90% of irregular workers in Japan struggle to make ends meet, 80% see no pay rises: survey – The Mainichi

2 comments

1. It’s a tough situation. Japan is relatively unique in the economic challenge with its population as the proportion of the elderly population is increasing rapidly, while the number of young people is decreasing due to a low birth rate and lack of immigration. Though this demographic shift is expected to cause a shortage of workers in the future, I don’t think it will necessarily mean that wages will increase.

   Japan has a highly segmented labor market where there is a significant wage gap between regular and non-regular workers. Non-regular workers, who account for a significant portion of the workforce, receive lower wages and fewer benefits compared to regular workers. This segment of the labor force may expand with an increase in labor shortages, further driving down wages.

   This coupled with the relatively weak bargaining power of workers. Japanese companies have traditionally had a strong bargaining position compared to their workers. They have been able to keep wages low by outsourcing jobs to lower-wage countries and employing temporary workers. Furthermore, Japan’s labor laws allow companies to terminate certain classes of workers (not full time) with little or no justification, making it difficult for workers to negotiate higher wages.

   On top of that you have the use of automation and other technological advancements which can offset labor shortages by replacing workers with machines. Japan is a arguably quite a leader in robotics and automation, so it is possible that companies will rely more on these technologies rather than paying higher wages to attract workers.

   The increasing number of retirees will put pressure on the younger working population to support them through taxes and social welfare programs, while simultaneously decreasing demand overall and shifting what kind of things are in demand. Meaning companies have less business to do, which means less money coming in.

   It’s a tricky pickle.

2. for people confused “irregular” means “part time”