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Analysis of the Labour Economy

－Realization of a Society Where Everyone Can Play an Active Role andChallenges for Enhancement of Labour Productivity－

〔 Summary 〕

September 2016

Ministry of Health, Labour and Welfare

2016(White Paper on the Labour Economy 2016)


Analysis of the Labour Economy

－Realization of a Society Where Everyone Can Play an Active Role andChallenges for Enhancement of Labour Productivity－

〔 Outline 〕

Outline of the Analysis of the Labour Economy 2016With our recognition of requiring environmental improvement to boost labour productivity and making it possible forthose who are willing to work to play an active role, the white paper was titled “ Realization of a Society Where EveryoneCan Play an Active Role and Challenges for Enhancement of Labour Productivity ” and analyzed on challenges for theimprovement of labour productivity and measures for the way of working with which everyone can play an active role forovercoming supply limitations caused by the decline in birthrate and demographic aging.

2.5

3.0

3.5

4.0

4.5

5.0

5.5

0

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2007

08 09 10 11 12 13 14 15 16

Fig.１ Unemployment rate and the ratio of active job openings to active job

applications have steadily been improved.

Unemployment rate (right axis)

The ratio of active job openings to activejob applicants for regular employees

The ratio of activejob openings to activejob applicants

（Time(s)）（％）

（Year/Month）

2007

-10

-5

0

5

10

15

20

2005 06 07 08 09 10 11 12 13 14 15（Year）

(10,000 persons）

Fig. 2 Number transferred from irregular employment toregular employment has been increased in the latest 3

years . (15 to 54 years old)

15

16

17

18

19

20

21

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ

2013 14 15 16

（Year/Quarter）

（%）Fig. 3 The ratio of involuntary irregular employment

has been on a declining trend.

19.9

16.6

Decreased for 9 quarterlyperiods in a row.

※The “number of transferred persons from irregular employment to regularemployment” minus the “number of persons transferred from regular employmentto irregular employment.”

ⅰ

Chapter 1 Trends and Features of the Labour EconomyEmployment conditions are steadily improving: the FY2015 average unemployment rate was 3.3%, the lowest rate in 19years, and the FY2015 average ratio of active job openings to active job applicants was 1.23, the highest ratio in 24 yearsand it reached the record high of 0.82 times in March 2016 and so forth. Moreover, transfer from irregular employment toregular employment has been increasing for 3 years in a row since 2013; pertinent to involuntary irregular employment, ithas been decreasing for 9 quarterly periods in a row by year-to-year comparison.

◆ In view of the condition of added value in Japan, (1) The contribution of capital input including ITinvestments has been diminishing since the latter half of 1990s; (2) The contribution of TFP (Total FactorProductivity) has been decreasing as compared with the 1970s and 1980s, due largely to decreasedcontribution of TFP, and added values have not increased since the latter half of 1990s. [Fig. 4]

◆ For Japan, to overcome supply limitations caused by the decline in birthrate and demographic aging isan urgent issue, and toward this particular goal, in addition to an increase in capital input, anenhancement of added value generation by each person, i.e., an improvement in labour productivity, isindispensable.

◆ If we look at Japan’s TFP contributions, these are correlated with the increased rate of intangible assetinvestment in the international comparison, but because Japan’s increased rate of intangible assets isweak, the TFP increase rate is weak. [Fig. 5]

◆ In particular, of the intangible asset investments, among major countries,(1) Japan’s investment in information assets concerned with IT for software, etc., is weak [Fig.6];(2) Japan is weak in human investment including off-the-job training [Fig. 7].These are considered to be major factors of weakness in the increased rate of intangible assetinvestment, so in this respect, an increase in investments for information assets and human capital aretasks for Japan.

◆ Further, taking account the impact of an increase in labour productivity on labourers, an increase inlabour productivity links to an increase in wages to contribute to a major positive effect, moreover, interms of employment, it is not linked to a decrease in labour employed nor an increase in the number ofthe unemployed.[Fig.8/Fig.9]

Chapter 2: Japan’s Current Status and Challenges for Enhancement of Labour Productivity

ⅱ

-15

-10

-5

0

5

10

日本ドイツ英国米国

1995-2000

2001-2005

2006-2010

Japan Germany U.K. U.S.A.

図７我が国の人的資本（※）は減少傾向（国際比較）

Fig. 5 Countries, whose intangible assets are increasing, haveHigh TFP appreciation rate.(1995→2010)

y = 0.44x - 1.17

（2.98）R² = 0.43

-0.5

0

0.5

1.0

1.5

2.0

2.5

3.0

2.0 4.0 6.0 8.0

無形資産装備率の上昇率（％）

Germany

Increased rate of equipped ratio in intangible assets

France

y = -0.83x + 5.95

(-3.6)R² = 0.23

2

3

4

5

6

7

8

9

0 1 2 3 4

Un

emp

loym

ent

rate(%

)

Increased rate of labour productivity (%)

Osaka

Okinawa

Aichi

Tokyo

0

2

4

6

8

10

12

14

16


1995-2000

2001-2005

2006-2010

（％）Fig. 6 Increased rate of information assets (※) is weak.

(International comparison)

-1

0

1

2

3

4

5

6

TFPの寄与

労働投入増加の寄与

資本投入増加の寄与

（％）

（year）T

Contribution of TFP

Contribution of increase inlabour input

Contribution of increase incapital input

Growth rate of real GDP

y = 0.49x + 0.35(2.32)

R² = 0.17

-2.0

-1.0

0

1.0

2.0

3.0

-2.0 -1.0 0 1.0 2.0 3.0

Real labour productivity changed rate（％）

Real

emp

loyees

com

pen

sation

chan

gedrate

(%)

Japan

U.S.A.

U.K.

Fig. 8 Increase in labour productivity links to increase in wages(OECD countries/2008-14 average)

Fig. 9 Increase in labour productivity reduces unemployment rate.(By prefectures/2002-2012 average)

Fig. 4 Decreases in Japan’s GDP growth are attributed todecreases in capital input, labour input and to TFP.

Note: （※）Information assets indicate acceptance of order/ package software, self-developed software, etc., human capital indicates spending to OFF-JT.

TF

Pin

creasedrate

（％） U.SA.U.K.

Japan Germany U.K. U.S.A

Fig. 7 Japan’s human capital is on a diminishingtrend. (International comparison)

GermanyFrance

Japan

ⅲ

（％）

Chapter 3: Toward for a Society where everyone can play an active rolein the face of Population Decline

【Environmental improvement for the Elderly on How to Work and Play an Active Role】

◆ Although a decrease in population is expected in Japan in the future, in view of the elderly, an increase in

population is expected. In the elderly, while numbers of persons employed are slightly increasing, there are still

plenty of elderly people who have not yet been employed irrespective of their willingness to work. In this regard,

environmental improvements enabling them to select a variety of working ways is necessary.【Fig.10/Fig.11】

◆ As an alternative for work, “starting a business” is also considered in addition to employment. Those aged 60 or

older who wish to start a business are increasing. Taking account of the elderly’s experiences cultivated during

their long career, support for starting a business for them as a venue to play an active role is necessary.【Fig.12】

【Challenges of companies/Labourers aiming to Play an Active Role for Limited Human Resources】

◆ While the employment situation is improving, the decline birthrate and demographic aging are continuing to

develop, and labour shortages are emerging. Amid the labour shortages, finite human resources exert abilities

obtained by their experiences, and it is significant to establish a society, in which everyone can actively participate.

◆ Companies are faced with situations offers of work result in no applicants, or no applicants are found suitable

for the work. Reexamining the consolidation of support for the enhancement of applicant qualifications, wage

levels, treatment/labour conditions, proposing better job recruitments and endeavoring to secure human resources

are crucial. 【Fig. 13】

ⅳ

9601,104

1,267

284

250

313

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

02 07 12

（10,000 persons）

（年）

Fig.11 In addition to occupied population of 60 years or older, considerablenumber of wishing to work exist, it tends to be increasing.

有業者数就業希望者

就業希望者（＋29）

Number of occupied

population

Wishing to work

Wishing to work

2002

43.2

34.8

5.9

16.1

0

20

40

募集しても、応募がない

応募はあるが、応募者の資

質が自社の求める水準に

満たない

応募はあるが、求職者が

求める処遇・労働条件と

自社の提示内容が

折り合わない

応募があり採用もしている

が、早期に離職してしまう

（％）

Insp

iteo

fo

ffering

job

recruitm

ent.,

no

app

lication

emerges

Fig. 13 There are many companies which do not reach the acceptance even thoughreceiving applicants for recruitment. （2016）

Mismatch in thephase of application

0

2

4

6

8

10

12

14

16

18

20

2002 07 12 （Year）

Fig. 12 Of those who are 60 years or older, personsto wish to found a company have increased.


10.7

14.5

17.3

Fig. 10 While the population of less than 60 years of agesdecreases, 60 years or older population increases (※)

(※) Numerical values in 2020 are from “Japan’s future estimated population”prepared by the National Institute of Population and Social SecurityResearch. (Estimated in January 2012.)

4104

4346

8648

8064

0

8,000

8,200

8,400

8,600

8,800

0

3,800

4,000

4,200

4,400

4,600

2012 15 20 （Year）

Less than 60 years of ages（right axis）（－583）

6o years or older（＋243）

（10,000 persons）（ 10,000 persons ）

ⅴ

Desp

iteth

ereis

anap

plicatio

n,

the

qu

alification

of

the

app

licant

cann

ot

be

satisfiedth

elevel

the

com

pan

yreq

uires

Desp

iteth

ereare

app

lication

s,treatm

ent/w

ork

con

ditio

ns

requ

iredb

yap

plican

tsan

dco

mp

any’s

presen

tedco

nten

td

oes

no

tb

eco

nfo

rmed

Desp

iteth

ereare

app

lication

san

dcarry

ou

trecru

its,th

eyleave

ajo

bso

on

(Year)


Analysis of Labour Economy

－Realization of a Society Where Everyone Can Play an Active Role andChallenge for Enhancement of Labour Productivity－

〔 Overview 〕

Employment conditions are steadily improving: the FY2015 average unemployment rate was 3.3%, the lowest rate in 19years, and the FY2015 average ratio of active job openings to active job applicants was 1.23, the highest ratio in 24 yearsand it reached the record high of 0.82 times in March 2016 and so forth.

Transfer from irregular employment to regular employment has been increasing for 3 years in a row since 2013, pertinentto involuntary irregular employment, it has been decreasing for 9 quarterly periods in a row by year-to-year comparison.

Chapter 1:Trends and Features of the Labour Economy－Trends of Employment, Unemployment, etc.－

2.5

3.0

3.5

4.0

4.5

5.0

5.5

0

0.50

1.00

1.50

2.00

2.50

2007

08 09 10 11 12 13 14 15 16

Transition of the unemployment rate and the ratio of active jobopenings to active job application

Unemployment rate (right axis)

Raito of new job openingsto job applicants

Active job openings to applicantsratio for regular employees

Ratio of active jobopenings to activejob applicants

（Time(s)）（％）

（year/month）

2007

Source: Prepared based on “Report on Employment Services,” MHLW, “Labour ForceSurvey” and “Labour Force Survey (detailed tabulation)”. Statistics Bureau, Ministry ofInternal Affairs and communications(MIC)

-10

-5

0

5

10

15

20

2005 06 07 08 09 10 11 12 13 14 15（Year）

（10,000 persons）Transfer from irregular employment to regular employment(15~54 years old)（Taking account of movement from regular employment to irregular employment.(※)）

※The “number of persons transferred from irregular employment to regular employment,”minus the “number of persons transferred from regular employment to irregularemployment.”

15

16

17

18

19

20

21

Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ

2013 14 15 16（year/quarter）

（%） Transition of ratio of involuntary irregular employment

Decrease for 9 quarterly periods in a row.

1

Chapter 1: Trends and Features of Labour Economy－Trends of wages－

Nominal wages in FY 2015 increased for 2 years in a row mainly due to the increase in full-time workers' scheduledwages.

Further, full-time workers’ nominal wages increased for 3 years in a row and the hourly wage of part-time workers is thehighest level, ever, at 1, 069 yen on average in 2015.

-4.0

-3.0

-2.0

-1.0

0

1.0

2.0

2007 08 09 10 11 12 13 14 15

Transition of the total sum of cash earnings

パートタイム労働者比率の寄与パートタイム労働者の現金給与総額の寄与一般労働者の特別給与の寄与一般労働者の所定外給与の寄与一般労働者の所定内給与の寄与

（％）

Percentage change from the previousyear of the total sum of cash earnings

of all workers

（FY）

Contribution of the ratio of part- time workersContribution 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.

41.3

41.0

39.8

40.2 40.240.1

40.3

40.740.9

39.0

39.5

40.0

40.5

41.0

41.5

42.0

2007 08 09 10 11 12 13 14 15

1,000

1,010

1,020

1,030

1,040

1,050

1,060

1,070

1,080

2012 13 14 15 16

Transition of the hourly wage of part-time workers（¥）

（year/month）

Transition of the total sum of cashearnings of full-time workers（¥10000）

（FY）

Source: Prepared based on “Monthly Labour Survey,” MHLW.※FY averages : 2012: ¥1,031; 2013: ¥1,041; 2014: ¥1,055; 2015: ¥1,070

2012 average 2013 average 2014 average 2015 average

¥1,027 ¥1,038 ¥1,054 ¥1,069

FY2012 FY2013 FY2014 FY2015

▲1.0% ▲0.2% 0.5% 0.2%

2

Chapter 2: Japan’s Current Status and Challenges for Enhancement of Labour Productivity

– Current Status of Labour Productivity in Japan (1) –

In view of the condition of added value in Japan, (1) The contribution of capital input including IT investments hasbeen diminishing since the latter half of the 1990s; (2) The contribution of TFP (Total Factor Productivity) has beendecreasing as compared with the 1970s and 1980s, due largely to decreased contribution of TFP, and added valueshave not increased since the latter half of 1990s.

For Japan, to overcome supply limitation caused by the decline in birthrate and demographic aging is an urgent issue,and toward this particular goal, in addition to an increase in capital input, an enhancement of added value generationby each person, i.e., an improvement in labour productivity is indispensable. Incidentally, the increased rate of labourproductivity in Japan has been at the average level in the OECD countries.

98

100

102

104

106

108

110

2005 06 07 08 09 10 11 12 13

France

Japan

U.K.

（2005年＝100）

U.S.A.

Germany

Transition of real labour productivity(International comparison)

3

-1.0

0

1.0

2.0

3.0

4.0

5.0

6.0TFPの寄与

労働投入増加の寄与

資本投入増加の寄与

（％）

（Year）

実質GDP成長率

Contribution of TFP

Contribution of increase inlabour input

Contribution of increase incapital input

Growth rate of real GDP

Source: Prepared based on （Ind.）Research Institutes of Economy, Trade and Industry “JIP Database 2015”(Left Fig.) and OECD Stat（Right Fig.）.

Analysis of factor of added value in Japan(2005=100)

（Year）

90

100

110

120

130

2000 01 02 03 04 05 06 07 08 09

France Japan U.K.

U.S.A.

（2000＝100）

（Year）

Germany -30%

-20%

-10%

0%

10%

20%

30%

40%

日本

米国

英国

ドイツ

フランス

付加価値

デフレーター労働投入

実質労働生産性の変化率

Labour input

4

-10%

0%

10%

20%

30%

40%

日本

米国

英国

ドイツ

フランス

Deflator

Labour input

Changed rate of real labour productivity

Japan

Added value

Chapter 2 Japan’s Current Status and Challenges for Enhancement of Labour Productivity－Current Status of Labour Productivity in Japan (2)－

When looking at the trends of labour productivity by industry, the increased rate of real labour productivity in the manufacturing industry inJapan is comparable to major countries. Meanwhile, although the increased rate of labour productivity in the eating and drinking servicesindustry is the highest in major countries, its level is the lowest.

When conducting analysis of factors, the added value factor is weak in both the manufacturing and the eating and drinking servicesindustries. Factors of increase in labour productivity are due to decreases in the deflating factor in the manufacturing industry and todecreases in labour input in the eating and drinking service industry.

In order for Japan’s labour productivity to be increased even further, an increase in added value is required.

Source: Prepared based on EU KLEMS Database.

Analysis of factor of real labour productivity in manufacturing industryTransition of real labour productivity in manufacturing industry

90

100

110

120

130

140

150

160

170

2000 01 02 03 04 05 06 07 08 09

France Germany

（2000＝100）

（Year）

U.S.A.

Japan

U.K.

Transition of real labour productivity in eating and drinking service industry

（％）

（％）

13

Japan

Deflator

U.S

.A.

U.K

.

Germ

any

Fran

ceF

rance

Germ

any

U.K

.

U.S

.A.

Analysis of factor of real labour productivity in eating and drinking services industry

Added valueChanged rate of reallabour productivity

Chapter 2: Japan’s Current State and Challenges for Enhancement of Labour Productivity-－Current State of Labour Productivity in Japan (3) －

If we look at Japan’s TFP contributions, these are correlated with an increased rate of intangible asset investment in theinternational comparison, but because Japan’s increased rate of intangible assets is weak, the TFP increase rate is weak.

In particular, of the intangible assets investments, among major countries, (1) Japan’s investments in information assetsconcerned with IT for software, etc., is weak, (2) Japan is weak in human investments including off-the-job training.These are considered to be major factors of weakness in the increased rate of intangible asset investment.

Relations between intangible assets and TFP

Source: Prepared based on (Ind.)Research Institute of Economy, Trade and Industry “JIP Database 2013”, INTAN-Invest, Corrado. Haskel, Jona-Lasinio, Iommi (2012)“Intangible Capital and Growth in Advanced Economies”, Miyagawa/Hisa (2013) “Intangible asset investment by industry and Japan’s economic growth” , EU KLEMS database.Note : (1)TFP (Total Factor Productivity) is comprehended as a part (residual error) incapable of measuring by an increase in input by production factors such as capital/labourand understood that it reflects innovation and management efficiency. (2)Intangible assets are classified into (a) “Information Assets” like software, etc., (b) “InnovativeProperty” of R&D, etc., (c) “Economic Competences” like investments in brand equity/organizational structure and human capital.

y = 0.44x - 1.17

（2.98）R² = 0.43

-0.5

0

0.5

1.0

1.5

2.0

2.5

3.0

1.00 2.00 3.00 4.00 5.00 6.00 7.00

T

F

P

上昇率（％）

0

5

10

15

20


1995-2000

2001-2005

2006-2010

（％） International comparison of the increased rate of information assets

-15

-10

-5

0

5

10


1995-2000

2001-2005

2006-2010

（％）人的資本の上昇率の国際比較

5

Japan

Japan Germany U.K. U.S.A.

Germany U.K. U.S.A.

International comparison of the increased rate of human capital

Germany Japan U.K.

France.

U.S.A.

Increased rate of equipped ratio in intangible assets

TF

Pin

creasedrate

(%)

Chapter 2: Japan’s Current Status and Challenges for Enhancement of Labour Productivity－Fruits of an Increase in Labour Productivity from the Perspective of Wages/Employment (1)－

When looking at the relationship between labour productivity and wages with international points of view, as real labourproductivity increases, the relationship in which real employees’ compensation increases can be seen.

When looking at the relationship between labour productivity and the unemployment rate by prefectures in Japan, aninverse correlation is recognized between an increase in labour productivity and unemployment rates, and therelationship of if labour productivity increases, the number of the unemployed increases cannot be seen.

Relations between labour productivity and wages in OECD countries(2008-2014 average)

Source: Prepared based on OECD.Stat(Left Fig.）,“Basic Statistical Survey on Employment Structure”, Statistics Bureau(MIC), “Prefectural Accounts,” Cabinet Office(Right Fig.), "Monthly Labour Survey (regional)," MHLW(Right Fig.)

y = 0.50x + 0.35

(2.32)

R² = 0.17

-2.0

-1.0

0

1.0

2.0

3.0

-2.0 -1.0 0 1.0 2.0 3.0Real labour productivity changed rate (%)

Real

emp

loyees’

com

pen

sation

chan

gedrate

(%)

y = -0.83x + 5.95

(-3.6)

R² = 0.23

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

失業率（％）

Relations between labour productivity and unemployment byprefectures in Japan

(Fiscal 2002 – 2015 average)

Unem

plo

yment

rate

Okinawa

Osaka

Aichi

Tokyo

GermanyFrance

Japan

U.S.A.

U.S.A.

Increased rate of labour productivity (%)

6

50

60

70

80

90

40 50 60 70 80 90

Co

mp

anies’

imp

lemen

tation

ratioo

fO

FF

-JT(R

egular

emp

loyees)

（％）

Companies’ implementation ratio of OJT (Regular employees) (%)

卸売業

Retail trade

Eating and drinking services

Living-related and personal services,amusement services

情報通信業

Wholesaletrade

Manufacturing

Scientific reserch, proffessionaland technical services

Information andcommunications

70

80

90

100

110

120

50 60 70 80 90

Retail trade

飲食サービス業

Information andcommunications

Degree

ofcom

pan

ies’p

ositiveen

gagemen

tin

develop

men

tof

labou

rers’ab

ility(regu

larem

ployees)

Manufacturing

Eating and drinkingservices

Living-related andpersonal services,amusementservices

Scientific reserch, proffessionaland technical services

Chapter 2: Japan’s Current State and Challenges for Enhancement of Labour Productivity― Japan’s Challenges and Policies Aiming for an Increase in Labour Productivity(1) ―

Although an increase in ability development expenditure is effective for an increase in labour productivity, whencompanies are tackling ability development, to carry out both implementation of on-the-job training and off-the jobtraining are significant in terms of an increase in labour productivity.

Other than these initiatives, to independently promote labourer ability development in compliance with companies’policy such as the enhancement of added value and toward self-development for labouerers.

Source: Prepared based on “Ability Development Basic Investigation,” MHLWNote: The scale of bubbles illustrates the comparative scale of labour productivities with other industries.

Relations between implementation ratio of OJT/OFF-JT and labour productivity Relations between carrier formation and labour productivity

Industrial groups indicatingpositive growth rate can be seen inplenty.

Wholesale trade

Companies’ implementation ratio for OFF-JT (Regular employees) (%)

7

With reference to Pseudo-Kites Index, viewing it from an international perspective, an increase in the relative minimumwage will link to contraction of labour productivity disparity, as a result, it may be a possibility to be connected to anincrease in nationwide labour productivity.

In Japan, even as an increase in the minimum wage cannot be said effective in an increase in the average wages, it hasan impact on pay hikes for people whose wages correspond to the lower level of 10%.

Chapter 2: Japan’s Current Status and Challenges for the Enhancement of Labour Productivity－Japan’s Challenges and Policies for an Increase in Labour Productivity (2)－

Pseudo-Kites Index and labour productivity disparity（International comparison）

Japan’s minimum wage and its level raise

-0.1

0

0.1

0.2

0.3

0.4

0.5

下位10％賃金平均賃金

（％）

Preliminary calculation on impact of minimum wage(Changed rate by an increase in minimum wage by 1%)

Wage of lower level 10% Average wageChanged rate of minimum wage

8

-0.1

0

0.1

0.2

0.3

0.4

0.5

疑似カイツ

↑Labour productivity disparity has contracted.（Comparisonbetween service industry and manufacturing industry.)

Pseudo Kites

Source: Prepared based on OECD. Stat (left fig.,) “All member Consultative meeting on the concept of indication system” Central Minimum Wage Council ,MHLW(Right fig.)Note: Pseudo Kites Index is the value obtained by dividing the first quantile income in the labourers’10 income quantile class by the median value of the income.

-0.5

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1981-85 86-90 91-95 96-2000 01-05 06-10

デニソン効果

ボーモル効果

純生産性要因

（％）

（Year）

Labourproductivity

increased rate

0

0.025

0.030

0.035

0.040

0.045

0.050

リリエン指標

Under average Average – 20% 20% or greater

Hours spent for learning and practices

Chapter 2 Japan’s Current Status and Challenges for the Enhancement of Labour Productivity―Japan’s Challenges and Policies for an Increase in Labour Productivity (3)－

When viewed from an international perspective, countries whose labour transfers among industries more actively (countries with higher Lilien Measure) tend tobecome higher in the increased rate of labour productivity.

When implementing analysis of factors for the changed rate of Japan’s labour productivity, what contributes the most to the increase among factors for boostingit are genuine productivity factors followed by the Denison Effect (effects by labour transfer among industries) and it is recognized that the labour transfer to theindustries with higher labour productivity is one of factors for boosting labour productivity.

Moreover, when viewed from an international perspective, the longer the hours spent for learning and training, the more active trend can be seen in labourtransfer among industries; for inter-industrial labour transfers, it will be necessary for each person to enhance own abilities through spontaneous learning andtraining.

Decomposition of contribution degree of labour productivityincreased rate of Japan

Relations between learning/practice hours and inter-industry labour transfers (EU countries)

9

France

GermanyJapan

U.K.

U.S.A

y = 41.628x - 0.0152

(4.13)

R² = 0.4264

-1.0

0

1.0

2.0

3.0

4.0

5.0

0 0.02 0.04 0.06 0.08 0.10 0.12

（Lilien Measure）

Inter-industry labour transfers and increased rate of labour productivity(International comparison)

Denison Effect

Baumol’s effect

Pure productivity

effect

Lab

our

prod

uctivity

increase

rate

Lilien

Measure

Source : Prepared based on OECD. Stat, (Ind.)The Research Institute of Economy, Trade and Industry, “JIP Database 2015” (Left fig. and center fig.), EU KLEMSDatabase (Center fig.), EURO Stat(Right fig.).Note: (1)Lilien measure aggregates isolations between employment fluctuation of each industry and employment fluctuation of whole industry and it means that the

bigger its value, inter-industrial labour transfer is more active.(2)Baumol’s effect means an effect by a change according to industrial structure; Denison effect means an effect according to labour transfer.

Chapter 3: Toward a Society Where Everyone can Play an Active Role in the face of Population decline－Japan’s Situation Where Active Roles of Workers are sought－

Although a decrease in the labour force population is expected, when looking into potential labour force*, there are 4.13million population who wish to work and 2.22 million unemployed.

In terms of a certain number of existence of those who have not yet been employed due to incongruous content of work,duty hours, wage, etc., from their requests, provision of working alternatives by configuration of a variety of workinghours, and attempting the enhancement of matching functions by transparency of jobsite information, are essential.

Source : Prepared based on “Labour force survey (detailed tabulation)(2015)”, Statistic Bureau (MIC)

* Those who are considered as wage-earners regardless of not reaching to be employed. Within non-labour force population, “Wishing to work” and the“Unemployed” are considered.

112 134

301

88

0

100

200

300

400

就業希望者完全失業者

Potential labour force (by gender)（10,000 persons）

Males Females

Wishing to work

121

23 18

51

524

95

21

6685

0

20

40

60

80

100

120

140

適当な仕事が

ありそうにない

近くに仕事が


自分の知識・能力

にあう仕事が


勤務時間・賃金などが

希望にあう仕事が


今の景気や季節では

仕事がありそうに

ない

適当な仕事が

ありそうにないのうち

その他

出産・育児のため

介護・看護のため

健康上の理由のため

その他

Non-job seeking reasons of non-labour force populationswho wish to work


Breakdown of “There seems no appropriate jobs”(1,210,000 persons)

Oth

ers

There

seems

nojobs

inview

ofcurrent

economy

17 26 3218

60

16

49

0

10

20

30

40

50

60

70

80

賃金･

給料が

希望とあわない

勤務時間・休日

などが希望と

あわない

求人の年齢と

自分の年齢とが

あわない

自分の技術や

技能が求人要件に

満たない

希望する種類・

内容の仕事が

ない

条件にこだわら

ないが仕事が

ない

その他

Number of the unemployed by reason why unemployed

Job recruitment is incongruous with job application(1,530,000persons)

（10,000 persons）D

uty

hou

rs,holid

ays,etc.,d

on

otsatisfy

requ

est

Th

eage

ofrecru

itmen

tan

dow

nage

do

not

fit

Th

ereis

no

jobs

tosu

itow

nreq

uirem

ent

Th

ereis

no

jobs,even

regardles

ofcon

dition

s

Oth

ers

Ow

ntech

niq

uean

dsk

illd

on

otsatisfy

recruitm

ent

requ

iremen

ts

10

Unemployed

There

seems

nojobs

.inco

nform

ityw

ithone’s

knowledge,

ability

There

seems

nojobs

whose

dutyhours,

wage,

etc.,conform

torequest

There

seems

nojobs

inthe

vicinity

There

seems

noappropriate

jobs

There

seems

noappro

priatejobs,

others

Du

eto

health

con

ditio

n

Du

eto

child

birth

and

care

Du

eto

caring

and

nu

rsing

care

Wage/salary

do

not

satisfyreq

uest

11

9601,104

1,267

284

250

313

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

02 07 12（Year）

60歳以上の有業者と就業希望者

有業者数就業希望者

就業希望者（＋29）

(10,000 persons)

2002

Chapter 3: Toward a Society Where Everyone can Play an Active Role in the face of Population decline― Environmental Improvement for the Elderly on How to Work and Play Active Roles (1)－

Although a decrease in the labour force population is expected in the future, as far as the elderly are concerned, the population is expected

to increase. The number of working elderly is increasing, and there are still 3.13 million elderly people who have yet to start to work but

want to work.

Further, the stratum of unemployed households of 60 – 64 age and 65 or older age ranges have the same level of consumption expenditure

as the stratums of working households of 35 – 44 age and 34 or younger, and working households of 65 or older stratums have

consumption expenditure over that of the aged 60 or older stratum of unemployed households. The participation of the elderly in

employment not only leads to alleviation of labour force supply limitations, but also contributes to creating the virtues of economic

circulation through income acquisition.

資料

4,104

4,346

8,648

8,064

0

8000

8200

8400

8600

8800

0

3800

4000

4200

4400

4600

2012 15 20 （Year）

60歳以上（＋243）

（10,000 persons）（10,000 persons）

35

40

43

37

33

14

18

23

28

3432

2927

24

0

5

10

15

20

25

30

35

40

45

～34 35～44 45～54 55～64 65～ 60～64 65～

勤労者世帯無職世帯

可処分所得

消費支出

（10,000 Yen）

（歳）

高年齢者世帯の可処分所得と消費支出

（Age）Unemployed households

(Age)

Disposable income（per month）

Transition of the population of less than60 years of ages/60 years or older

Occupied persons of 60 or older and wishing to work Disposable income and consumption expenditure of elderly households

Number ofthe occupied

Less than 60 years ofages(right axis)(－584)

60 years orolder(+243)

Wishing to work

Wishing to work

Wage workers’ households

Consumptionexpenditure(per month)

Source : Prepared based on “Population Estimates” (Left fig.), “Basic Statistical Survey on Employment Structure(2012)” (Left fig/Center fig.) , “Family Income and Expenditure Survey (2015)”(right fig.),Statistic Bureau,(MIC), “Population Projections for Japan ”, (Ind.) National Institute of Population and Social Security Research.

Chapter 3: Toward a Society Where Everyone can Play an Active Role in the face of Population declineEnvironmental Improvement for the Elderly on How to Work and Play an Active Role (2)－

With respect to the elderly, because that both males and females wishing to continue their present work exceed 80%,the implementation of policies for continued employment has become significant.

Meanwhile, there are plenty of elderly employed in irregular employment on the grounds of their preference to work attimes convenient to them, or because of their wish to gain supplementary revenues for their family budgets (e.g. schoolexpenses, etc). Hence the configuration of flexible labour hours is necessary from the standpoint of being employedwith a rewarding and challenging mood.

Source: Prepared based on “Basic Statiscal Survey on Employment Structure(2012)” (Left Fig.), “Labour Force Survey (detailed tabulation)(2015)” (Right fig.), Statistic Bureau(MIC). 12

81.4％

（6.21 million）

80.8%(4.07 million)

2.9％

（220,000persons）

1.8％


3.9％

（290,000persons）2.7％


10.8％


13.4％


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

男性女性

仕事をすっかり

やめてしまいたい

ほかの仕事に

変わりたい

この仕事のほかに

別の仕事もしたい

この仕事を続けたい

（7.63 million persons）（5.05million persons）（％）

Want to quit job all in all

Want to shift to anotherjob.

Want to do other jobbeside this job.

Male Female

Want to continue this job.

No jobs forregularstaff/regularemployees(11.7%)

Preference touse one’sprofessionalskills, etc.(13.4%)

Others(18.0%) Preference

to work inone’sconvenienthours(21.8%)

Shortcommutetime (4.4%)

Preference tosupplementary forfamily budget,school expenses,etc.(20.1%)

Main reasons for non-regular employment labourers60 years or older get present employment status

Conscious mind of working for employed personover 60 years or older (by gender)

Readily compatiblewith familyaffairs/childcare/nursing, etc.(4.2%)

Chapter 3: Toward a Society Where Everyone can Play an Active Role in the face of Population decline― Environmental Improvement for the Elderly on How to Work and Play an Active Role (3)－

Source: Prepared based on “Basic Statiscal Survey on Employment Structure(2012)” (Left Fig.), Statistic Bureau(MIC), “Inauguration of Senior entrepreneur (2012)” (Right fig.) ,Japan FinanceCorporation General Research Center

13

0

2

4

6

8

10

12

14

16

18

20

2002 07 12

（year）

Of persons 60 years or older, thoseprefer to found enterprise


10.7

14.5

17.351.1

36.2 36.235.1

24.522.3

20.218.1

10.68.5

13.8

0

10

20

30

40

50

60

仕事の経験・知識

や資格を生かした

かった

社会の役に立つ

仕事がしたかった

年齢や性別に

関係なく仕事が

したかった

自由に仕事が

したかった

収入を増やし

たかった

自分の技術や

アイデアを事業化

したかった

事業経営という

仕事に興味が

あった

適当な勤め先が

なかった

時間や気持ちに

ゆとりが欲し

かった

趣味や特技を

生かしたかった

その他

Incentives of founding enterprise (Multiple responses up to 3)

（％）

To

utilize

jobexp

eriences/

kn

owled

gean

dq

ualifications

To

practice

ajob

tocon

tribu

teto

society

To

do

one’s

jobfreely

To

increase

incom

e

Interested

ina

jobfor

bu

siness

man

agemen

t

To

mak

eon

e’stech

nology

and

idea

systemize

asa

bu

siness

The elderly who want to found an enterprise have been increasing. When taking a look at incentives for starting a business, responses obtained are “Want to utilize one’s experiences,

knowledge and qualifications,” “Want to practice a job to contribute to society,” “Want to work irrespective of age andgender” and suchlike. The founding of businesses by the elderly also is based on elderly needs to take advantage of thetheir experiences and knowledge obtained through their occupational experiences and therefore the implementation ofa business foundation assistance policy is considered necessary.

To

work

irrespective

ofage

and

gend

er

No

app

ropriate

comp

any

tow

ork

To

have

some

affluen

cein

time

and

feeling

To

utilize

hob

by

and

specialsk

ills

Oth

ers

Chapter 3 Toward a Society Where Everyone can Play an Active Role in the face of Population decline－Environmental Improvement for the Elderly on How to Work and Play an Active Role (4)－

When looking into relations between social activities and employment from the standpoint of what sort of things are necessary in

order to play an active role even when one becomes elderly, those who replied that they carry out social activities during their

career (50 – 59 years old) have a higher ratio of employment experience in their age bracket between 58 and 67.

Moreover, looking into relations between ability development/self-development and incomes, those who have experienced ability

development/self-development during the age bracket between 54 and 63 have high their monthly incomes on average.

It is significant to carry out social participation actively and execute ability development/self-development by securing time

through a reduction in long working hours, from career ages.

23.7 24.1

17.5

11.08.2 8.9

6.5

38.2

27.2

13.5

6.74.6 5.1 4.7

0

5

10

15

20

25

30

35

40

45

10

万円以下

11

～20

万円以下

21

～30

万円以下

31

～40

万円以下

41

～50

万円以下

51

～100

万円以下

101

万円以上

54～63歳時に能力開発・自己啓発の経験の有無別58～67歳時点の収入分布（％）

能力開発・自己啓発あり１か月の平均収入額４７．８万円能力開発・自己啓発

なし１か月の平均収入額３４．６万円

110 thousandyen to200 thousandyen or less




510 thousandyen to1,000 thousandyen or less

1,010 thousandyenor more

14

63.960.0 69.9

60.1

36.140.0 30.1

39.9

0

10

20

30

40

50

60

70

80

90

100

Employment ratio according to be employed ornot at the moment between 58 to 67 by persons

with and without social activities in careerdays(“Social participation activities”,“Non-

paying job”)

仕事をしている仕事をしていない

（％）

Doing Not doing

Social participation activities

Doing Not doing

Non-paying job

Not doing job

With ability development/self-development

Average income/month¥478,000

Without ability development/self -developmentAverage income/month ¥346,000

100thousandyen or less

Income distribution in an age bracket of 58 – 67 by persons with and without experiencesof ability development/self-development during ages 54 to 63.

Doing job Not doing job

Source: Prepared based on “Longitudinal Survey of Middle-aged and Elderly Persons (9th research, 2013)”, MHLW.Note: Doing or not doing social activities is age bracket 50 – 59 (1st research) is point in time, working on or not working on of ability development/self-development is age 54-63 (5th

research) at this point in time, doing or not doing job, income per month is at this point in time of age 58-67 (9th research).

49.4%45.0%

5.6%

Business’ Judgment on Personnel

Appropriate

Excess

43.234.8

5.916.1

0

20

40

募集しても、

応募がない

応募はある

が、応募者の

資質が自社の

求める水準に

満たない

応募はある

が、求職者が

求める処遇・

労働条件と

自社の提示内

容が折り合わ

ない

応募があり採

用もしている

が、早期に離

職してしまう

（％）Reasons why recruitment cannot be fulfilled *Business Survey

Mismatch at application phase

Regard

lesso

frecru

itmen

t,no

app

lication

emerged

Alth

ou

ghth

ereare

entries

for

job

offers,

treatmen

t/labo

ur

con

ditio

ns

requ

iredb

yjo

bseekers

and

com

pan

y’sp

osted

con

tent

arein

com

patib

le

Alth

ou

ghth

ereare

app

lication

san

daccep

tance,

the

emp

loyed

areliab

leto

qu

itso

on

In Japan, the labour shortage has emerged in addition to the decline birthrate and demographic aging. Taking account businesses’ judgements on

personnel, about half of them replied that they have a shortage of labour. Labour shortages have an effect on business management as an inability to

correspond to increases in demand, and workplace impacts of an increase in overtime working hours and in a decrease in acquisition of holidays.

Furthermore, an impact in terms of an increase in employee resignations can be seen.

Even as businesses issue employment offers in order to secure human resources, as many as 40% of businesses have received no applicants despite

offering employment, and 40 percent face mismatches in terms of the applicants. As the lack of applicants and the mismatches were caused by

mismatches in the wage level and treatment/working conditions, businesses must carry out positive employment management and try to secure human

resources.

48.4

40.7 38.3 37.5

23.8

0

10

20

30

40

50

需要の増加

に対応できない

技術・ノウハウの着実

な伝承が困難になって

いる

事業運営上に支障を

来している

募集賃金の上昇や既存

人材の処遇改善、時間

外労働の増大等で人件

費が増大している

新規事業への着手や事

業拡大計画が停滞して

いる

Impact of labour Shortage on Business Management*Business Survey

（％）

Su

ccessionof

techn

ique/kn

owh

owh

asb

ecome

difficu

lt

Bu

siness

man

agemen

th

asb

eend

isturb

ed

Chapter 3 Toward a Society Where Everyone can Play an Active Role in the face of Population decline－ Challenges of Companies/Labourers aiming to Play an Active Role for Limited Human Resources(1)－

72.3

29.3 28.2 27.6 27.2

01020304050607080

時間外労働の増加や

休暇取得数の減少

従業員間の人間関係

や

職場の雰囲気の悪化

従業員の労働意欲の

低下

教育訓練や能力開発

機会の減少

離職の増加

Impact of Labour Shortage on Workplace*Business Survey

（％）

Source: Prepared based on “Survey on Current Status of a shortage of Human Resources (2016)” ,(Int.)The Japan Institute for Labour Policy and Training15

Shortage

Un

able

toad

aptto

anin

creasein

dem

and

An

increase

inrecru

itmen

twage

and

treatmen

tim

provem

ent

forexistin

gh

um

anresou

rces,increase

inovertim

ew

ork,

etc.have

increased

person

nel

cost

On

setto

an

ewb

usin

essan

dp

rojectfor

operation

alexpan

sionh

avestagn

ated

Deterio

ration

of

hu

man

relation

san

datm

osp

here

of

wo

rkplace

An

increase

ino

vertime

wo

rkan

dd

ecreasein

nu

mb

ero

fh

olid

ayacq

uisitio

n

Degrad

ation

inem

plo

yees’labo

ur

mo

tivation

Decrease

inEd

ucatio

n/train

ing

and

op

po

rtun

itiesfo

rab

ilityd

evelop

men

t

An

increase

insep

aration

from

wo

rk

Alth

ou

ghth

ereis

entries

for

job

offers,

qu

alification

of

app

licants

do

esn

ot

satisfyco

mp

any’s

requ

iredlevel

76.0%

Company takingaccount ofsatisfy both joband life

Ratio of labourers tobe conscious ofattainment of theirability exertion.

63.5％

Under the labour shortage, human resources must be prevented separation from service and human resource abilitiesidentified.

As job transfer’s reasons, “Work is hard and the stress is enormous” occupies a high rate. On the other hand, severalbusinesses that engaged with the “Smoothing of in-house communications” and “Contraction of working hours,” havehigh labour retention rates. It is necessary to implement such employment management to lead to continued employment.

In addition, it is important that labourers exert their abilities. In the businesses that engage in lifting employeemotivation, human resources development, or supporting a work-life balance have a high ratio of labourers able to usetheir skills, indicating the need for businesses to actively pursue employment management.

23.0 22.921.9

20.8

18.0 17.6

15

20

25

仕事がきつい・ストレス

が大きい

賃金が安い

キャリアアップ

会社の将来性、安定

性に対する不安

会社の倒産、事業所の

閉鎖

労働時間が長い

転職理由

※労働者調査（％）

Chapter 3 Toward a Society Where Everyone can Play an Active Role in the face of Population decline－Challenges of Companies/Labourers aiming to Play an Active Role for Limited Human Resources (2) －

64.8 65.0

60.161.4

565860626466

社内コミュニケーション

の円滑化

労働時間の短縮化

企業の雇用管理の取組状況と現在の勤務先で、引き続き働くことを希望する労働者の割合

※企業調査・労働者調査

実施している企業実施していない企業

（％）

16

62.0％

78.2％

Ratio of labourersto be conscious ofattainment of theirability exertion.

Relations between condition of positive employment management in business and employees’ ability exertion *Labourers survey

Reason of job transfer*Labourers survey

Tacking situations of businesses’ employment management and ratio of labourers to hope to ongoingly work in present company

*Business survey/Labourers survey

65.0

Smoothing of in-house communications Contraction of working hours

Implementing businesses Not implementing businesses

Wage

islow

Work

ish

ard/stress

ish

eavy

Career-u

p

Con

cernab

out

comp

any’s

futu

rean

dstab

ility

Con

cernab

out

comp

any’s

ban

kru

ptcyan

dclosu

re

Work

ing

hou

ris

long.

Source: Prepared based on “Survey on current status of a shortage of human resources (2016)” , “Survey on the concept of “how to work(2016)”, (Ind.)The Japan Institute for Labour Policy and Training

Company tobe earnest ofhumanresourcescultivation

Company not to

be earnest of

human resources

cultivation

Company nottaking accountof to satisfyboth job andlife

analysis of the labour economy - mhlw.go.jp of the analysis of the labour economy 2016 with our...

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