Japan’s labour force participation rate has risen by around 8 million, or 12%, since 2012, thanks largely to increased numbers of women and seniors entering the workforce. But that trend hasn’t survived the pandemic and Marcel Thieliant, the head of our Japan coverage, says persistent demographic headwinds will leave the country by 2050 with a labour force that’s around 17% smaller. Even if participation rates did continue to rise, Japanese women and the elderly work far fewer paid weekly hours than working-age men. “The upshot is that total labour input will almost certainly fall over the coming years,” Marcel says.
Related link: Japan's participation rate set to fall further
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- Marcel recently analysed the impact on household consumption of greater nervousness among Japanese seniors about catching COVID-19.
- Vicky Redwood, our Senior Economic Adviser, examined whether the pandemic would cause permanent damage to labour force participation rates in advanced economies.