The conclusive reasons for why the income of Japanese people have almost not increased at all. From an international standpoint, Japan is already losing its competitive edge.
1. [+769 / 32]
According to the latest statistics released by the National Tax Agency, the annual income of Japanese people rose in 2018. The average annual income is around 4.4 million yen (US$44,000).
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| The average income has seen an upward trend but is still lower than the average income in the 90s. |
Although the average income is now 4.4 million, it has merely gotten closer to the average income in 2007 before the economic downturn in 2008. Furthermore, it is still lower than the average income in 1997 of 4.67 million yen (US$46,700).
Reason 1:
Lies with the manufacturing industry in Japanese society
The manufacturing industry's "lifetime employment" and "everyone receives the same stable salary" is the reason for the low salaries in Japan today.
Reason 2:
Low job mobility
Fundamentally Japan is a country with low employment mobility, where people: 'do not change their occupation', 'do not quit' and 'are not fired'. Even if someone does change their job, very rarely can they get an administrative position, which is the one of the causes of the decrease in job mobility. Consequently, salaries tend to be low.
14. [+1027 / -34]
>>1
Fundamentally Japan is a country with low employment mobility, where people: 'do not change their occupation', 'do not quit' and 'are not fired'.
That's no longer the case now, right?
>>1
Fundamentally Japan is a country with low employment mobility, where people: 'do not change their occupation', 'do not quit' and 'are not fired'.
That's no longer the case now, right?
2. [+3028 / -44]
They should just lower the income tax and raise people's salaries
Temporarily
3. [+1141 / -2]
Toyota stopped doing lifetime employment, right?
4. [+339 / -14]
Already knew all this
5. [+3777 / -17]
Your income being lower than it was in the 90s even when taxes have risen is tough...
6. [+586 / -151]
So wages have risen overseas?
I don't think that's the case, though.
7. [+1757 / -18]
Could it be because the taxes aren't being used in places it should be?
9. [+1634 / -61]
There are people who have a yearly income of 100 million yen (US$1,000,000) and people who just earn 3 million yen (US$30,000) a year, but even 3 million yen feels high to me.
I'm around fifty and my yearly income is around 2.2 million yen (US$22,000).
10. [+695 / -31]
They hire 20 people and pay them the average income of one Japanese person, the labour to profit ratio is too bad. It can't be helped.
11. [+1629 / -23]
It's a complete deflationary spiral.
This is the result of the consumers' excessive demand for cheap things.
The salary of company employees (workers) end up decreasing.
When I go to Europe or America for holiday, the price of commodities is really expensive.
But their salaries are also good, right?
12. [+1386 / -17]
Apparently, the pay in Japan is a third of the pay in America.
I wonder what will happen in the future.
13. [+755 / -19]
Can't companies keep less money to themselves and pay more to the employees?
15. [+1165 / -9]
It's true that I had a small pay rise.
But taxes were raised which more than cancelled it out so I can't say that my lifestyle got any better.
17. [+2194 / -23]
Manufacturing and skilled labour is worth way too little.
Why are the people working in sales paid more than the people who make the product?
Both are indispensable jobs but you can't do anything if there are no goods.
Japan has no resources so it had to survive off manufacturing and production. Because of that, manufacturing quickly became a place of cheap labour but it's now reached its limits.
18. [+766 / -9]
Yet in less than ten years apartment prices have gone up by a third.
19. [+431 / -191]
Make NEETs work in factories.
I'm a city council employee and my colleague, who works as a care manager, told me, "There are quite a lot of parents at an advanced age still working to support their families." I shivered when I heard that.
20. [+1048 / -39]
I'm a nurse but my salary is roughly the same as someone with an office job.
Despite it being a really demanding job because the number of elderly has increased and we're always shorthanded.
27. [+449 / -117]
>>20
Impossible w You must not work night shifts or you work in the remote countryside.
I'm a government worker, my little sister is a nurse and she earns twice as much as I do.
>>20
Impossible w You must not work night shifts or you work in the remote countryside.
I'm a government worker, my little sister is a nurse and she earns twice as much as I do.
21. [+438 / -1]
The work-style reform was the finishing blow. It's tough.
*The Work Style Reform Bill was enacted in July 2018 - 8 labour laws were amended.
22. [+786 / -2]
People nowadays who need money to raise their family don't earn as much as the people of the same age before. It's natural that the economic climate will worsen.
23. [+744 / -10]
Uhhh but there's heaps of money hoarded away in the companies' internal reserves...
24. [+397 / -5]
Where did the quantitative easing money go?
25. [+404 / -14]
The value of money has dropped too.
26. [+906 / -27]
It's because they're taxing us over and over again to pay for old people's pensions and doctor fees.
So long as birthrates continue to decline, and the aging population keeps growing bigger, our salaries won't rise.
28. [+1320 / -24]
If Japan is losing its international competitive edge, then stop handing out money to developing countries.
The United Nations won't let Japan be a permanent member so I think we should stop giving away money and leave it.
I think they should tell the United Nations, if you let us be a permanent member, then we'll contribute.
29. [+880 / -27]
Seniority by length of service, lifetime employment, batch recruitment are all really inefficient. Everyone is the same so no one has any motivation and productivity is low.
The talented and experts go overseas to work.
The country is run by the senile elderly. Young people go to university to play.
There's no point in just bashing Koizumi's temporary work system.
*Koizumi Junichiro reformed the law for casual employment when he was prime minister, accelerating the growth of part-time work.
The whole nation are fools.
31. [+1020 / -16]
I know I might get downvoted but the pay in Japan today has fallen to the same level of Korea.
Or rather, the pay in Japan has changed so little, other countries have caught up.
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