- Advertisement -

Japan has more jobs than it knows what to do with.

Government data published Tuesday revealed that the country’s labour shortage has reached its most extreme level in more than 40 years.

Japan now has 1.48 jobs for every applicant. That’s the highest number since 1974, when rapid growth pushed the ratio to 1.53. It also exceeds the labour shortage peak Japan hit during its economic bubble years in the early 1990s.

- advertisement -

The current situation is generally good news for Japan’s economy.

“There are lots of people entering the labour market, which is one upside,” said Marcel Thieliant, senior Japan Economist at research firm Capital Economics.

The number of older people and women joining the workforce has increased because “the labour shortage is forcing companies to hire people who previously weren’t looking for work,” he said.

That suggests Prime Minister Shinzo Abe’s plan to get more women into work to lift the economy is bearing some fruit.

The new labour figures point to a slight fall in Japan’s unemployment rate in the coming months, Theliant said. They are also fueling hopes of a turnaround in sluggish consumer spending, which is expected to rise as more people enter the workforce.

But at the same time, the labour shortage highlights some of the difficulties Japan is facing.

While the Japanese economy is growing, the labour market figures are more indicative of a shrinking pool of workers than a rise in the number of jobs, Thieliant said.

A rise in life expectancy and lower birth rates have created an aging population and dwindling workforce in Japan, posing a threat to the country’s future economic growth. Japan is notoriously adverse to the idea of using immigration to offset the decline.

The tightening labour market hasn’t so far translated into significant increases in pay for most workers. And there are also signs some Japanese companies are shifting jobs abroad because they can’t find enough workers at home, Thieliant said.

Source: CNNMoney


Previous articleCN Rail reaches tentative agreement
Next articleUber Fires Former Google Engineer at Heart of Self-Driving Dispute
ADR Daily is a specialized news portal with a focus on providing authentic news, information and research analysis on Appropriate Dispute Resolution (ADR), Human Resource Management (HRM) and Industrial Relations Management (IRM) in Ghana and beyond. This platform serves as an information resource base for the progress of the ADR, HRM and IRM industries, and seeks to promote professionalism in ADR practice by supporting a network of ADR professionals within and across nations and continents. ADR Daily keenly encourages the mass adoption of ADR mechanisms, particularly negotiation, mediation and arbitration for the resolution of disputes in all spheres, through the publication of industry news and information, as well as by deploying innovative awareness creation engagements.