A highlight of news briefs and articles related to employment issues in Japan, as well as general business and industry.
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An end-of-week summary of Japan-related news. Stories on Japan covering several subjects, sourced from a variety of news providers, in 15-minute podcast form.
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Food company president arrested for undercooked beef product
Nov 20, 2024
A meat processing company in Oita Prefecture marketed a beef liver product as 'raw liver flavor,' but it was found to be inadequately heated, violating food safety laws. The product, resembling raw beef liver, was sold online and generated significant revenue. It was also offered as a return gift in a hometown tax donation program but has been suspended after allegations of insufficient heating.
The company president and another individual were arrested for their involvement. Authorities are investigating, with Oita Prefecture planning to issue a production halt order once all facts are confirmed.
Women changing jobs, homemakers returning to workforce more frequently
Nov 20, 2024
In 2023, there was a significant increase in the number of women changing jobs in Japan, especially those in their 40s. The belief that job changes were limited to those under 35 is fading, as experience in housework and childcare is now valued by employers. Many women in their 40s are transitioning to administrative roles, IT engineers, and clerical positions.
The shortage of human resources is driving this trend, with skills acquired in housework and childcare being seen as valuable assets in the job market. Recruit Agent recommends individuals reflect on their strengths and efforts to effectively promote themselves during job changes.
Japan’s English ranking continues to slip
Nov 16, 2024
Japan has ranked a record low of 92nd in the 2024 English proficiency ranking out of 116 countries and regions where English is not the native language. The ranking is the lowest on record, indicating stagnant English proficiency among young people in Japan compared to other countries.
The EF English Proficiency Index is based on tests taken by 2.1 million people in 2023, with Japan scoring 5 places lower than the previous year. The decline in Japan's ranking has been consistent since 2011, with a decrease in motivation due to the pandemic being one possible reason.
Price pressure allows for Taiwanese rice sales at Seiyu
Nov 15, 2024
Major Japanese supermarket chain Seiyu began selling Taiwanese rice brand "Musubi no Sato" due to soaring rice prices in Japan. The Japonica rice is about 20% cheaper than domestically harvested varieties but closely resembles the flavor and texture of Japan-grown rice.
Priced at nearly 2800 yen for 5 kilograms, the product is available at 138 Seiyu stores in east Japan.
Prices of domestic rice remain high, prompting Seiyu to offer a more affordable option for customers. The decision to sell Taiwanese rice was made in response to the serious rice shortage in Japan.
Fathers using paternity leave uncomfortable doing so
Oct 26, 2024
Around 40% of men in Japan feel uncomfortable returning to work after taking paternity leave, fearing the burden it places on colleagues. Employers are urged to address staffing shortages and provide benefits for co-workers to support those taking paternity leave without hesitation. An online survey by Meiji Yasuda Life Insurance Co. reveals that out of 550 married men with young children, 33% took paternity leave for an average of 42 days, with many feeling varying degrees of awkwardness upon their return.
Voice actors grumble about non-authorized AI use of their voices
Oct 22, 2024
A group of voice actors in Japan, including well-known figures like Koichi Yamadera and Yuki Kaji, are calling for regulations on the use of generative artificial intelligence to create audio and visual content mimicking their voices without permission. The Japan Actors Union has reported cases of AI-generated content being used without consent, including popular animation characters singing songs not part of the original works. The group of voice actors plans to release campaign videos to raise awareness and advocate for guidelines to establish boundaries between acceptable and unacceptable use of synthesized voices.
Survey: ‘dogeza’ apologies insisted upon by high number of customers
Oct 22, 2024
A recent survey found that nearly half of companies in Japan have been pressured by clients to make employees apologize in a kowtowing, on-their-knees manner, with 70% reportedly complying. The survey by After Call Navi Co. also revealed that many companies compromise this way to quickly resolve customer harassment incidents. Tokyo recently enacted an ordinance to prevent customer harassment but challenges remain in determining what exactly constitutes harassment and ensuring effective enforcement. The survey highlighted the need for clearer standards and continual training for employees to respond consistently.
PayPay starts cashless wage payment operations
Oct 19, 2024
Digital wage payments have begun in Japan with PayPay becoming the first to receive government approval under a cashless drive. Ten SoftBank Group Corp. companies, including PayPay Corp., are now offering employees the option to receive up to 200,000 yen of their salary through the app. This move follows a decision by the labor ministry to allow digital wage payments from April 2023. PayPay aims to increase employee benefits and expand its economic sphere with over 65 million registered users. The system also includes safeguards such as a 1 million yen balance limit to protect users' funds.
Bandai Namco hoping for staff reductions following game cancellations
Oct 13, 2024
Japanese game company Bandai Namco is reportedly facing staff reductions and canceling projects, including one for Nintendo. The company has allegedly been sending employees to "expulsion rooms" with nothing to do, possibly pressuring them to resign. Leaving workers in limbo without work or assigning them with non-essential work is a commonplace method in Japan to encourage quitting, labor-protection laws making it very difficult to effect layoffs or firings. This comes following the cancellation of several games due to low demand, causing financial losses. Bandai Namco denied pressuring staff to leave voluntarily but confirmed game cancellations, and stated that its employees are waiting for new projects.
Asia Power Index drops Japan to fourth place
Oct 12, 2024
Japan has fallen to fourth place in the Asia-Pacific region, behind India, due to economic stagnation. The Asia Power Index evaluates nations’ influence using 131 indicators, ranking the US first, followed by China. Japan's technological advantage has declined against competitors like South Korea and China, leading to a decrease in foreign investment and declining productivity. However, Japan has seen a rise in defense networks, with increased defense spending and training exercises with non-allied countries. India, with its youthful population, improved significantly in rankings, along with Indonesia.
Rapidus set to open R&D chip center in Hokkaido
Oct 4, 2024
Japanese semiconductor maker, Rapidus, is establishing a research and development center for back-end manufacturing processes in Hokkaido, aiming at domestic production of advanced semiconductors. The company plans to start post-processing R&D in Chitose City by April 2026. Back-end processes involve assembling circuit pieces and separating them from wafers. Rapidus is constructing a manufacturing plant and aims to begin mass production by 2027. They are also researching front-end processes and collaborating with potential customers to address challenges in technology development and investment.
Consumer goods prices, postal rates going up this week
Sept 30, 2024
From Tuesday, the prices of about 3,000 food and drink items are set to increase along with postal rates in Japan. Factors contributing to the price hikes include higher costs of imported raw materials, a weak yen, and increased transportation rates. Various companies such as Asahi Soft Drinks, Ito En, and Koike-ya are planning price increases on their products. Japan Post will also raise postage rates for letters and postcards, citing declining mail volumes and the need to adapt to digitalization. Incoming Prime Minister Shigeru Ishiba has promised to take measures to mitigate the impact of rising consumer prices on households.
National teacher shortage on the increase
Sept 30, 2024
An NHK survey reports that there is a severe shortage of school teachers in Japan, particularly in elementary, junior high, senior high, and special needs schools. The survey conducted by the public broadcaster revealed that 43 local governments had data on teacher shortages in September, with schools being short of a total of 2,397 teachers. This marked a 1.3-fold increase from May, with difficulties finding substitutes cited as the main reason for the shortage. The Chiba prefectural education agency in Chiba Prefecture had the highest number of teacher shortages at 94, and is working to swiftly address the issue.
Japan finding US relations unsteady due to politics
Sept 12, 2024
The $15 billion acquisition attempt by Nippon Steel of US Steel may fail due to political factors. Japanese companies have been investing in the US, but concerns about foreign ownership of US assets and opposition from political campaigners like Donald Trump and Kamala Harris have complicated the situation. Questions have been raised about Japan's trustworthiness as an ally and owner of US assets, which has increased uncertainty about potential changes in US policy towards foreign investments. For Japan, it also highlights the need for a deeper understanding of US-Japan relations and the impact of election politics on M&A deals.
Foreign investment returns at record surplus
Sept 11, 2024
Japan recorded a current account surplus of 3.2 trillion yen in July, driven by high returns on foreign investments due to a weak yen. Primary income, including dividends and interest from overseas investments, reached 4.44 trillion yen, the highest since 1985. This marks the 18th consecutive month of surplus. The yen's depreciation against the U.S. dollar and euro also boosted investment returns. However, Japan saw a trade deficit of 483 billion yen, as imports outpaced exports. The travel surplus hit a record high in July, with a significant increase in foreign visitors.
McDonalds’s et al relaxing employee hair color restrictions
Sept 11, 2024
McDonald's Japan has lifted its hair color restrictions for employees in an effort to improve the working environment and attract more workers. The fast food chain previously required natural hair colors but has now allowed more diversity in appearance. This new policy, tested in an Osaka outlet, has led to a threefold increase in new recruits compared to the previous year. McDonald's also changed its appearance policy in August 2021 to allow employees to grow beards for reasons including religion. Other companies in Japan, such as Food & Life Companies and Starbucks, have also revised their dress codes to give employees more choice in their appearance.
Higher pay rewards Japan sushi chefs overseas
Sept 6, 2024
The demand for sushi chefs overseas has led to lucrative opportunities for professionals, as seen with Hitoshi Oyamada who moved to Singapore during the pandemic and tripled his income compared to working in Tokyo. Despite initial challenges at an izakaya pub, Oyamada developed negotiation skills and now enjoys a comfortable lifestyle in Singapore. Japanese sushi chefs are highly sought after internationally, with top chefs earning significantly more than the average salary in Japan. This trend, along with the weak yen, offers attractive prospects for professional chefs looking to advance their careers and earn higher incomes abroad.
Dairy farmers desperately moving into wagyu beef business
Sept 3, 2024
Despite low prices of Japanese wagyu beef, dairy farmers are turning to wagyu breeding to sustain their operations. Japanese Black wagyu calves are being sold at reduced prices, causing a decrease in wholesale wagyu prices as well. Still, the volume of Japanese Black wagyu calves being traded is increasing as dairy farmers shift towards wagyu breeding to boost revenue. Though breeding wagyu calves can be expensive and risky, demand for milk has been dwindling largely due to the shrinking Japanese population. This trend of dairy farmers entering the wagyu breeding business is expected to continue, potentially driving wagyu calf prices even lower.
Toyota to resume production following scandal
Sept 2, 2024
Toyota Motor is resuming production of three cars after halting manufacturing due to a data falsification scandal. The two Corolla models and the Yaris Cross will go back online in Japan after receiving a government order to halt shipments in June. The order was lifted in July after confirming compliance with safety standards. Test data irregularities were disclosed by transport authorities in July, with Toyota submitting a report in August outlining steps to prevent future wrongdoing. The company also pledged to improve legal compliance and internal inspections. Toyota is also reopening 13 plants in Japan closed due to Typhoon Shanshan.
Promotion of four-day workweek
Sept 2, 2024
Japan is promoting four-day workweeks to address a labor shortage, emphasizing work-life balance and flexibility. However, the initiative has faced challenges in gaining traction, with few companies making changes. Companies like Panasonic Holdings and Fast Retailing offer this option, with the trend spreading to industries like finance. Critics argue employees may work harder for less pay, but advocates believe flexible hours are crucial for retaining workers. Despite Japan's traditional work culture valuing long hours, attitudes are shifting as more companies offer alternative arrangements.
Singtel, Hitachi to develop data centers across Japan
Aug 26, 2024
Singtel's regional data centre arm, Nxera, is collaborating with Hitachi to develop data centres in Japan and the wider Asia-Pacific region. A memorandum of understanding, announced on Monday, was signed between the companies, expanding on a previous partnership to integrate their Paragon platform with Hitachi's AI applications. Hitachi will explore using Singtel's GPU-as-a-service for its AI applications, enhancing digital technologies. The partnership aims to create more power-efficient methodologies for enterprise sustainability goals. Both companies may co-create enterprise applications combining their technologies. Singtel executive Bill Chang said the partnership will help enterprises innovate and transform through cloud and AI in the expanding Japanese market.
Japan Inc. investing in Australian coal
Aug 22, 2024
Japan's Nippon Steel Corp. and JFE Steel Corp. are investing 160 billion yen in an Australian coal mine to secure high-quality coal for eco-friendly steelmaking. Nippon Steel will acquire a 20% stake in the Blackwater mine for 108 billion yen, while JFE Steel will get a 10% stake for 54 billion yen.
The mine, owned by Whitehaven Coal Ltd., produces 10 million tons annually and has enough resources for 30 years. Nippon Steel aims to diversify its resource sources and has also invested in a Canadian mining company.
ALTs facing ever-poorer wages
Aug 20, 2024
Assistant language teachers (ALTs) play a crucial role in English language education in Japan, but many struggle to make a living wage. Jesse Ali, an ALT from California, has faced financial difficulties despite 15 years of teaching, including debt and inability to afford basic necessities. Ali, like other ALTs, works long hours for low pay, often going without meals and barely making ends meet.
The increasing use of ALTs from private companies instead of government programs such as JET has led to lower salaries, dissatisfaction, and high turnover rates in the profession. Without adequate support and fair compensation, the quality of English education in Japan will suffer.
Tokyo Metro plans IPO
Aug 19, 2024
Japan's national and Tokyo governments are targeting a 700 billion yen valuation for Tokyo Metro, planning to list the subway operator by the end of October. This IPO, the country's largest in six years, aims to raise 350 billion yen by selling half the company. Tokyo Metro, established in 1920, operates 195 kilometers of lines with 6.5 million passengers daily and reported strong profits in the latest financial year.
The government intends to use the funds to repay reconstruction bonds.
Tokyo Metro plans IPO
Aug 19, 2024
Japan's national and Tokyo governments are targeting a 700 billion yen valuation for Tokyo Metro, planning to list the subway operator by the end of October. This IPO, the country's largest in six years, aims to raise 350 billion yen by selling half the company.
Tokyo Metro, established in 1920, operates 195 kilometers of lines with 6.5 million passengers daily and reported strong profits in the latest financial year. The government intends to use the funds to repay reconstruction bonds.
Female presenter’s anti-male comments costs her contract
Aug 15, 2024
Freelance announcer Yuri Kawaguchi faced backlash and had her contract terminated with her agency after posting about men's body odor. She apologized for her comments, but her agency cited "inappropriate postings that defame the opposite sex" as the reason for termination. The incident sparked debate on social media, with some defending Kawaguchi and questioning the agency's response, while others criticized her for being discriminatory towards men. Legal experts warn that such conflicts between men and women online may escalate in the future.
Ramen shops struggling, facing closures
Aug 12, 2024
Ramen shops in Japan are struggling due to inflation, rising raw material costs, and a weak economy. Many shops are on the verge of closure, with the number of bankruptcy cases increasing by 114% in 2023, the Kanto and Chugoku regions being particularly affected.
Rising costs of ingredients like pork and wheat, along with high electricity prices, are pressuring ramen shops which rely on slow heating processes. Despite the challenges, some shops are hesitant to raise prices for fear of losing customers.
Japan debt reaches new high
Aug 12, 2024
Japan's state debt has reached a record high of 1,311 trillion yen, surpassing the 1,300 trillion yen mark for the first time, highlighting the country's precarious fiscal situation.
The debt has grown due to increased spending to support households affected by rising inflation, exceeding Japan's 600 trillion yen economy. The Bank of Japan is beginning to raise interest rates and reduce its purchases of government bonds to achieve its 2 percent inflation target.
The government relies on debt issuance to cover a significant portion of its annual spending, as it grapples with the challenges posed by the COVID-19 pandemic and rising living costs.
Joint parental custody by 2026
Aug 6, 2024
A new legal reform in Japan will introduce joint custody for divorcing couples by 2026, transitioning from the long-standing sole parental custody system. The aim is to promote shared responsibility for child-raising costs, enhance parent-child relationships, and align with international norms. However, concerns have been raised about potential risks such as domestic violence and increased court caseloads.
A recent public survey showed varied opinions on joint custody, with some emphasizing the benefits of children receiving love from both parents, and over half of respondents unaware of the upcoming legal change. To effectively implement joint parental custody, it would appear the government needs to address child abuse issues and establish support mechanisms.
My Number Card to be supplemented by new app
Aug 5, 2024
The Japanese government has announced a new app to verify the legitimacy of the My Number Card, a national identity document introduced in 2015. The card was meant to streamline government services but has faced issues like data breaches and counterfeit cards. The app will use a smartphone camera to confirm card details and will be mandatory.
Developers are currently testing the app, and it is expected to be released in August. Japan aims to increase adoption of the card, with plans to replace health insurance cards with the My Number ID cards soon.
Paternity leave rates high, not high enough
Aug 5, 2024
In fiscal year 2023, 30 percent of male employees in Japan took paternity leave, a significant rise from 17 percent the previous year. The government mandated in early 2023 that companies inform employees of paternity and maternity leave options, which has increased the rate of parental leave, but still seems far from the target of 50 percent paternity leave rate by 2025.
The length of paternity leave has also increased, although smaller companies are showing lower rates, possibly due to labor shortages and greater difficulty replacing outdated work regulations.
Toyota admits to further testing falsifications
Aug 1, 2024
Toyota admitted on Wednesday to further cases of cheating on certification tests required by the Japanese government for new models. The company failed to properly certify seven models, including the Camry sedan and RAV4 SUV, for pedestrian protection, side collisions, and steering impact.
Despite the misconduct, there were no safety concerns for consumers. Toyota's chairman apologized for the irregularities and assured stakeholders that corrective actions are being taken. Production of some models in Japan was temporarily halted, and the company is working to improve its corporate culture and work habits.
Shift in wagyu beef preferences
Aug 1, 2024
A survey by Japanese food culture magazine Dancyū found that readers prefer lean wagyū beef over marbled meat by a three-to-one ratio. Respondents indicated a shifting of tastes away from the finely marbled beef varieties, with factors such as price, domestic or imported origin, lean meat content, and meat color influencing purchases.
Cost and origin were considered important to over 60% of readers; around 35% said leanness and color were important factors in their purchasing choices. This indicates a changing trend in the wagyū market towards lean beef, challenging the dominance of marbled varieties.
Honda reducing China-based production
July 26, 2024
Honda Motors will close one factory in China and halt vehicle production at another plant as it focuses on producing more electric vehicles in the face of competition from Chinese brands. The automaker will close a plant in October and pause production at another factory in November, reducing its annual production capacity in China. Honda plans to optimize its output by starting production at two new electric vehicle plants later this year in collaboration with Chinese automakers. Japanese brands like Honda and Nissan are facing challenges in the Chinese market due to the rise of domestic automakers, leading to potential strategic partnerships in the EV sector.
Amazon to sell and deliver pharmaceuticals
July 26, 2024
Amazon.com Inc has launched online prescription and medicine delivery services in Japan in partnership with 2,500 drug stores. The new service, Amazon Pharmacy, allows consumers to get electronic prescriptions after online diagnosis or at hospitals/clinics. This service aims to help people with chronic health issues who regularly need prescriptions. Users can receive medication guidance through video chats with pharmacists via their Amazon accounts. The service also offers home delivery or pick-up at nearby pharmacies. Amazon Japan plans to work with more pharmacies, including smaller ones. The move could pose challenges for small pharmacies lagging in digitalization.
Foreign nationals up, Japanese nationals down
July 25, 2024
The number of foreign nationals living in Japan has reached a record high, while the country experienced its largest-ever yearly drop in Japanese citizens. With a dwindling birth rate, Japan has one of the world's oldest populations, second only to Monaco. Prime Minister Fumio Kishida has implemented policies to increase birth rates, acknowledging the need to sustain society. The government is also exploring immigration reforms to attract more overseas workers. The increase in foreign residents is attributed to the easing of pandemic-related border restrictions, which had prevented international students and workers to return to Japan.
Visa offices raided; suspected of unfair practice
July 17, 2024
Japan's antitrust watchdog is investigating Visa Inc.'s Japanese unit for allegedly pressuring credit card companies to use only its credit information system, potentially stifling competition. Visa is suspected of charging higher fees to companies that did not use its network, forcing them to switch or stop using rivals' networks. The Japan Fair Trade Commission conducted an inspection at Visa's office in Tokyo. The investigation will also look into Visa's Singaporean unit and its U.S. headquarters. Visa is the most used credit card brand in Japan, accounting for half of the market share.
Push for foreign residents to join Japan pension system
July 8, 2024
A recent fiscal assessment of Japan's pension system revealed that the number of foreign residents in the country directly impacts pension benefits. As of 2023, there were 3.41 million foreign nationals in Japan, with permanent residents and technical intern trainees being the largest groups. The assessment predicted a continued net inflow of foreigners, with uncertainties such as birth rates and foreign influx potentially impacting the income replacement ratio. The assessment presented three scenarios, with efforts to encourage more foreign residents to enroll in the public pension system for long-term living in Japan ongoing.
Wages at new high in 33 years
July 4, 2024
A survey by Japan's largest labor organization, Rengo, found that workers received the highest average pay hike in 33 years during this year's wage negotiations. The survey, covering over 5,200 companies, revealed an average monthly pay raise of 15,281 yen or about 95 dollars, marking a 5.1 percent increase. While small and medium-sized businesses saw a 4.45 percent raise, larger companies with 1,000 employees or more had higher increases. Rengo aims to continue improving wages for working families by creating conditions for smaller businesses to offer pay raises.
Airlines introduce anti-abuse policies
July 2, 2024
Japan Airlines and All Nippon Airways have introduced new policies to address customer harassment towards airline staff, with behaviors such as abuse, threats, assault, and unreasonable demands being listed as harassment. This comes amidst a rise in abusive incidents towards front-line workers in Japan. The airlines are offering training for staff on handling abusive customers and providing support for employees' mental and physical health. Incidents of customer harassment have been increasing globally, and Japan has not been immune, prompting the implementation of stricter measures to protect airline employees.
Japan to launch new banknotes on July 3, 1st design change in 20 years
July 1, 2024
Japan is set to release new banknotes featuring cutting-edge holography to prevent counterfeiting. The updated 10,000, 5,000, and 1,000 yen bills will have larger face value numbers for easy recognition, and will feature historical figures like industrialist Eiichi Shibusawa, educator Umeko Tsuda, and microbiologist Shibasaburo Kitasato. Tactile marks will help visually impaired individuals distinguish the notes. By March next year, 7.5 billion new banknotes will be circulated alongside existing ones. The new notes come alongside efforts to increase digital payment adoption, with Japan falling short of its 2023 target of 40%.
Anticompetition practices by Apple & Google to be restricted
June 13, 2024
Japan's parliament passed a law aimed at promoting competition in smartphone app stores by preventing tech giants Apple and Google from restricting third-party companies. The law prohibits Apple and Google from blocking apps that compete with their own, as well as giving priority to their own services in search results. Violations of the law will result in significant fines, with penalties increasing if anticompetitive practices continue.
The legislation is set to take effect by the end of 2025 and follows similar regulations introduced by the European Union. The Fair Trade Commission will monitor the tech giants to ensure compliance with the new rules.
Government calls for gender wage gap data
June 13, 2024
The Japanese government is considering expanding the requirement for companies to release gender wage gap data in an effort to address the pay disparity between men and women. Currently, companies with more than 100 employees would be expected to release such data, compared to the previous requirement for companies with over 300 employees. The government aims to submit a bill to introduce this requirement to the Diet in 2025.
The wage gap in Japan is at 21.3 percent, higher than other countries like the United States, France, and Italy. The government also aims to increase the percentage of female board members in companies listed on the Tokyo exchange.
Proposed changes to marriage name legislation
June 11, 2024
The Japan Business Federation, also known as Keidanren, has pushed for a selective dual surname system for married couples in order to provide more flexibility and options in life and career choices. The proposal aims to allow individuals to maintain their own family name upon marriage.
A survey conducted by Keidanren revealed that 88% of female executives from member companies experienced disadvantages or inconveniences due to the use of their maiden names, such as issues with contracts or problems at airports and hotels abroad. The Justice Ministry council had previously recommended a revision to the Civil Code to introduce a dual surname system back in 1996. Keidanren supports this recommendation and calls for further discussions and a speedy resolution to the issue.
Convenience stores allow nametag changes
June 10, 2024
Convenience store chain Lawson has announced a change in its uniform policy, specifically regarding employee name tags. To create a more secure working environment for store staff, Lawson will now allow employees to choose to wear name tags with Latin alphabet letters, such as their initials or an abbreviation of their name, instead of their family name in Japanese text. This decision aims to protect workers' privacy and shield them from potential verbal abuse, following incidents of malicious customer complaints.
Lawson's revised name tag policy follows a similar decision made by fellow convenience store chain FamilyMart. Lawson has also updated its employee dress code to allow head coverings worn for religious reasons, such as hijabs, reflecting the increasing diversity in Japan's convenience store labor force.
Sleep survey: Japanese sleeping more
June 10, 2024
According to a recent survey by Japanese watchmaking giant Citizen Watch, the proportion of Japanese working adults who sleep five hours or less a day has decreased to under 12%, down from 23% in 1999.
The survey, conducted on 400 working people aged in their 20s to 50s, found that 36% reported sleeping six hours, while 52% reported sleeping seven hours or more.
The Japanese health ministry recommends at least six hours of sleep for adults, and the reduction in sleep deprivation is attributed to shorter working hours and more flexible work styles.
Service industry addresses culture of abusive customers
June 4, 2024
In Japan, the concept of the customer being treated like royalty is being revisited due to increasing incidents of customer harassment, leading to mental health issues and job resignations among service sector workers. This has prompted authorities to consider legislation to protect staff from abusive behavior. The labor ministry is looking at requiring firms to create manuals on how to handle abuse, while the Tokyo government plans to define customer harassment in an ordinance. Some companies, such as West Japan Railway Co., are already taking steps to address the issue by implementing policies to stop service or sales to abusive customers.
A survey conducted by a major industrial union, UA Zensen, found that nearly half of service sector workers experienced customer abuse in the past two years, with the most common forms being abusive language, intimidation, and repetitive complaints. One respondent mentioned being yelled at so loudly that it could be heard throughout the entire commercial facility.
The push to address customer harassment is seen as crucial for ensuring the safety and well-being of employees in order to provide quality service.
Japan automakers halt production following falsified testing
June 4, 2024
Two of five Japanese companies involved in vehicle safety test scandals are suspending production of affected models. Toyota will stop producing Corolla Fielder and two other models in Miyagi and Iwate prefectures, while Mazda will suspend production of Roadster RF and another vehicle in Hiroshima and Yamaguchi prefectures. Yamaha has also suspended shipments of one motorcycle model.
Concerns are growing about the impact on local economies and business partners. The scandals have already led to economic growth figures falling for the first time in two quarters. The transport ministry revealed that five vehicle makers admitted to falsifying performance tests to obtain certification. Toyota, Mazda, Yamaha, Honda, and Suzuki have uncovered the misconduct during internal probes. The ministry has instructed Toyota, Mazda, and Yamaha to suspend some shipments and ensure vehicles meet national safety standards. Toyota's chairman emphasized the importance of maintaining the certification system, while Yamaha and Mazda have already halted some shipments.
The ministry will conduct onsite inspections of all five companies. This misconduct follows previous cases involving Hino, Toyota Industries, and Daihatsu, prompting the ministry to order checks by 85 domestic automakers and parts companies.
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Original source article 2.
US to send China monitor to Tokyo; potentially provocative
May 20, 2024
The US is increasing its China information monitoring network with its allies by sending an official to Tokyo for the first time in East Asia. This move is seen as a strategy to counter China's growing influence, according to Chinese analysts. They warned that the US deployment aims to not only collect intelligence on China but also control its ally system, potentially disrupting normal economic, political, and security relations between China and its US allies.
The official deployed to the US Embassy in Tokyo will focus on monitoring Chinese governmental and business activities and promoting supply chains for vital goods that do not rely on China. The individual will be part of the Office of China Coordination within the Bureau of East Asian and Pacific Affairs. This deployment is part of the Biden administration's efforts to strengthen intelligence gathering on China, as similar officials have been added to US embassies in other world capitals.
Chinese analysts believe that the US aims to remove Chinese elements from production and supply chains, security frameworks, and economic structures dominated by the US. By placing officials in allied countries, the US may disrupt normal relations between China and its allies, potentially leading to crises and conflicts in the region. To respond to these actions, China must enhance cooperation with US allies, particularly on economic issues.
Japanese investors highly vulnerable to scams
May 20, 2024
As Japan's stock market experiences a boom, investment scams are also flourishing in the country. The shift towards investing among a financially inexperienced population, driven by rising consumer prices and government encouragement to seek higher returns, has made Japan a target for fraudsters. The National Police Agency reported a sevenfold increase in money lost to investment scams in the first quarter of the year, with an average of 13 million yen lost in each case.
The return of inflation and government initiatives to promote investment in Japanese stocks have provided fertile ground for scams to thrive. With traditional education focused on saving and spending rather than investing, many Japanese people are easy targets for scammers exploiting the increased interest in stock trading.
Authorities are taking notice of the situation, with Prime Minister Fumio Kishida announcing plans to combat investment scams and demanding action from social media platforms like Meta, which have been used to lure in victims. Despite efforts to educate the public and crackdown on fraudulent activities, many individuals, like Ms Endo, continue to fall victim to investment scams, resulting in financial loss and shattered retirement plans. The growing awareness of the issue is prompting calls for greater vigilance and measures to protect consumers in Japan's evolving investment landscape.
Non-Japanese convenience store workers up considerably
May 16, 2024
Over 80,000 foreign nationals work part-time in Japan's three major convenience store chains, representing around 10 percent of the part-time labor force. Convenience stores in Japan operate 24 hours a day and offer various services. The number of foreign workers in convenience stores has increased by 1.4 times compared to five years ago, with a significant portion coming from Asian countries like China, Vietnam, and Nepal.
One Chinese national, Lyu Ling, shared her experience working at a FamilyMart outlet in Tokyo, where many customers are Chinese. The store relies heavily on foreign staff, as 80 percent of the employees are from overseas. Some stores struggle to find enough Japanese workers to cover shifts, leading them to hire international students seeking to improve their Japanese skills.
As the number of convenience stores in Japan remains stable, the focus is shifting towards improving value at each outlet rather than expanding the number of stores. Companies are also hiring foreign staff to better communicate with the increasing number of inbound customers due to the yen's weakness attracting more overseas visitors to Japan.
Tokyo izakaya closes after X complaint about foreign customers
May 5, 2024
A restaurant in Tokyo - Kadoya - temporarily closed after the owner's social media rant about a non-Japanese couple who asked for an English menu. The owner criticized the couple for not making an effort to speak Japanese in Japan. The rant received mixed reactions, with some sympathizing with the owner and others calling out the attitude. The owner closed the store due to mental and physical stress but continued to tweet through the controversy.
Many businesses in Japan are struggling to accommodate the influx of tourists, with concerns about language barriers and differing priorities between tourists and restaurants. Translating menus is seen as expensive, and some businesses feel that catering to tourists may drive away regular customers. High-end restaurants are better equipped to cater to foreign diners, but smaller walk-in shops face challenges due to part-time staff and language barriers.
Some restaurants are implementing new strategies to cater to both local and tourist crowds, such as designated nights for locals only or offering multilingual reservation options online. Machine translation apps can also help bridge communication gaps between staff and guests. Hiring a local interpreter is another option to ensure a smooth experience for non-Japanese speakers visiting Japan.
TSE requirement for English disclosure viewed as a burden
April 18, 2024
A Reuters poll has found that nearly all Japanese companies view the Tokyo Stock Exchange's requirement to have top-tier firms disclose key financial statements in English as a burden. The poll also revealed that most firms are considering steps to improve capital efficiency, such as boosting shareholder returns, in response to the TSE's capital efficiency improvement drive.
The survey showed that 91% of respondents considered it a burden to make disclosure in English. Just over half of respondents plan to have a system in place to make disclosure in both Japanese and English by April 2025, when bilingual disclosure becomes a requirement for 1,600 firms on the Prime market. The poll also revealed that 53% of respondents are still considering measures in response to the capital efficiency drive.
Over half of firms plan to boost investor relations activity or invest for growth over the next six months, while 48% aim to boost shareholder returns and restructure their business portfolio.
Machinery orders on the upswing
April 15, 2024
Japan's core machinery orders rose significantly by 7.7% in February, exceeding economists' expectations and indicating a rebound in capital spending. This growth, the fastest since January 2023, followed a decline in the previous month. The rise in machinery orders is attributed to Japanese firms experiencing increased profits and raising wages, leading to higher investment.
Despite the positive outlook for capital spending, risks remain due to global economic uncertainty, such as the Middle East crisis potentially impacting oil prices. However, solid wage hikes by major companies are expected to boost domestic consumption and business confidence in capital investment plans.
The core orders data comes at a time of concerns over the weakening yen, which could lead to higher import prices and inflation. The Bank of Japan recently shifted away from its super-easy monetary policy after major firms offered significant pay raises. While the BOJ remains cautious about further policy tightening, the positive trend in capital spending could influence future decisions on monetary policy normalization.
Better wage conditions overseas, young Japanese workers find
April 14, 2024
Tomoki Yoshihara, a 25-year-old Japanese worker, has found better opportunities in Australia, where he earns three times more working at a meat-processing plant than he did in Japan's military. He is among a growing number of young Japanese choosing to work abroad on working holiday visas, attracted by higher wages and better living conditions. This trend is driven by a sense of dissatisfaction with Japan's economic outlook and stagnant wages. Despite recent wage increases and the end of negative interest rates in Japan, real wages still lag behind other advanced economies like Australia and the US. The gap in wages has led many Japanese to seek better opportunities overseas.
Australia is a particularly popular destination for Japanese workers, offering a generous visa system and attractive work opportunities. The country's perceived safety, time zone similarity, and relaxed rules for working holiday visa holders have made it a desirable location for Japanese workers. The trend of Japanese workers seeking opportunities abroad is expected to continue, with Canada, the UK, and New Zealand also issuing working holiday visas to Japanese nationals.
This outflow of Japanese workers could exacerbate labor shortages in Japan, particularly in small- and medium-sized businesses. Companies in Japan are already facing challenges in finding skilled workers, and the trend of Japanese workers seeking opportunities abroad could worsen the situation. However, the future movement of Japanese workers will depend on the economic conditions and prospects in Japan.
Google to invest in new undersea cables
April 11, 2024
Google has announced a $1 billion investment to enhance digital connectivity between the U.S. and Japan with the construction of two new subsea cables. This move comes as part of efforts to strengthen ties between the two countries, with President Joe Biden emphasizing telecommunications as a national security issue. The new subsea cables, Proa and Taihei, will not only connect the U.S. and Japan but also various Pacific island countries and territories.
The United States and Japan, in cooperation with other partners, aim to build more resilient networks in the Pacific region to counter China’s growing influence in the area. Last year, the U.S. committed to funding two undersea cables connecting Guam with hubs in Fiji and French Polynesia. Google, in collaboration with Japanese companies like KDDI and Arteria Networks, will work on building these subsea cables and improving digital connectivity in the region.
Subsea cables are vital for internet connectivity, handling the majority of global data traffic. Google’s investment highlights the importance of secure and reliable digital infrastructure in today's interconnected world.
Game arcades decline by 8,000 over past decade
April 9, 2024
The number of arcades in Japan has declined significantly over the past decade, with nearly 8,000 arcades closing down. The financial analyst firm Teikoku Databank reported that there were 18 cases of 'game centers' going bankrupt in the last financial year, marking the highest number in the past five years.
The decline in arcades has been attributed to factors such as operating costs increases, including consumption tax hikes, coin exchange fees, and electricity rate hikes. Crane games have become popular, making it challenging for arcades to attract customers with traditional arcade machines. This focus on crane games has also made businesses vulnerable to increases in prize costs. The profitability of game center operating companies has been low, with an average operating profit of only 6 yen per 100 yen of sales.
The decline in arcades predates the pandemic, with a significant decrease in the number of arcades across Japan reported in recent years. Sega ended its 50-year association with Japan's game centers in 2022, with its iconic arcade branding disappearing from Tokyo.
Japan’s games industry Galapagos Syndrome effect relaxing
April 4, 2024
The Japanese games industry, particularly in the realm of mobile gaming, has long been seen as a unique and isolated market. However, recent shifts in the industry are challenging this perception. While mobile gaming has been a dominant force in Japan, the market is evolving, with companies like CyGames branching out into console gaming. This shift is also evident at events like the Tokyo Game Show, where mobile games are no longer the sole focus and PC and console gaming are gaining prominence.
The rise of PC gaming in Japan, fueled in part by the success of the Nintendo Switch, is changing the landscape of the industry. This shift is also leading to a broader embrace of non-domestic titles and international collaborations. For example, Microsoft has been focusing more on the Japanese market in recent years, recognizing the growth potential of the region.
The popularity of the Nintendo Switch, with its hybrid nature, is also influencing the gaming preferences of consumers in Japan. The ability to play games anywhere and the perceived safety and quality of console gaming compared to mobile gaming are driving the preference for consoles among Japanese gamers.
Furthermore, the growth of eSports and the engagement of younger audiences with competitive gaming are reshaping the industry. Tokyo Game Show has become a hub for eSports events, showcasing the growing appeal of competitive gaming in Japan. This trend is also reflected in the rise of gaming cafes and the incorporation of gaming experiences into real-world settings.
Overall, the Japanese gaming market is in a state of transition. While it has long been known for its insular nature, the industry is becoming more international and diverse, embracing new platforms, developers, and experiences from around the world. Events like Tokyo Game Show serve as a barometer for these changes, showing a market that is evolving and adapting to the desires of modern players.
Japan to finance chipmaker Rapidus
April 2, 2024
Japan has approved a substantial amount of subsidies, totaling ¥590 billion, for chip venture Rapidus Corp. This funding will assist Rapidus in purchasing chipmaking equipment and developing advanced back-end chipmaking processes. The goal is to enhance Japan's semiconductor manufacturing capabilities and compete with industry leaders like Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co.
The additional funding for Rapidus comes on top of ¥330 billion the startup has already received in a bid to mass produce chips in Hokkaido. This move aligns with Japan's broader strategy to regain its chipmaking prowess, with Prime Minister Fumio Kishida aiming to provide ¥10 trillion in financial support to chipmakers, both public and private.
Growing global tensions have led many countries, including the US and Japan, to bolster their domestic semiconductor capabilities. This is seen as crucial for various industries, including automotive, power, defense, and consumer electronics. Rapidus is collaborating with Japanese researchers to close the gap with TSMC in cutting-edge fabrication technology.
The allocated subsidies will be used to set up equipment for the pilot line at Rapidus's Chitose plant, engage IBM researchers, develop advanced packaging technologies, and enhance production control systems. These funds are instrumental in helping Rapidus achieve its goal of mass producing semiconductors using 2-nanometer processes by 2027 and streamlining production cycles to outpace competitors.
Economy Minister Ken Saito emphasized the significance of semiconductors for Japan's industries and economic future. He highlighted the role of chips in digitalization, decarbonization, and economic security. The subsidies aim to address Japan's previous stagnation and loss of competitiveness by acknowledging the foundational importance of semiconductors.
Japan to increase disabled worker quota
April 1, 2024
The Japanese government has increased the required ratio of employees with disabilities in the private sector to 2.5 percent starting April 1, with plans to raise it to 2.7 percent by July 2026.
The Labor and Welfare Ministry reports a growing number of people with disabilities employed in private firms, estimating over 1.1 million by June 2023. However, only half of companies with over 43.5 employees reached the previous 2.3 percent quota.
The new rule applies to businesses with 40 employees or more, with subsidies offered to those hiring disabled individuals. Companies failing to meet the quota may have their names publicly disclosed by the ministry.
Standard Chartered predicts imminent yen intervention
March 28, 2024
Japan is on the brink of intervening in the yen as it continues to weaken, with the currency hitting multi-decade lows against the U.S. dollar.
Steven Englander from Standard Chartered Bank believes that Japanese authorities are very close to stepping in, as there is no demand for a weaker yen. Market speculation has grown over potential intervention, with officials signaling a readiness to act against disorderly FX moves. The aim of any intervention would be to buy time until the Federal Reserve cuts interest rates or the Bank of Japan increases rates.
Englander pointed out that previous yen interventions have been successful, despite investor skepticism. The Bank of Japan recently made a historic move by ending its negative interest rate regime, but this did not prevent the yen from weakening.
In contrast, the Federal Reserve has indicated plans for multiple rate cuts in the near future. Overall, Japan's potential intervention in the yen is seen as a temporary measure until more substantial changes in interest rates occur.
Finance Ministry ready to respond to yen movements
March 25, 2024
Japan's vice finance minister for international affairs, Masato Kanda, cautioned against speculators selling off the yen, stating that its current weakness against the dollar did not reflect underlying fundamentals. The yen was hovering near a 32-year low of around 152 to the dollar, with significant fluctuations of 4% in just the past two weeks. Kanda described these moves as speculative and expressed concern about the situation.
Despite the weakening yen potentially leading to higher costs of living due to more expensive imports, the Japanese government has not taken aggressive measures to intervene in the currency market. Analysts believe that officials may not view the weak yen as a major crisis, especially compared to previous interventions when the yen broke past 145 to the dollar in 2022.
Kanda emphasized that the weak yen has both positive and negative aspects for different economic players. He did not specify a target exchange rate at which intervention might occur, but he did stress that he is closely monitoring the situation and is prepared to respond appropriately.
The yen was trading around 151.27 to the dollar on Monday morning, with experts suggesting that despite Kanda's warnings, intervention may not occur even if the dollar reaches 155 yen.
Union calls out record wage hikes
March 16, 2024
Japan's largest companies have agreed to raise wages by 5.28% for 2024, marking the highest pay hikes in 33 years. This move comes as the Bank of Japan considers ending its negative interest rate policy. The increase, which exceeded expectations, is expected to boost household spending and support the country's economic growth. Trade union group Rengo had been pushing for raises exceeding 3% in base pay, with analysts expecting a rise of over 4%.
Rengo represents around 7 million workers, many of whom work at major firms. The wage hikes are anticipated to have a positive impact on part-time workers as well, with a projected 6% increase in pay for this fiscal year. The government hopes that these raises will benefit smaller and medium-sized companies, which make up the majority of enterprises in Japan. However, many of these businesses may struggle to pass on higher costs to customers.
The ongoing labor negotiations, including a significant pay increase from Toyota Motor, suggest a positive economic outlook for Japan. Amidst chronic labor shortages and Prime Minister Fumio Kishida's efforts to combat deflation, these wage hikes are seen as crucial for economic revival. The annual pay negotiations, known as "shunto" or "spring labor offensive," reflect the collaborative relationship between labor and management in Japan.
Overall, the wage increases are expected to support economic growth, alleviate income inequality, and contribute to a more stable economy. The move towards higher wages aligns with Japan's efforts to address longstanding economic challenges and boost consumer spending.
Recession avoided – technically
March 11, 2024
Japan's economy narrowly avoided a technical recession as official GDP figures for the last quarter of 2023 were revised to show a 0.4% growth compared to the previous year. Initial data had indicated two consecutive quarters of economic contraction, which would have met the definition of a recession. Expectations were for a higher revision, with some economists predicting a 1% increase in GDP.
Despite hopes that Japan had escaped a recession, private consumption fell by 0.3%, and uncertainties remain due to factors like China's economic slowdown and production halts at Daihatsu. The revision comes amidst speculation that the Bank of Japan may soon raise interest rates, as the current -0.1% rate has been in place since 2016.
Negative rates were meant to stimulate spending and investment by lowering the yen's value, but the Nikkei 225 index dipped 2.5% following the revised GDP figures.
Doubling of skilled foreign workers considered
March 6, 2024
The government of Japan is considering raising the cap on the number of foreign workers with specified skills accepted under a special residency status to more than 800,000 over a five-year period starting in fiscal 2024. This is in response to severe labor shortages in various sectors. The two types of residency statuses for skilled workers allow them to live and work in Japan for extended periods, with Type 1 covering 12 areas like nursing care and agriculture, and Type 2 for highly skilled workers.
To address labor shortages in sectors like automobile transport and forestry, the government plans to expand the scope of Type 1 status. The current limits on accepting foreign workers aim to prevent employment issues among Japanese citizens. The shortage of labor is expected to surpass 800,000 workers, even with improvements in wages and productivity for Japanese workers.
The government also plans to grant vocational school graduates in Japan equivalent residency status to university graduates, allowing them to work in Japan under more flexible visa categories. These changes aim to increase the number of foreign vocational school graduates finding employment in Japan by around 3,000.
Surname changes for married Japanese may soon be coming
February 20, 2024
Akiko Saikawa, a Tokyo office worker, experienced administrative difficulties after getting married due to the requirement for married women to change their surname in Japan. The outdated law forbids married couples from using separate surnames, but in 95% of cases, it is the woman who changes her name, reinforcing gender inequality.
Campaigners argue that this outdated law creates administrative burdens and hinders career development, with female executives facing challenges during overseas business trips due to mismatched IDs. Business leaders, including Shiseido CEO Masahiko Uotani, and the Japan Business Federation, have joined the call for change, emphasizing the barrier the current system poses to women's advancement in the workplace.
Despite allowing maiden names alongside married names on some official documents, Japan remains the only country mandating spouses to share a surname. Prime Minister Fumio Kishida has called for public discussion to build support for the change, while Saikawa advocates for separate surnames to avoid career disruptions and maintain a connection to family history and individual identity.
University of Tokyo expanding foreign student volume
February 19, 2024
The University of Tokyo is planning to introduce a new five-year combined Bachelor's and Master's degree program starting in fall 2027. Half of the 100-student capacity will be reserved for foreign students. The interdisciplinary college of design program will focus on addressing global issues like climate change and will allow students to take courses across various fields of study. The program will also offer classes to students from other faculties within the university.
Students will be required to gain one year of experience outside the university through internships or studying abroad. The program will be taught in English and will have a different admissions process to ensure diversity in student backgrounds. The university aims to increase the ratio of foreign students at both undergraduate and graduate levels by 2049.
Foreign researchers will be invited to teach courses in the program using funds generated from the university's investments. The details of the entrance examinations and graduation requirements will be finalized by March 2025.
Japan tech company makes data transferral easier
February 18, 2024
Rakuten Symphony has launched its cloud storage service, Rakuten Drive, in Japan, offering 10GB of free storage and unlimited file transfer. The service is designed for both individuals and businesses, providing secure file storage and sharing on the cloud. Users can view and edit documents and spreadsheets in Microsoft 365 in real-time. Rakuten Drive, previously known as Sendy, has seen significant growth since being acquired by Rakuten Symphony in 2021.
The CEO of Rakuten Symphony Korea, Ryan Son, emphasizes the importance of safely managing personal and business files with Rakuten Drive. The consumer version is integrated with Rakuten ID, allowing the 100 million Rakuten members in Japan to access the service with their existing login details. Rakuten Symphony ensures strict data storage and information security policies for Rakuten Drive.
In the future, Rakuten Symphony plans to add more features for the business-to-business market, supporting freelancers, small businesses, and large enterprises. They are also considering integrating Rakuten Points, the company's loyalty program, into Rakuten Drive.
Groundbreaking lawsuit by foreign-born residents alleging racial profiling
January 31, 2024
Three foreign-born residents of Japan have filed a lawsuit against the national and local governments over alleged illegal questioning by police based on racial profiling. This lawsuit is a first in Japan and comes amid a sharp rise in foreign workers coming to the country to help stem labor shortages as the population ages and declines.
The lawsuit also comes amid a renewed debate over what it means to be and look Japanese, after a Ukrainian-born, naturalized Japanese citizen was crowned Miss Japan last week.
The plaintiffs demand that the national, Tokyo Metropolitan, and Aichi Prefecture governments recognize that it is illegal for police officers to stop and question people solely on the basis of their race, nationality, or ethnicity. They claim to have suffered distress from repeated police questioning based on their appearance and ethnicity, which they say is a violation of the constitution.
The lawsuit seeks 3 million yen (about $20,250) in damages for each plaintiff. The Tokyo Metropolitan Government, Aichi Prefectural Government, and National Police Agency have so far declined to comment.
Coercive contraception treatments undergone by Vietnamese trainees
January 25, 2024
A Kyodo News survey uncovered that female Vietnamese technical trainees were encouraged to participate in contraceptive programs, raising worries about their reproductive freedoms. The Japanese government is thinking about rejecting the ongoing specialized temporary job program for foreign trainees, which started in 1993 as a means to provide training to non-industrial nations. Vietnam, according to the Organization for Technical Intern Training, sends the largest number of such trainees.
The study uncovered that organizers for sending trainees to Japan had advised nine women to go through preventative treatment, five of whom receiving internal birth control rings on the understanding that they would be sent back to Vietnam should they get pregnant. One woman explained her belief that the contraceptive process was a requirement to take part in the program.
Coercion and discrimination against workers is not allowed under Japanese law, and foreign workers are entitled to childbirth and childcare benefits just as Japanese nationals are.
A Japan Immigration Services Agency official expressed concern that contraceptive treatment be given without the individual's assent, pointing out that people should be treated fairly, regardless of their nationality.