Analysis of the Labour Economy - mhlwWhile the Japanese economy is gradually recovering, employment...
Transcript of Analysis of the Labour Economy - mhlwWhile the Japanese economy is gradually recovering, employment...
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2017
Analysis of the Labour Economy
― Challenges for Promoting Innovations and Realizing Work-Life Balance ―
〔 Summary 〕
September 2017
Ministry of Health, Labour and Welfare
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2017
Analysis of the Labour Economy
― Challenges for Promoting Innovations andRealizing Work-Life Balance ―
〔 Outline 〕
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While the Japanese economy is gradually recovering, employment situation is steadily improving:
the FY2016 average unemployment rate was 3.0%, the lowest rate in 22 years since FY1994, and
the effective ratio of job offers to applicants was 1.39 times, the highest ratio in 26 years since
FY1990 and so forth. [Fig. 1-1, Fig. 1-2]
[Trends of regions and regular/non-regular employment]
By region, the effective ratio of job offers to applicants reached a level exceeding 1.0 times in all
prefectures for the first time in history since the statistics have been collected. [Fig. 1-3]
For people younger than 55, the number of regular employment workers has increased for two
consecutive years, and in 2016 it increased to 28,050,000, exceeding the rate of increase of that of
non-regular employment workers. [Fig. 1-4]
The rate of involuntary non-regular employment workers has decreased from the same quarter of
the previous year for 13 consecutive quarters since the quarter of January to March 2014. [Fig. 1-5]
[Trends of wages]
The wages of full-time workers have increased for four consecutive years since 2013, and the
hourly wage of part-time workers has been on an increasing trend for six consecutive years since
2011, an increase of 67 yen from 2010 to 1,084 yen in 2016. [Fig. 1-6]
Part I: Trends and Features of the Labour Economy
i
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(Note) The numerical values in Fig. 1-3 are based on the place of employment.
1.45
2.13
0.94
2.82.5
3.0
3.5
4.0
4.5
5.0
5.5
0
0.5
1.0
1.5
2.0
2.5
3 7 11 3 7 11 3 7 11 3 7 11 3 7 11 3 7 11 3 7 11 3 7 11 3 7 11 3 7 11 3
2007 08 09 10 11 12 13 14 15 16 17
Fig. 1-2 Unemployment rate and effective ratio ofjob offers to applicants are steadily improving
Unemployment rate (right axis)
Ratio of new joboffers to applicants
Effective ratio of job offers toapplicants for regular employees
Effective ratio of joboffers to applicants
(Times) (%)
(Year/Month)
1.36
1.08
1.401.33
1.39
1.56 1.59
1.25
1.57
1.43
1.24
0
0.8
1.0
1.2
1.4
1.6
1.8
Fig. 1-3 Effective ratio of job offers to applicantsexceeded 1.0 times nationwide (2016)
(Times)
Exceeded 1.0 times in all regional blocks/prefectures
40.1
41.2
1,017
1,084
0
950
1,000
1,050
1,100
0
40
41
42
2007 09 11 13 15
Fig. 1-6 Wages of full-time workers increased for 4consecutive years and hourly wage of part-time workers
increased for 6 consecutive years(10,000 yen) (Yen)
Increased for 6consecutive years
(Year)
Increased for 4consecutive years
Hourly wage of part-timeworkers (right axis)
Monthly wage offull-time workers
1.0
1.3
-8
-6
-4
-2
0
2
4
6
2007 08 09 10 11 12 13 14 15 16
Fig. 1-1 Japanese economy is graduallyrecovering
Real GDP growth rate
Nominal GDPgrowth rate
(Change from theprevious year・%)
(Year)
Both the real and nominalGDP growth rates rose for 5
consecutive years
270
18.9
14.2
0
250
300
350
400
450
500
0
11
13
15
17
19
21
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ
2013 14 15 16 17
Fig. 1-5 Percentage of involuntary non-regular employment workers decreased
(%)
(Year/Quarter)
(10,000 persons)
Decreased from the samequarter of the previous year for
13 consecutive quarters
Number of involuntary non-regularemployment workers (right axis)
2,805
1,307
0
1,200
1,250
1,300
1,350
0
2,750
2,800
2,850
2,900
2007 08 09 10 11 12 13 14 15 16
Fig. 1-4 Regular employment workers increasedfor 2 consecutive years (younger than 55)
(10,000 persons) (10,000 persons)
Regular employment workers
Non-regular employment workers(right axis)
(Year)
ii
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[Current status of innovations in Japan]
When compared internationally, the current status of innovations in Japan is at a low level for bothmanufacturing and service industries. [Fig. 2-1]
In order to promote the realization of innovations, active capital investment in R&D anddevelopment of competent human resources (specialized human resources) are important. [Fig. 2-2]
[Challenges for promoting innovation activities]
In Japan, investments in R&D and development of new products are at a low level, and activeinvestments in these fields are important for realizing innovations. [Fig. 2-3]
In order to realize innovations, effective utilization of specialized human resources by conductingpersonnel evaluation based on the R&D results, etc. is important. [Fig. 2-4]
[Awareness of AI utilization and impacts of changes in industrial structure on employment]
Many companies utilize AI to make the existing work more efficient and less labour intensive, butonly a few utilize it to create new added values. [Fig. 2-5]
While workers engaged in the occupations mainly involving routine work are decreasing due tochanges in industrial structure, including the advancement of AI, etc., those engaged in technicalwork helping to create new added values are increasing. The impacts of AI on employment aretherefore considered to vary depending on the occupations, and thus efforts need to be made inunderstanding actual situations in the future. [Fig. 2-6]
(*) “AI” refers to “Artificial Intelligence”.
Part II Chapter 1: Relationship between Economic Growth andInnovation/Employment in Japan
iii
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35
190
-386
-500 -250 0 250 500
Occupations requiringtechniques
Occupations requiringhuman added values
Others, including occupationsmainly involving routine work,etc.
Fig. 2-6 Impacts of changes in industrial structure, includingthe advancement of AI, etc., on employment vary depending
on occupations(Increase and decrease of the number of workers till 2030 ・
10,000 persons)
37.0
26.5
24.5
18.5
15.0
0
10
20
30
40
50
60
Germany U.K. France U.S.A. Japan
Fig. 2-1 Percentage of realization of innovationsis low when compared internationally
Manufacturing industry
Service industry
All industries
(%)
(Note 1) The realization of innovations is defined as the “development of new products/services, introduction of new production/sales methods, and creation of new added values through theintroduction of new business management methods”.
(Note 2) The occupational categories in Fig 2-6 are provided by the MHLW, taking into consideration OECD (2016) “The Risk of Automation for Jobs in OECD Countries”, etc.
43.1
9.0 6.93.7
20.417.0
0
20
40
60
Cap
acityenhancem
ent
New
/advanced
prod
ucts
Ratio
nalization/
labour
saving
R&
D
Maintenance/rep
air
Others
1990s 2000s
Fig. 2-3 Investments in R&D and productdevelopment are at a low level
(%)
(Motives
forcap
italinvestm
ents)
44.0 43.033.0
70.061.0 59.0
0
20
40
60
80
R&
D
Acq
uisition
ofad
vanced
mach
ines,etc.
Ed
ucation/training
forem
ployees
Lack
ofcom
peten
tem
ployees
Pu
rsuit
ofim
med
iatesales/p
rofits
Lim
itedtech
nological
abilities
and
kn
ow-h
ow
Promotinginnovation activities
Obstructinginnovation activities
(%)
Fig. 2-2 R&D and utilization of competent humanresources are challenges for innovations
18.3
9.7
-0.7-3.9
-10
-5
0
5
10
15
20
Person
nel
evaluation
based
onth
eR
&D
results
Execu
tivesorigin
atedfrom
R&
Dsection
s
En
han
cemen
tofresearch
ers’au
thority
Re-em
ploym
ent
ofretired
researchers
Fig. 2-4 Reviewing organizational structureswithin companies focused on achievements is
importantPositive impacts on the
realization of innovations
High
(Rate
ofincrease
ofthe
probabilityof
realizationof
innovations)L
ow
Negative impacts on therealization of innovations(%)
iv
Fig. 2-5 Many companies intend to utilize AI for the existing work,but only a few intend to utilize it to create new added values
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[General situation of a work-life balance in Japan]
Although the percentage of workers working long hours of 60 or more per week is on a decreasing
trend, it still remains at a level exceeding 10%. In addition, the percentage of workers working long
hours in Japan is high when compared internationally. [Fig. 3-1]
Large percentages of both males and females, mainly in double-income households, are stressed in
their attempts at balancing work and family, and enhancement of efforts to realize a work-life
balance is a challenge. [Fig. 3-2]
[Effects of promotion of a work-life balance and status of efforts of companies]
Although many companies are working towards reducing overtime hours, those actually achieving
positive results are limited, and thus exercising more ingenuity is needed. [Fig. 3-3]
In order to make efforts more effective in achieving a work-life balance, placing a high value on
performing work in shorter hours and reviewing organizational structures are important. [Fig. 3-4]
[Prevalence of working style without being employed]
Working style without being employed are expected to prevail in the future. While such a way of
working is considered effective in achieving a work-life balance, there are issues concerning income
and skill development, etc. It is required to discuss how to respond to such working style in the
future. [Fig. 3-5, Fig. 3-6]
Part II Chapter 2: Changes in Environment Surrounding Working Style andRealization of Work-Life Balance
v
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Yes(92.6%)
No(6.8%)
No answer(0.6%)
Fig. 3-3 Approx. half of companies reducedworking hours by efforts to reduce overtime
68.5
71.570.4
65.8
78.9
63.4
0
70
80
Males
Fem
ales
Wife
isa
regularem
ployee
Wife
isnot
working
(full-time
housewife)
Person
herselfis
aregular
employee
Person
herselfis
notw
orking(full-tim
ehousew
ife)
Total Males Females
Fig. 3-2 Large percentages of both males and females, mainly indouble-income households, are stressed from their attempts at
balancing work and family(%)
(Percen
tageof
peop
leb
eing
stressedfrom
their
attemp
tsat
balan
cingw
orkan
dfam
ily)
21.9
11.713.0
12.0
0
5
10
15
20
25
30
0
2
4
6
8
10
12
14
16
18
20
2000 02 04 06 08 10 12 14 16 Japan U.S.A. OECDaverage
Fig. 3-1 More than 10% of workers working at least 60 hours perweek remain, and the ratio of workers working long hours is high
when compared internationally
(Year)
Percentage of workers working atleast 60 hours per week among thoseworking at least 35 hours per week
(%) (%)
Percentage of employeesworking at least 50 hours
per week (right axis) 52.8
45.9
0 20 40 60
Reduced
No change(including “not sure”)
(Effectiveness (actually reduced or not))
55.3
26.7 26.6 26.2 24.5
0
20
40
60
80
100
Can
freelychoo
sed
esirable
work
Can
spendtim
ew
itho
ne’sfam
ily/
for
childcare
andnursin
g
No
annoyin
ghum
anrelations
Sho
rtw
orkingho
urs/com
mutin
gtim
e
Can
choose
thep
laceto
wo
rk
Fig. 3-5 Working style without being employedare effective for realizing a work-life balance
(%)
(Reason
sfor
satisfactionw
ithw
orkin
gstyle
with
out
bein
gem
ployed
)
89.8
31.4
9.8 8.8 8.6
0
20
40
60
80
100
Incom
e(no
payraise/unstable
income,
etc.)
Cannot
developskills/
unclearfuture
prospects
Cannot
freelychoose
desirablew
ork
Work
fluctuation
Long
working
hours/comm
uting
time
Fig. 3-6 Issues concerning income and skilldevelopment exist with working style without
being employed(%)
(Reason
sfor
dissatisfaction
with
work
ing
stylew
ithou
tb
eing
emp
loyed)
22.8
18.717.3 16.8
15.9
0
5
10
15
20
25
Placing
ahigh
valueon
performing
highquality
work
inshorter
hours
Establishing
asystem
thatallow
sothers
tow
orkin
substitution
when
thepersons
incharge
areabsent
Prohibiting
meetings
outsideof
office
hours
System
sin
which
superiorsw
hohave
reducedlong
working
hourso
ftheir
subordinatesare
highlyevaluated
Providing
guidanceto
superiors
who
haveallow
edlong
working
hours
(%)
Fig. 3-4 Placing a high value on hours worked andreviewing work distribution are effective in
reducing overtime
vi
(Differen
ceb
etween
effortsth
atw
orkers
consid
ereffective
inred
ucin
govertim
ean
defforts
actually
taken
)
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2017
Analysis of the Labour Economy
― Challenges for Promoting Innovations andRealizing Work-Life Balance ―
〔 Overview 〕
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Part I: Trends and Features of the Labour Economy― Employment situation [1] ―
Source: Prepared based on “Report on Employment Service”, MHLW (middle figure and right figure); “System of National Accounts”, Cabinet Office (left figure); and“Labour Force Survey”, Statistics Bureau (MIC) (middle figure)
While the Japanese economy is gradually recovering, employment situation is steadily improving: the FY2016 average unemploymentrate was 3.0%, the lowest rate in 22 years since FY1994, and the effective ratio of job offers to applicants was 1.39 times, the highestratio in 26 years since FY1990 and so forth.
By region, the effective ratio of job offers to applicants increased in all regional blocks and reached a level exceeding 1.0 times in allprefectures.
1.36
1.08
1.40
1.33
1.39
1.561.59
1.25
1.57
1.43
1.24
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Effective ratio of job offers toapplicants by region
2015 2016
(Times)
Exceeded 1.0 times in all regional blocks/prefectures
1.0
1.3
-8
-6
-4
-2
0
2
4
6
2007 08 09 10 11 12 13 14 15 16
Transition of the real/nominal GDPgrowth rate
Real GDP growth rate
Nominal GDP growth rate
(Change from theprevious year・%)
(Year)
Both the real and nominalGDP growth rates rosefor 5 consecutive years
1.45
2.13
0.94
2.8
2.5
3.0
3.5
4.0
4.5
5.0
5.5
0
0.5
1.0
1.5
2.0
2.5
1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1 7 1
2007 08 09 10 11 12 13 14 15 16 17
Unemployment rate/effective ratio of joboffers to applicants
Unemployment rate (right axis)
Ratio of new joboffers to applicants
Effective ratio of job offers toapplicants for regular employees
Effective ratio ofjob offers toapplicants
(Times) (%)
(Year/Month)
1
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Part I: Trends and Features of the Labour Economy― Employment situation [2] ―
Source: Prepared based on “Labour Force Survey” (left figure); and “Labour Force Survey (Detailed Tabulation)” (upper right figure and lower right figure), Statistics Bureau (MIC)(Note) “Transfer to regular employment” in the lower right figure indicates the number calculated by subtracting the “Number of persons transferred from regular to non-regular employment”
from the “Number of persons transferred from non-regular to regular employment”.
For people younger than 55, the number of regular employment workers has increased for two consecutive years, and in 2016 itincreased to 28,050,000, exceeding the rate of increase of that of non-regular employment workers.
The rate of involuntary non-regular employment workers has decreased from the same quarter of the previous year for 17 consecutivequarters, and the rate of transfer from non-regular employment to regular employment has increased for 17 consecutive quarters sincethe quarter of January to March 2013.
2,805
1,307
1,000
1,100
1,200
1,300
1,400
1,500
2,600
2,700
2,800
2,900
3,000
3,100
2002 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Transition of the number of employees by employmentstatus (younger than 55)
(10,000 persons)
(Year)
(10,000 persons)
Regular employment workers
Non-regular employment workers (right axis)
270
14.2
200
250
300
350
400
450
500
11
13
15
17
19
21
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ
2013 14 15 16 17
Transition of the ratio of involuntary non-regularemployment workers
(%)
(Year/Quarter)
(10,000 persons)
Decreased from the same quarter of theprevious year for 13 consecutive quarters
Number of involuntary non-regularemployment workers (right axis)
-3
1015
8
15
-10
0
10
20
30
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ
2012 13 14 15 16 17
Transition of transfer to regular employment (age 15-54)(10,000 persons)
(Year/Quarter)
Annual average
Continue to be positive for 17 consecutive quarters
2
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Part I: Trends and Features of the Labour Economy― Trends of wages ―
Source: Prepared based on “Monthly Labour Survey”, MHLW
Nominal wages in FY2016 increased for three consecutive years mainly due to the increase in full-time workers' scheduled wages.
Nominal wages of full-time workers have been increasing for four consecutive years since 2013.
The hourly wage of part-time workers has also increased for six consecutive years since 2011, an increase of 67 yen from 2010 to 1,084yen.
41.2 41.2
39.8
40.2 40.240.1
40.3
40.640.8
41.2
39
40
41
42
2007 08 09 10 11 12 13 14 15 16
Transition of wages of full-time workers
(Year)
(10,000 yen)
Increased for 4 consecutive years
982
1,0091,019 1,017 1,020
1,0281,039
1,0531,068
1,084
900
950
1,000
1,050
1,100
2007 08 09 10 11 12 13 14 15 16
Hourly wage of part-time workers(yen)
(Year)
Increased for 6 consecutive years
0.5
▲0.2
▲1.0
▲0.3
0.5
0.2
0.4
-2
-1
0
1
2
2010 11 12 13 14 15 16
Transition of wages
Contribution of the ratio of part-time workers
Contribution of the total sum of cash earnings of part-time workers
Contribution of the special wages of full-time workers
Contribution of the non-scheduled wages of full-time workers
Contribution of the scheduled wages of full-time workers
(Percentage change・%)
Percentage change from the previous year of the total
sum of cash earnings of all workers
(FY)
3
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Improvement of labour productivity
Complementing labour force by AI, etc.(Improving work efficiencies)
Increasing the added value ofindustries
Increasing options for working style(Realizing employment of those with
constraints such as childcare andnursing, etc.)
Elimination of supply constraints
Realization of economic growth under supply constraints
○ Declining economic growth rate○ Supply constraints due to the decline in birthrate and demographic aging
Advancement of innovations
Responding to diversified workstyles of females, etc.
[1] Improvement of added values [2] Realization of work-life balance
Dealing with both as “two halves of the whole”
Part II: Promotion of Innovations and Challenges for Realizing Work-Life Balance
[Current status in Japan]
4
Enhancement of skillsdevelopment
/Utilization of human resources
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Current status of economic growth in Japan ―
The GDP growth rate has remained at a low level of less than 1% when compared to other major countries since the 2000s.
While the contributions of increase in labour and capital inputs are weakening, the TFP increase rate, for which the relationship with theGDP growth rate is becoming stronger, is slowing down. In addition, the TFP increase can be anticipated even where large increase inlabour input cannot be expected.
Source: Prepared based on OECD.Stat(Note) TFP (Total Factor Productivity) refers to growth factors other than capital and labour inputs (e.g., innovations, etc.) when the economic growth is decomposed.
0
100
110
120
130
140
2000 02 04 06 08 10 12 14 15
Transition of the GDP growth rate(Year 2000 = 100)
(Year)
Japan
U.S.A.
GermanyFrance
U.K.
Japan
U.S.A. Japan
U.S.A.(2001-2014)
y = 1.219x + 0.8619(2.55)
R² = 0.3328
(1986-2000)y = -0.0541x + 2.8765
(-0.17)R² = 0.0022
-1
0
1
2
3
4
5
-1.0 -0.5 0 0.5 1.0 1.5 2.0 2.5
(GD
Pgro
wth
rate)
(Increase rate of TFP)
Correlation between GDP and TFP 01-14 86-00
(%)
(%)
Japan
U.S.A.
(TFP 1986-2014)y = -1.0393x + 1.4363
(-1.43)R² = 0.1365
-1
0
1
2
3
4
0 0.5 1.0 1.5 2.0
(Increased
rateo
flab
ou
rin
pu
t)
(Increase rate of TFP)
Correlation between labour input and TFP(%)
(%)
1.7 1.30.5
0.3
-0.7 -0.4
3.0
0.5
0.7
-1
0
1
2
3
4
5
6
1980s 1990s 2000s
Breakdown of contribution of added values
Contribution of TFP
Contribution of labour input
Contribution of capital input
(%)
GDP growth rate
5
GDP growth rate (avg.)France 1.3Germany 1.3Japan 0.8U.K. 1.9U.S.A. 1.9
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Importance of innovations and status in Japan ―
Realizing innovations is important for improving TFP.
When compared internationally, the current status of innovations in Japan is at a low level for both manufacturingand service industries.
Source: Prepared based on “Report on the Fourth Round of the Japanese National Innovation Survey” (2016), National Institute of Science andTechnology Policy (MEXT) (right figure); OECD.Stat (left figure); and “Innovation statistics and indicators”, OECD (right figure)
(Notes) 1) The percentage of realization of innovations refers to the percentage of companies that realized innovations during the reference period: 2012-2014 forJapan, 2008-2010 for U.S.A., and 2010-2012 for other countries.
2) The right figure shows the status of realization of product innovations.
U.K.
Germany
Japan
France
(2013-2014)y = 0.0305x - 1.179
(2.65)R² = 0.3338
-1.0
-0.5
0
0.5
1.0
1.5
2.0
20 40 60 80 100
(Increaserate
of
TF
P)
(Percentage of realization of innovations)
Correlation between innovations and TFP(%)
(%)
6
44.0
28.0 28.0
23.3
19.0
30.0
25.0
21.0
13.811.0
37.0
26.524.5
18.5
15.0
0
10
20
30
40
50
60
Germany U.K. France U.S.A. Japan
Status of realization of innovations
Manufacturing industry
Service industry
All industries
(%)
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Challenges for realizing innovations ―
The factors in promoting innovation activities include R&D and acquisition of advanced machines, etc.
The lack of competent human resources has been an obstructive factor for innovation activities, and making effortsin securing human resources is important.
70
6159 58 58 58
52
48
44
0
50
60
70
80
Lack
ofcom
petentem
ployees
Pursuit
ofim
med
iatesales/p
rofits
Lim
itedtechnological
abilitiesand
know-how
Uncertain
dem
andfor
newproducts/services
Intensem
arketcom
petition
Lack
ofgood
ideas
Stable
ordersfrom
theexisting
customers
Difficulty
infinding
cooperationpartners
Lack
ofinternal
funds
Obstructive factors for innovation activities(business establishment survey)
(%)
44 43
33
21
1715 14
0
10
20
30
40
50
R&
D
Acquisition
ofadvancedm
achines,etc.
Education/train
ingfo
rem
ployees
Marketing
activities
Oth
eractivities
Design
activities
New
utilizationof
advancedIT
services
Promoting factors for innovation activities(business establishment survey)
(%)
Source: Prepared based on “Report on the Fourth Round of the Japanese National Innovation Survey” (2016), National Institute ofScience and Technology Policy (MEXT)
7
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Importance of capital investments for realizing innovations ―
The trend toward obsolescence is rising in Japan, and the fact that investments in product development and R&D aresmall has been a factor obstructing the advancement of innovations.
It has been observed that the relationship is such that the more R&D advances, the easier it is to innovate, andadvancing R&D aimed at creating new business and enhancing technology platforms is important.
U.K.
Germany
France
Japan
0
20
30
40
0 10 11
(Percen
tageof
realizationof
inn
ovations)
(Obsolescence)
Relationship between the percentage of realization ofinnovations and obsolescence
(%)
(Year)
The obsolescence is high, and the percentageof realization of innovations is low
The obsolescence is low, and the percentageof realization of innovations is high
20.6 16.1 10.2 16.9 11.3
37.0
26.5 24.5
18.515.0
0
10
20
30
40
Germany U.K. France U.S.A. Japan
Relationship between the increase rate of R&D expenses andthe percentage of realization of innovations
Increase rate of R&D expenses Percentage of realization of innovations
(%)
66.0
32.048.0 48.0
0
20
40
60
80
Enhancement of existing businesses Creation of new business and enhancement ofown technology platforms
Objectives of R&D
Japan U.S.A.
(%)49.7
7.38.3
4.214.2 16.4
43.1
9.0 6.93.7
20.4 17.0
0102030405060
Cap
acityen
han
cemen
t
New
/advan
cedp
rodu
cts
Ration
alization/laboursavin
g
R&
D
Main
tenance/rep
air
Oth
ers1990s
2000s
Motives for capital investments(company survey)
(%)
Source: Prepared based on “National Wealth Survey”, Cabinet Office (upper left figure); “Report on the Fourth Round of the Japanese National Innovation Survey”(2016), National Institute of Science and Technology Policy (MEXT) (upper left figure and upper right figure); “The R&D Process in the U.S. and Japan:Major findings from the RIETI-Georgia Tech inventor survey” (2009) (lower right figure) and “JIP Database 2015” (upper left figure), Research Institute ofEconomy, Trade and Industry; “Survey on Planned Capital Spending” Development Bank of Japan (lower left figure); EU KLEMS database (upper leftfigure); “Innovation statistics and indicators”, OECD (upper left figure); and OECD.Stat (upper right figure)
(Note) The reference period in the percentage of realization of innovations: FY2012-2014 for Japan, 2008-2010 for U.S.A., and 2010-2012 for other countries. 8
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Importance of utilizing advanced human resources for the realization of innovations ―
In Japan, education/training is not conducted in 60% or more of companies, and promotion of education/training is important forrealizing innovations.
Utilizing advanced human resources such as graduates from doctoral programs is effective for realizing innovations, but the percentageof these graduates is low in Japan, and recruitment that takes into consideration specialized knowledge and research content has notbeen accomplished.
U.K.
Germany
Japan U.S.A.
y = 7.8232x + 7.6461R² = 0.4571
0
10
20
30
40
50
0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
(Percentage
ofrealizationof
innovations)
(Percentage of graduates from doctoral programs)
Relationship between the percentage of graduates fromdoctoral programs and the percentage of realization of
innovations(%)
(%)
3.12.7
2.4
1.2
3.22.9 2.7
0.50
1
2
3
4
Eagerness/w
illingness
Ability
totake
action/getthings
done
Com
municatio
nskills
Specialized
knowledge/resea
rchcontent
Matters in which emphasis is on recruitment(company survey) Graduates of doctoral
programs
Graduates ofuniversities/master’sprograms
Greater
imp
ortan
ce
(Point)
Source: Prepared based on “Report on the Fourth Round of the Japanese National Innovation Survey” (2016), National Institute of Science and Technology Policy (MEXT) (left and upper right figure);“Questionnaire Survey of Corporate Recruitment and Employee Education” (2012), Japan Association of Corporate Executives (lower right figure); and “Innovation statistics andindicators”, OECD (upper right figure)
(Notes) 1) The left figure shows the percentage of implementing education/training by counting companies that answered “High importance” or “Medium importance” to the question about the degreeof importance of the obstructive factor of lack of competent employees for realizing innovations as “Yes” and those that answered “Low importance” or “No importance” as “No”.
2) The reference period in the percentage of realization of innovations in the upper right figure: FY2012-2014 for Japan, FY2012-2013 for Australia, 2009-2010 for Chile, 2008-2010 forU.S.A., and 2010-2012 for other countries. 9
34 31
66 69
0
10
20
30
40
50
60
70
80
90
100
Yes No
Experience of innovations being obstructed by lack of competent employees
Relationship between the experience of innovations beingobstructed by lack of competent employees and the percentage of
implementing education/training for employeesEducation/training is implementedEducation/training is not implemented
(%)
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Efforts for effective utilization of human resources ―
Introduction of personnel evaluation based on the R&D results and discretionary labour system is important for the realization ofinnovations.
In introducing such employment systems, efforts such as conducting appropriate personnel management to prevent long working hoursare also important.
18.3
9.7
-0.7
-3.9
-10
-5
0
5
10
15
20
Person
nelevalu
ationb
asedon
the
R&
Dresu
lts
Ex
ecutives
originated
fromR
&D
sections
En
han
cementof
researchers’
auth
ority
Re-em
ploym
ent
ofretired
researchers
Increase rate of the probability of realization ofinnovations and concrete measures(In
creaserate
ofth
ep
robab
ilityof
realizationof
inn
ovations)
(%)
37.9
22.9
0
10
20
30
40
50
Introduced Not introduced
Introduction of discretionary labour system andpercentage of realization of innovations
(%)
Source: Prepared based on “Effects of Organizational/Personnel Management in R&D Activities on Innovations” (2016), National Institute of Science andTechnology Policy (MEXT) (left figure) and questionnaire information of “Survey on Status of Responding to Innovations” (2017), The JapanInstitute for Labour Policy and Training (right figure)
(Note) The numerical values in the left figure indicate the increase rate of the probability of realization of innovations when each measure is implemented.10
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Changes in workers associated with innovations ―
Industries are becoming more service-oriented in Japan, and by occupation, the percentage of workers engaged inclerical work and specialized/technical work is increasing.
The percentage of female researchers remains at a low level when compared to other countries.
155.5
186.0
193.7
338.8
0
50
100
150
200
250
300
350
1970 75 80 85 90 95 2000 05 10 14
Changes in the number of workers/employees(U.S.A)(Year 1970 = 100)
(Year)
Personsengaged inmanufacturi
ng,production,
machineoperation,
andconstruction
29.7%
Personsengaged inagriculture,
forestry, andfishery17.3%
Personsengaged in
clerical work14.8%
Personsengaged in
sales13.0%
Personsengaged in
security andservices
7.6%
Personsengaged inspecialized/
technicalwork5.8%
Others11.9%
[1970]
Personsengaged in
clerical work19.7%
Personsengaged inspecialized/
technicalwork
16.5%Persons
engaged inproductionprocesses
13.9%
Personsengaged in
sales13.4%
Personsengaged in
services12.3%
Others24.2%
[2015]
Transition of the number of workersby occupation
Source: Prepared based on “Labour Force Survey”, Statistics Bureau (MIC) (middle figure); “National Accounts Main Aggregates Database”, UN (left figure); and“Education at a glance 2016”, OECD (right figure)
123.9
168.0
307.4
0
50
100
150
200
250
300
350
1970 75 80 85 90 95 2000 05 10 13
Changes in the number of workers/employees(Japan)
WorkersEmployees
Population
GDP growth rate
(Year 1970 = 100)
123.5(Population in 2010)
(Year)
122.7
11
15.3
26.1
37.4
45.6
33.1
0 10 20 30 40 50
Japan
France
U.K.
Italy
OECDaverage
(%)
Ratio of female researchers(international comparison)
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Changes in workers based on skills ―
By skill, polarization is advancing in Japan, and the number of workers in low-skilled occupations is increasing when compared toU.S.A.
The reasons for the increase in the number of workers in low-skilled occupations are considered to be the failure to keep up with the ITrevolution and the increase in non-regular employment workers due to diversified working styles.
18.4
-13.6
140.4
-20
0
20
40
60
80
100
120
140
160
Changes in the number ofworkers by skill (Japan)(%)
24.2
-11.9
7.8
-20
-15
-10
-5
0
5
10
15
20
25
30
Changes in the number of workersby skill (U.S.A.)
(%)
100.0
144.7
46.1
100.0
142.1
184.7
0
50
100
150
200
Early stage Middle stage Late stage
Difference in GDP in manufacturing industry andinformation and communications industry
between Japan and U.S.A.Manufacturing industry
Information and communications industry
(Early stage=100)
22.0
39.2
52.3
13.0
25.7 28.0
0
10
20
30
40
50
60
Percentage of non-regular employment workers by skill
2012 1997
(%)
Source: Prepared based on “Basic Survey on Employment Structure” (lower right figure) and “Labour Force Survey” (left figure), Statistics Bureau (MIC); OECD.Stat(upper right figure); EU KLEMS (upper right figure); IMF stat (upper right figure); and “Labor Force Statistics from the Current Population Survey”, Bureau ofLabor Statistics, US Department of Labor (middle figure)
(Notes) 1) In the upper right figure, the early, middle, and late periods of the manufacturing industry refer to 1980, 1985, and 1990, and those of the Information andcommunications industry refer to 2000, 2005, and 2014, respectively.
2) Here the occupations requiring complex work are expressed as high skill and those requiring routine work as low skill.3) The left and middle figures show the increase rate from 1995 to 2015.
High LowDifficulty of skill
High LowDifficulty of skill
High LowDifficulty of skill
12
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45.3
-15.0
4.7
27.0
-78.5
46.5
107.9
35.7
-0.5
-38.4
-187.1
-36.7
1.6
-73.6
-250 -200 -150 -100 -50 0 50 100 150
Engineers
Specialized work
Creative work
Managerial work
Clerical post
Sales
Home helpers, etc.
Service
Security
Agriculture, forestry, and fishery
Production processes
Transportation, etc.
Construction, etc.
Cleaning, etc.
Changes in the number of workers by occupations
(10,000 persons)
Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Impacts of the advancement of AI, etc. on employment ―
As one impact that AI brings to workplaces, labour productivity is expected to improve through reduced working hours and improvedwork efficiencies, but only a few companies utilize AI to create new added values.
The advancement of AI is expected to change the way of employment, but employees engaged in occupations requiring techniques andhuman added values, etc. will increase.
-225
-161
-160
-1
-300 -200 -100 0
Labour forcepopulation
Total of all industries
Manufacturing
Non-manufacturing
(10,000 persons)
Changes in the labour force populationand the number of workers
35
190
-386
-500-400-300-200-100 0 100 200 300
Occupations requiringtechniques
Occupations requiringhuman added values
Others, including occupationsmainly involving routine work,etc.
Changes in the number of workers by skill
(10,000 persons)
67.554.4
43.0 36.826.3
12.3 9.6
0
20
40
60
80
Impro
vingefficiency/pro
ductivityo
fexisting
wo
rk
Saving
existinglabo
urfo
rce
Impro
vingvalues
provided
byexisting
wo
rk
Supplem
entinginsufficient
labour
force
Creating
wo
rkw
ithnew
values
Increasingm
otivatio
nto
engagein
andsatisfactio
nw
ithnew
wo
rk
Increasingm
otivatio
nto
engagein
andsatisfactio
nw
ithexisting
wo
rk
(%) Possible roles/functions of AI
78.1 78.1 51.7
83.4 79.470.2
0
20
40
60
80
100
Reduced working hours Increased work efficiency Reduced scope of work
Impacts of the introduction of AI on workplaces Company survey
Employee survey(%)
Source: Prepared based on “Interim Report on the New Industrial Structure Vision - Japan's Strategy to lead the fourth industrial revolution” (2016), METI (lower figure); and “Estimate oflabour force demand and supply - Preliminary Calculations by Prefecture Based on New National Estimate (2015 edition)” (lower figure), “Survey on Status of Responding toInnovations” (2017) (upper left and upper right figure), and “Survey on Working Style for Responding to Innovations” (2017) (upper left figure), The Japan Institute for LabourPolicy and Training
(Note) “Employee survey” in the upper left figure refers to the survey on regular employees. 13
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Part II Chapter 1: Relationship between Economic Growth and Innovation/Employment in Japan― Abilities required for workers in the age of advanced AI ―
The skills required in the age when AI is commonly used include the ability to understand the possibility of AI and make full use of itand communication skills that cannot be replaced by AI, and improving these skills will be important in the future.
While both companies and employees do not have much sense of danger about the prevalence of AI, raising their awareness is needed.
21.8
58.9
0
10
20
30
40
50
60
70
Job
su
nlikely
toreq
uire
com
mu
nicatio
nskills
Job
sreq
uirin
gco
mm
un
ication
skills
Jobs needs to be performedby humans
Source: Prepared based on “Survey on Status of Responding to Innovations” (2017) (middle figure and right figure), “Survey on Working Style for Responding toInnovations” (2017) (middle figure and right figure), The Japan Institute for Labour Policy and Training; and “The Effects of AI and Robotics on Business andEmployment: Evidence from a Survey on Japanese Firms” (2016), Morikawa (left figure)
(Notes) 1) In the left figure, “Jobs unlikely to require communication skills” refers to driving vehicles, etc. and “Jobs requiring communication skills” refers to nurseryservices, medical services, and education, etc.
2) “Employee survey” in the middle and left figures refers to survey on regular employees.
(%) (%)
(%)71.6
45.2
39.3
29.7
21.4 20.9
72.6
41.836.6
22.424.6
20.0
0
10
20
30
40
50
60
70
80
Ru
dim
entary
kn
owled
gefor
correctlyu
nd
erstanding
the
values
and
possib
ilitiesof
AI
Tech
nological
kn
owled
gefor
correctlyu
nd
erstanding
the
values
and
possib
ilitiesof
AI
Creativity
and
design
ability
tocon
sider
the
meth
ods
ofu
tilizing
AI
Sk
illfor
imp
lemen
ting
AI
invariou
ssystem
s
Basic
skills
forread
ing/w
riting
program
sto
createA
I
Ad
vanced
program
min
g,design
ability,d
ataju
dgm
ent
forsearch
ing/p
ursuing
various
possib
ilitiesof
AI
Skills required in the age when AI is commonly used
Company survey
Employee survey
19.9
33.6
46.6
22.0
34.3
43.7
0
5
10
15
20
25
30
35
40
45
50
Less than 10years
10 years fromnow
More than 10years
Period when AI is introduced inthe company
Employee survey
Company survey
14
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Source: Prepared based on “Monthly Labour Survey”, MHLW (left figure); “Labour Force Survey”, Statistics Bureau (MIC) (middle figure); and OECD.Stat (right figure)
13.0
21.9
12.811.7
7.8
5.0
0
5
10
15
20
25
Total ofOECD
membercountries
Japan U.K. U.S.A. France Germany
Percentage of workers working long hours(international comparison)
(%)
Percentage of employeesworking at least 50 hoursper week
Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Current status surrounding a work-life balance, including long working hours ―
168.8 168.7
154.4
143.7
20.31
30.7
0
5
10
15
20
25
30
35
130
140
150
160
170
180
190
2000 05 10 16
Total of all workers
Ratio of part-time workers (right axis)
(Number of hours)
Transition of work hours
(Year)
(%)
Full-time workers
17.6
13.412.7
12.0
0
2
4
6
8
10
12
14
16
18
20
2000 05 10 15 16
Percentage of workers working long hours(total of males and females)
(Year)
(%)
Percentage of workers working atleast 60 hours per week among thoseworking at least 35 hours per week
15
While the number of working hours of full-time workers remains stable, the number of workers working long hours is decreasing, but
still remains over 10%. In addition, the percentage of workers working long hours in Japan is high when compared internationally.
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Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Changes in environment surrounding working style and increase in number of double-income households ―
With the progress of labour participation of females in the child-rearing generation, the participation rate of females with households isrising, and double-income households are increasing.
Female’s awareness about employment has changed, and those hoping to work even if their husbands have high income and thosewilling to continue to work even when they have children are increasing.
46.6
61.359.4
67.468.774.1
16.9 19.7
0
10
20
30
40
50
60
70
80
2006 16
Participation rate of females with households(%)
Age 45 to 54
Age 35 to 44
Age 25 to 34
65 or older
(Year)
59.8 62.968.1
48.9
90.7
73.9
93.3
71.8
30.9
15.8
0
20
40
60
80
100
Males Females Males Females Males Females Males Females
Total Age 25 to 34 Age 35 to 44 65 or older
Changes in the employment rate
2000 2016(%)
0
50
60
70
80
Less than 2 million At least 2 million,but less than 5 million
At least 5 million,but less than 10 million
At least 10 million
Employment rate of wives by income level ofthe husbands
(%)
2016
2011
20022006
(Yen)
4.1 3.37.8 4.6
10.4 8.3
33.1
54.4
37.6
26.2
0
10
20
30
40
50
60
2000 02 04 07 09 12 14 16
Transition of awareness aboutemployment of females
(%) Females shouldcontinue to work evenwhen they have children
Females should stopworking when theyhave children, and startworking again whenchildren get older
Females shouldcontinue to work untilthey have children
Females shouldcontinue to work untilthey are married
Females should notwork
(Year)
Source: Prepared based on “Public Opinion Survey on a Gender-Equal Society” (2016), Cabinet Office (lower right figure); and “Labour Force Survey” (upper leftfigure and lower left figure) and “Labour Force Survey (Detailed Tabulation)” (upper right figure), Statistics Bureau (MIC)
16
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Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Challenges in balancing work and family ―
Those working longer hours tend not to realize a work-life balance, and husbands/wives in double-income households are morestressed than those in full-time housewife households, and therefore efforts for realizing a work-life balance are important.
As the baby boomer generation (those born in 1947-1949) turns 75 years old in the years to come, the nursing care needs of the babyboomer junior generation (those born in 1971-1974) who are the bearers of employment will increase.
68.5
70.4
68.5
65.8
71.5
78.9
71.7
63.4
0
65
70
75
80
Total
Wife
isa
regular
emp
loyee
Wife
isa
non
-regular
emp
loyee
Wife
isn
otw
orkin
g(fu
ll-time
hou
sewife)
Total
Person
herself
isa
regular
emp
loyee
Person
herself
isa
non
-regular
emp
loyee
Person
herself
isn
otw
orkin
g
Males Females
Stress conditions of a balance betweenwork and family
Being stressed
(%)
Source: Prepared based on “Individual/Company Survey on Work-Life Balance” (2014), Cabinet Office (left figure); “2015 Population Census”, Statistics Bureau (MIC)(right figure); and “National Employment Situation Panel Survey” (2016), Recruit Works Institute, Recruit Holdings (middle figure)
973 964
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Ag
e15
to19
Ag
e20
to24
Ag
e25
to29
Ag
e30
to34
Ag
e35
to39
Ag
e40
to44
Ag
e45
to49
Ag
e50
to54
Ag
e55
to59
Ag
e60
to64
Ag
e65
to69
Ag
e70
to74
75
orold
er
(10,000 persons)
Population by age group
41.8
29.4
58.2
70.6
0
20
40
60
80
100
Less than 10 hours 10 hours or more
Matching status between expectedand actual work-life balance (regular
employees)
Expected status and actual status do not match
Expected status and actual status match(%)
(Daily work hour)
17
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Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Effectiveness of efforts to realize a work-life balance ―
It has been observed that the relationship is such that the shorter the working hours, the higher the labor productivity, and thereforereducing working hours is important.
By advancing efforts to realize a work-life balance, increased income and lower turnover rate can be expected.
Tokyo
Osaka
Okinawa
y = -6.0606x + 15515(-4.3) (6.2)R² = 0.293
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1,600 1,700 1,800 1,900 2,000
(Lab
our
pro
ductivity)
(Number of hours worked)
Relationship between work hours and labourproductivity (by prefecture • 2013)
(Number of hours)
(Yen)
34.4
52.6
37.0
49.3
0
10
20
30
40
50
60
Decreased
Increased
Decreased
Increased
Yes No
(%)
Sales by status of receivingcertifications/awards, etc.
Source: Prepared based on “Monthly Labour Survey (Prefectural Survey)”, MHLW (left figure); “System of National Accounts”, Cabinet Office (left figure);and questionnaire information of “Survey on Effects of Companies’ Employment Management on Business Operations” (2015), Mitsubishi UFJResearch and Consulting (middle figure and right figure)
30.9
56.6
0
10
20
30
40
50
60
Yes No
(%)
Turnover rate by status of receivingcertifications/awards, etc.
18
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69.1 66.155.1 50.0 45.0 43.1 42.3 38.3
26.0 24.217.1
12.0 10.3 6.7 1.9 0.10
20
40
60
80
Un
derstan
din
gactu
alsitu
ations
(actual
work
hou
rs,etc.)
Alertin
gan
dp
rovidin
gad
viceto
work
ersw
orkin
glon
gh
ours
and
their
sup
eriors
Review
ing
the
conten
t/division
ofw
ork
Introd
ucin
gan
advan
cen
otificationsystem
forovertim
ew
ork
Gran
ting
comp
ensatory
days
offfor
work
ing
onh
olidays
Establish
men
tofn
oovertim
ew
orkd
ays
Secu
ring
app
ropriate
person
nel
Raisin
gaw
areness
byen
courag
emen
tfromth
etop
man
agem
entan
din
trodu
cing
busin
essstrateg
ies
Prom
oting
the
utilization
ofn
on-reg
ular
emp
loyeesan
dou
tsourcin
g
Provision
oftrain
ing
and
raising
awaren
esson
work
hou
rm
anag
emen
tand
health
main
tenan
cefor
man
agers
Hold
ing
discu
ssions
atcom
mittees,
etc.
An
nou
ncin
gclosin
gtim
evia
pu
blicad
dress
system,
etc.
Provision
oftrain
ing
and
raising
awaren
esson
work
hou
rm
anag
emen
tand
health
main
tenan
cefor
non
-m
anag
ers
Man
datory
ligh
ts-offan
dp
ower
offof
allP
Cs
aton
ce
Oth
ers
No
answ
er
Content of concrete efforts of companies that reduced overtimework hours
(%)
52.8
45.9
1.3
0 10 20 30 40 50 60 70
Reduced
No change (including “not sure”)
No answer
Effectiveness (actually reduced or not)(%)
Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Effective efforts to reduce long working hours ―
Many efforts have been taken to reduce long working hours, but the actual effects are limited.
Although companies that reduced long working hours have taken such efforts as understanding the actual conditions, efforts that areconsidered effective such as “placing a high value on performing high quality work in shorter hours” and “establishing a system thatallows substituting work” have not been sufficiently implemented, and therefore implementing these efforts in addition would be moreeffective.
Yes(92.6%)
No(6.8%)
Noanswer(0.6%)
Efforts to reduce overtime work hours(Of companies that answered “Yes”)
Source: Prepared based on “Individual/Company Survey on Work-Life Balance” (2014), Cabinet Office (lower right figure); and “Survey on Working HoursManagement and Efficient Work Styles” (2015), The Japan Institute for Labour Policy and Training (upper figure and lower left figure)
19
0
10
20
30
Placing
ahigh
valueon
performin
ghigh
qualityw
orkin
shorterhours
Establishing
asystem
thatallow
sothers
tow
ork
insubstitutio
nw
henthe
personsin
chargeare
absent
Prohibiting
meetings
outsideof
officehours
System
inw
hichsuperiors
who
havereduced
longw
orkinghours
of
theirsub
ordinatesare
highlyevaluated
Punishm
ents/penaltiesto
superiorsw
hohave
allowed
longw
orkinghours
Lim
itingthe
time
andnum
berof
meetings
(settingthe
upperlim
itto
onehour,
etc.)
Mandatory
lights-off
inoffices
Rem
indin
gby
superiors
Establishing
scheduledno
overtime
work
days
Introducinga
managem
entsystem
ofentering
andleaving
time,
andalerting
Efforts that workers consider effective in reducing overtime
Effective efforts Efforts actually taken
(%)
Difference between effective effortsand efforts actually taken
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Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Status and Efforts of balancing housework/child care and work ―
There is almost no difference in the number of hours husbands spend in housework between double-income households and full-time housewife households.
The percentage of males wishing overtime work hours to be reduced so that they can engage in housework/child care is high, mainly among workers workinglong hours.
Many people are willing to cooperate with those raising children while working, and therefore asking people around in workplaces, etc. for support iseffective.
0
20
40
60
80
Red
uced
overtime
work
Leaves
that
canm
oreeasily
be
taken
Imp
rovedcom
mu
nication
with
one’s
spou
se
More
flexible
person
nel
assignm
ent
inw
orkp
laces
Imp
rovedsk
illsin
hou
sework
/ch
ildcare
Matters considered necessary to engage in housework/child care (males/regular employees) (by work hour)
Less than 10 hoursAt least 10 hours, but less than 12 hours12 hours or morePersons dissatisfied with 12 hours or more
(%)
Source: Prepared based on “Individual/Company Survey on Work-Life Balance” (2014), Cabinet Office (middle figure); “Survey on Time Use and Leisure Activities”(2011), Statistics Bureau (MIC) (left figure); and “7th Survey on Working Life” (2015), The Japan Institute for Labour Policy and Training (right figure)
12
207
9
283
0 100 200 300
Hu
sban
ds
Wives
Hu
sban
ds
Wives
Number of hours husbands and wives spentin housework by household attribute
(Minute)
Do
ub
le-Inco
me
ho
useh
old
sF
ull-tim
eh
ou
sewife
ho
useh
old
s
20
82.2
65.7
0
20
40
60
80
100
Su
pp
ortin
gco
wo
rkersat
wo
rkplaces
Su
pp
ortin
gn
eighb
ors
and
peo
ple
inco
mm
un
ities
(%)
Awareness about supporting those raising childrenwhile working (Percentage of those who answered
that they are willing to support)
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Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Effects of new work styles utilizing information technologies ―
While new work styles associated with technological revolutions are drawing attention, promoting the introduction of new work stylesutilizing information technologies such as telework is expected to contribute to the improvement of labour productivity and realizationof a work-life balance.
Telework, which has been broadly spreading, is advantageous for both companies and workers in improving work productivity,reducing stress, and securing family communications, etc.
52.2
34.9 34.931.0 31.0 30.6
12.99.1
0
20
40
60
Mo
red
iversew
ork
styles
Impro
vedlabo
rparticipatio
nrate
of
theexisting
emplo
yees
Readjustm
ento
fo
rganization
andperso
nnelassignm
ent(co
nsolidatio
no
fthe
wo
rkw
ithhigher
addedvalues,
etc.)
Impro
vedsatisfactio
nand
mo
tivation
of
emplo
yees
Acquisitio
nand
sharingo
fkno
wledge/kno
w-ho
w
Recruitm
ento
fnew
emplo
yees
Increasedw
ork
hours
Impro
vedrelatio
nshipsw
ithexternal
interestedparties
(insideand
outside
theindustry,
dom
esticand
overseas,
etc.)
Effects of promoting labour participation utilizinginformation technologies
(%)54.4
17.4 16.5 15.210.0
0
20
40
60
Imp
rovedp
rodu
ctivity/efficiency
ofw
ork
Less
comm
utin
gb
urd
en
Imp
rovedcu
stomer
services
Less
stressan
dm
orep
eaceof
min
d
More
family
comm
un
ications
Advantages of telework(%)
16.2
3.4
0
5
10
15
20
2011 12 13 14 15
Status of introducing telework
Introduced
Not introduced, but have concrete plans to do so
(%)
(Year)
27.0
31.4
0
26
28
30
32
Overall total With high labour productivity
Percentage of increased use of IT technologiesin the last 3 years(%)
Source: Prepared based on “Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT’s Multifaceted Contributions to Economic Growth” (2016)(lower left figure) and “FY2015 Communications Usage Trend Survey” (upper right figure), MIC; and Survey on Working Hours Management and Efficient Work Styles” (2015)(upper left figure) and “Results of Study on the Actual Situation of Diverse Work Styles Using Information and Communication Devices” (2014) (lower right figure), The JapanInstitute for Labour Policy and Training 21
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Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Interest in flexible work styles utilizing technological innovations and their effects [1] ―
There is a high interest in working styles enabling people to work whenever and wherever they choose, and the number of people
choosing working styles without being employed utilizing information technologies is increasing.
By income level, those with low income are relatively large in number, but there are a certain number of those with high income.
18.9
31.4
4.9
9.7
23.8
41.1
0
10
20
30
40
50
2007 12
(Year)
Number of business operators utilizing informationcommunications technologies with no employees
Females
Males
(10,000 persons)
0
2
4
6
8
10
12
Less
than
1m
illion
1to
1.99m
illion
2to
2.99m
illion
3to
3.99m
illion
4to
4.99m
illion
5to
5.99m
illion
6to
6.99m
illion
7to
7.99m
illion
8to
8.99m
illion
9to
9.99m
illion
At
least1
0m
illion
Income distribution of business operators utilizing informationcommunications technologies with no employees
2007 2012
(10,000 persons)
(Yen)
Source: Prepared based on “FY2007 Basic Survey on Employment Structure” and “FY2012 Basic Survey on Employment Structure”, Statistics Bureau (MIC) 22
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233
285
360
443
501
548
600
0
100
200
300
400
500
600
700
2014 15 16(Expect.)
17(Predict.)
18(Predict.)
19(Predict.)
20(Predict.)
(100 million yen)
Transition and prediction of the scale of domesticsharing economy market
(FY)
Part II Chapter 2: Changes in Environment Surrounding Working Style and Realization of Work-Life Balance― Interest in flexible work styles utilizing technological innovations and their effects [2] ―
The domestic market for sharing economy is expected to expand.
With regard to the degree of satisfaction in working style without being employed, while many answered that they can freely choosedesirable work, many listed income issues and unclear future prospects as the reasons for dissatisfaction. Therefore, it is required tounderstand the actual situation and discuss how to respond to it for the future.
Source: Prepared based on “Sharing Economy” (2016), Yano Research Institute (left figure); and “Survey of Actual Conditions for Work Style Reform toRespond to New Industrial Structure” (FY2016 Industrial Economic Research Commissioned Project of METI), Mizuho Information & Research Institute(middle figure and right figure)
55.3
26.7 26.6 26.2 24.5
0
20
40
60
80
100
Can
freelych
oosed
esirable
work
Can
spen
dtim
ew
ithon
e’sfam
ily/
forch
ildcare
and
nu
rsing
No
ann
oying
hu
man
relations
Sh
ortw
orkin
gh
ours/com
mu
tingtim
e
Can
choose
the
place
tow
ork
Reasons for satisfaction withworking style without being employed
(worker survey)(%)
89.8
31.4
9.8 8.8 8.6
0
20
40
60
80
100
Incom
e(n
op
ayraise/u
nstab
lein
come,etc.)
Can
notim
prove
skills/u
nclear
futu
rep
rospects
Can
notfreely
choose
desirab
lew
ork
Work
fluctu
ation
Lon
gw
orkin
gh
ours/com
mu
tingtim
e
Reasons for dissatisfaction withworking style without being employed
(worker survey)(%)
23