Japanese Economy Overview

ECONOMY

        Throughout modern industrial history, Japan has been recognised as an economic powerhouse.  In 1990 its GNP per capita was recorded at AU$32,521.74, the most of any industrialised nation. As of 2014, it boasts the world’s fourth largest economy; amassing a total of AUD$6.26 trillion, (http://data.worldbank.org/indicator/NY.GDP.MKTP.CD). Unemployment is also a low 3.4%, (http://www.stat.go.jp/english/data/roudou/results/month/index.htm). The average annual income is AUD$39739.63, with our target market of office workers earning slightly less at AUD$38584.22, (http://www.stat.go.jp/english/data/nenkan/1431-16.htm). Both figures are higher than the average annual wage in developed nations, (https://stats.oecd.org/Index.aspx?DataSetCode=AV_AN_WAGE).

        Despite the apparent strength of the Japanese economy, it is laced with frailties. Globally recognised as a manufacturer of quality goods through companies such as Toyota and Toshiba, Japan actually produces minimally for the needs of its people a rather relies on imports for their requirements. Such a reliance on imports is highlighted in the fact that over 60% of all food consumed in Japan is brought in from overseas, (https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html). The major reason for the reliance of imported goods is the country’s lack of natural resources; a matter which was appeased by numerous nuclear power facilities. As of 2011 however, Japan no longer produces nuclear power due to the damage the facilities inflicted as a result of the region suffering a tsunami attack, (https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html).

        The nation’s economy is projected to face a further downturn as a result of an aging workforce and declining birth-rates. The pinnacle of the Japanese labour movement witnessed the employment of over 87 million workers. Despite the global trend of an increasing population and greater economic engagement, Chad Steinberg and Masato Nakane (2012) estimate that the number of Japanese workers will fall to a staggering 55 million by 2055.

        An integral component in the future workforce projection figure and decreasing birth rates is the adoption of Western values by Japanese women. The Japanese female archetype lives at home, cares for the children and the house and provides dutiful attention to her husband. They are not viewed in the same vein as males who are responsible for protection and labour and thus fill only 9% of all managerial positions across Japanese firms, (Chad Steinberg et. al, 2012). This lack of flexibility and potential for career progression has led many younger generational women to pursue Western ambitions; having children and marrying later, as well as coupling part-time office work with leisure and travel. It is stated by Assman (2014) that over 90% of all part-time workers in Japan are females.