Japan's Job Market Struggles in the Face of Rising Prices
As prices continue to rise in Japan while wages stay stagnant or decrease, many Japanese citizens are struggling financially due inadequate salaries offered by employers. Government initiatives have failed thus far but drastic action must be taken if Japan wants its economy and job market remain competitive in the future.
Dec. 25, 2022 8:37AM
Generated in 20.9 seconds
A picture of Tokyo skyline at night with bright lights illuminating buildings against a dark sky
As the cost of living continues to rise, job seekers in Japan are finding it increasingly difficult to make ends meet. Indeed and other job search sites have revealed a stark reality for many Japanese citizens; wages have decreased significantly since before, with most jobs offering salaries of around 30,000 yen or less. This has led to a bifurcation of the job market; those who can afford to be salaried employees are still able to do so, but for everyone else, freelancing and side gigs may be their only option. The situation is especially dire for young people entering the workforce. With high tuition costs and rising rent prices, many college graduates find themselves unable to secure stable employment that pays enough to cover their basic needs. The lack of jobs paying livable wages has caused some graduates to delay marriage or even put off having children altogether due to financial concerns. The government has attempted to address this issue by introducing measures such as tax breaks for small businesses and incentives for companies that hire new graduates. However, these efforts have yet to bear fruit and there is no sign that the situation will improve anytime soon. With an aging population and a shrinking labor force, Japan must take steps now if it wants its economy and job market to remain competitive in the future. Without drastic action from both public and private sectors alike, Japan’s economic prospects could become bleak indeed.