Working hours decline despite rising labour participation in Japan
Japan’s labour force has increased due to rising labour participation by females and seniors, despite a decline in the working-age population. However, hours worked per capita have been on a downward trend, increasingly weighing on GDP and household incomes.
What you will learn:
- Most females and seniors work part-time and their average working hours have been declining. In addition, the working hours of full-time employees have also started to decline in recent years due to the legislation to restore a better work-life balance.
- More part-time workers with shorter working hours have depressed economic growth from the supply side through a decline in labour input and stagnation in productivity. A higher proportion of low-paid workers have also dragged down household incomes and domestic demand.
- When discussing the long-term macroeconomic implications of ageing, we need to consider not only labour participation but also the working style of an aging society, especially working hours per worker.
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