Hidden beneath cutting-edge industries, technological advancements and economic resilience, Japan’s working poor is rising. Due to a lack of visibility and cultural stigma, many workers in Japan are left struggling without any safety net or means of improving their circumstances.

The Reality of the Working Poor

The term “working poor” originated in the United States (U.S.) and refers to individuals who remain below the poverty line despite being employed. More than 30% of employed individuals in Japan fall into this category. Those most affected include younger workers earning lower wages, graduates unable to secure stable employment and middle-to-older generations with limited access to skills development.

A significant factor contributing to the growing population of Japan’s working poor is the decline of Shūshin koyō or lifetime employment. This traditionally guarantees job stability from graduation to retirement. In contrast, there has been an increasing shift toward temporary and contract-based employment, leaving workers vulnerable to financial instability. Budget cuts, particularly within Japan’s civil service, have also led to an increase in irregular jobs that offer lower wages and uncertain futures.

Japan’s economic stagnation has exacerbated financial insecurity, reducing the government’s role in providing social welfare and emphasizing individual responsibility more. As irregular work contracts become more common, private pensions and health care benefits decline, leaving workers unprotected. Critics say “years of deregulation of the labor market and competition with low-wage China have brought a proliferation of such low-paying jobs in Japan. These jobs are “largely uncovered by an outdated social safety net, created decades ago as a last resort in an era when most men could expect lifetime jobs,” compounding the circumstances of Japan’s working poor.

Cultural Barriers

With 80% of those living in poverty included in Japan’s working poor, the country’s deeply ingrained societal norms further complicate matters. The stigma surrounding financial struggle discourages individuals from seeking government aid, even when entitled to assistance. Many people avoid discussing poverty due to concerns about social judgment or personal shame.

The concept of “invisible homelessness” is on the rise. Financially unstable workers, though employed, often resort to living in internet cafés rather than renting permanent housing. The bureaucratic complexity of accessing public assistance discourages individuals from getting the needed help.

Efforts to Combat the Issue

Government intervention has played a role in alleviating poverty through tax reforms and welfare policies. However, historically, Japan has emphasized family and community-based support rather than direct state intervention. Many relief laws, such as the 1874 Relief Regulations and the 1929 Relief and Protection Law, limited aid to only the most vulnerable individuals while excluding the working poor.

However, Japan’s welfare programs have expanded since the Daily Life Security Law (1946, revised 1950). Policymakers have now reviewed plans to increase Japan’s spousal tax deduction threshold to help relieve household financial pressures further. Additionally, in October 2021, Japan’s minimum wage increased from approximately $6.3 to $6.4. For context, Japan’s average loaf of bread costs roughly $1.58. Many argue, therefore, that this minimum wage must be increased further or that a universal “basic income” should be introduced. This would mean that the Japanese government would provide every individual with a standard fund needed to live.

However, this is contentious as there is, as yet, no other country in the world with such a system. There are concerns over where the funds could come from and objections because it could reduce the country’s work ethic. Nongovernmental organizations (NGOs) also play a vital role in supporting struggling workers. Groups such as the Moyai Support Center in Tokyo and HomeDoor in Osaka provide housing assistance, job training and community advocacy efforts. However, as these organizations are only local to certain cities and with the perpetuation of stigma, there are still members of Japan’s working poor who need help.

Key Takeaways

Japan’s working poor continue to face economic uncertainty exacerbated by stagnating wages, irregular employment contracts and deeply ingrained cultural stigma. While governmental policies and NGO efforts aim to combat the issue, lasting change requires systemic reform and societal shifts.

Expanding employment assistance can help workers transition to stable jobs with better pay and benefits and strengthening vocational training will also improve their chances of securing steady work. Critics maintain that increased state involvement is paramount for protecting wages and benefits, regardless of employment type.

Greater awareness and open conversations about financial struggles are critical for breaking the stigmas that reinforce the cycles of poverty. By fostering a culture of support and advocacy, Japan could create a future where no worker is left to struggle in financial hardship.

– Amber Lennox

Amber is based in Suffolk, UK and focuses on Business and Politics for The Borgen Project.

Photo: Pexels