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.
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