- 14 Mar 2002
- 21,056
- 18,912
Did you know that Japan's female labour participation rate surpassed that of the U.S. in 2015?
Japan's economy has recently made headlines due to inflation's return, worker wage gains, and the Bank of Japan's first interest rate increase in 17 years. However, a longer-running trend that may intrigue American policymakers is the steady rise in female employment. Over the years, working-age Japanese women have increasingly entered the labour market. This trend has intensified recently, driven by a tight labour market that compels companies to attract new employees. The surge in female participation is partly a result of deliberate efforts. Since around 2013, the Japanese government has worked to create female-friendly public policies and corporate culture. They aimed to tap into a new talent pool as Japan's ageing and shrinking labour market posed challenges.
Even economists like Adam Posen, who advised on the "womenomics" policies, were surprised by the sheer number of Japanese women now choosing to work. Initially estimating around 800,000 new female workers at that time, the actual figure was closer to three million, although many were part-time employees. Economists often grapple with predicting the impact of policy changes, and Japan's experience underscores the importance of considering societal shifts and evolving norms in workforce dynamics.
Japan's economy has recently made headlines due to inflation's return, worker wage gains, and the Bank of Japan's first interest rate increase in 17 years. However, a longer-running trend that may intrigue American policymakers is the steady rise in female employment. Over the years, working-age Japanese women have increasingly entered the labour market. This trend has intensified recently, driven by a tight labour market that compels companies to attract new employees. The surge in female participation is partly a result of deliberate efforts. Since around 2013, the Japanese government has worked to create female-friendly public policies and corporate culture. They aimed to tap into a new talent pool as Japan's ageing and shrinking labour market posed challenges.
Even economists like Adam Posen, who advised on the "womenomics" policies, were surprised by the sheer number of Japanese women now choosing to work. Initially estimating around 800,000 new female workers at that time, the actual figure was closer to three million, although many were part-time employees. Economists often grapple with predicting the impact of policy changes, and Japan's experience underscores the importance of considering societal shifts and evolving norms in workforce dynamics.
Japan’s Labor Market Has a Lesson for the Fed: Women Can Surprise You
Japan’s improved labor force participation for women is a reminder not to assume that job market limits are clear and finite.