou/index.htm

Labour Force Participation Rate of Women

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

15～

1920

～24

25～

2930

～34

35～

3940

～44

45～

4950

～54

55～

5960

～64

65～

age

%

1970

1980

1986

1990

2000

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Rodo-ryoku Chosa (Labour Force Survey)

http://www.stat.go.jp/data/roudou/index.htm

International Comparison

Souece: OECD E,mployment Handbook (2004)

2) Data are based on actual hours worked.3) Part- time employment based on hours worked at all jobs.4) Less than 35 hours per week.5) Data are for wage and salary workers only.

1) Part- time employment refers to persons who usually work less than 30 hoursper week in their main job. Data include only persons declaring usual hours.

Composition of Part- time Employment

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

1990 2000 2003

male

%

Australia2,3

Germany

Netherlands

Japan2,4

UK

US5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1990 2000 2003

Female

%

Australia2,3

Germany

Netherlands

Japan2,4

UK

US5

Dwindling Birthrate: International Comparison

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1970-75

1975-80

1980-85

1985-90

1990-95

1995-00

2000-05

2010-15

2020-25

2030-35

per

1,0

00

peo

ple World

Japan

Korea

China

US

Australia

Source: Statistics Bureau, http://www.stat.go.jp/data/sekai/02.htm