Research Briefing | Sep 5, 2022

Working hours decline despite rising labour participation in Japan

Japan Working hours decline despite rising labour participationJapan’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.
Back to Resource Hub

Related posts

Post

Slowdown in 2023, except for Chinese cities

Growth across advanced Asia Pacific cities is slowing down in 2022's second half, and their full-year growth rates will trend downwards in 2023. In emerging Asian cities, we expect an uptick in growth in 2022, followed by a marked weakening in 2023.

Find Out More
Tokyo, Japan

Post

BoJ to look through a temporary decline in monetary base

The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields. 

Find Out More

Post

Unravel: Japan’s working hours paradox

Shigeto Nagai, Head of Japan Economics and Chief Representative in Japan at Oxford Economics discusses labour demand and supply dynamics that are impacting Japan’s long-term economic growth prospects.

Find Out More