Tag Archive for: Poverty in Japan

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Net Café Refugees: Japan’s Hidden Urban Poverty

Net Café RefugeesIn Japan, a subtle form of homelessness has surfaced, particularly in the 24-hour internet cafés, which are traditionally viewed as venues for late-night gaming or manga reading. Instead of conventional street living, many low-income workers utilize these cubicle-sized booths as makeshift bedrooms. According to a poll by the Tokyo metropolitan government, it is estimated that around 4,000 individuals spend their workday nights sleeping in these cafés.

The growth in internet café homelessness exposes a deeper and frequently disregarded reality: poverty occurs even in high-income countries and is getting harder to escape, even though the world often considers Japan to be one of the most prosperous nations on Earth.

A High-Tech Refuge for the Working Poor

Many internet cafés in Tokyo, Osaka, and other large cities provide overnight packages that include free drinks, showers, reclining seats and private cubicles. These facilities offer a unique blend of affordability, anonymity and safety for those with inconsistent jobs or wages.

Often referred to as “net café refugees,” people who live in cafés are not always jobless. Many work as delivery drivers, cleaners, warehouse employees, convenience store employees, or part-time office assistants. However, saving for traditional housing is practically impossible due to low wages and irregular hours.

How Poverty Drives Internet Cafe Homelessness

Rising poverty in Japan has led to increased homelessness among internet café users, driven by unstable employment and low wages. Approximately 40% of workers engage in nonregular jobs, which offer diminished pay, benefits, and job security. A missed paycheck can swiftly result in homelessness, prompting individuals to use internet cafés as temporary, low-cost shelters.

High housing costs in Japan, particularly in cities like Tokyo, challenge low-income workers due to the rental system’s requirement for large upfront payments. This situation forces many, estimated at up to 4,000 according to a 2018 survey, to use internet cafés as their primary homes.

Internet café homelessness impacts a wide range of people, including young adults with precarious part-time jobs, middle-aged people laid off from long-term positions, internal migrants from rural areas looking for work in the cities, women fleeing abusive households or financial hardship and those who are cut off from their families and lack a support system.

Many workers do not fit the homeless stereotype. During the day, they blend in with metropolitan masses, keep their jobs and dress nicely. They discreetly withdraw to cramped cells rather than apartments at night. Because they are invisible, it is more difficult to track the issue and simpler for society to ignore it.

The Daily Reality of Cafe Living

Internet cafés, while providing short-term housing, could negatively affect residents’ physical, economic and emotional well-being. Inadequate bedding leads to physical strain and chronic fatigue, while limited access to hygiene facilities impacts self-esteem and health. Irregular sleep patterns further exacerbate mental health issues like depression and anxiety.

Many net café refugees face ongoing stress from unstable living conditions, working without a safe place to sleep, which leads to fatigue and reduced job performance. The costs of café stays, irregular sleep, social isolation, and the lack of a stable address hinder access to jobs, banking and government aid, reinforcing a cycle of poverty even in wealthy nations.

Acknowledging the serious issue of homelessness, local governments like Tokyo’s administration are implementing emergency housing, free counseling, job placement programs and short-term lodging in government hostels. While these initiatives provide important support, they often offer only temporary relief rather than addressing the underlying causes of internet café homelessness, such as high housing costs and low wages.

NGOs Filling the Gaps

Numerous nonprofit organizations in Japan, such as Homedoor, are actively helping individuals facing hidden homelessness by offering free or low-cost temporary accommodation, food, clothing and hygiene products. They assist in navigating government services and advocate for changes to housing and employment laws, playing a crucial role for those hesitant to approach government offices.

Policy experts recommend several changes to end the cycle of poverty and hidden homelessness. Increasing the number of inexpensive public apartments and modular housing units could expand affordable housing initiatives and offer longer-term, safer housing options.

A Poverty Crisis Hidden in Plain Sight

The growing number of net café refugees in Japan highlights the unexpected forms of modern poverty, despite the country’s wealth. As revealed in a 2025 exposition on hidden homelessness, many have to live in internet cafés, capsule hotels or unstable flats while contending with systemic barriers that perpetuate their low-income, precarious situations.

The international community may better understand the different forms of poverty and support solutions that guarantee everyone, regardless of location, has access to secure, stable housing by bringing attention to this mostly unseen problem.

– Katelyn Leano

Katelyn is based in Plainfield, IL, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

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Elderly Poverty in Japan and the Rise of Lonely Deaths

Elderly Poverty in JapanMore than 70,000 lonely deaths occurred all across Japan in 2024. Most were above 65, in poverty and lacking resources for health care. There is evidence of a silent crisis: social isolation, an increase in elderly poverty in Japan and the rise of reports of kodokushi or “lonely death.”

According to a 2024 study by the National Police Agency, the elderly population in Japan makes up 76% of solitary deaths. Experts believe this is a public health emergency with contributions from weak social safety nets and shifts in family structures.

Scope of the Crisis

Living alone is now common for older adults in Japan. The National Institute of Population and Social Security Research reports that 19.4% of seniors age 65 and older currently live alone. This shift reflects Japan’s low birth rate, shrinking family units and increasing urban migration.

According to the World Bank, 30% of Japanese adults are above 65. Experts expect that number to rise, with elderly single households estimated to increase by 47% by 2050. This creates a society where aging in isolation becomes increasingly unavoidable due to limited funds and inadequate elder care infrastructure.

Causes of Lonely Death Among the Elderly

Japan is one of the fastest-aging societies in the world, with 29.1% of its population now aged 65 or older. Meanwhile, multigenerational households are disappearing. Multigenerational households dominated half of Japan’s families in 1980 but shrank to 12.2% by 2015.

Cultural norms previously dictated that children cared for aging parents. But economic pressures, migration and social stigma around dependence have shattered those expectations, creating an increase in elderly poverty in Japan. According to Matthew Penney, almost 20% of Japan’s elderly struggle with relative income poverty.

Loneliness and Isolation

The economic consequences are severe. Elder poverty in Japan is high, almost double the average for the Organization for Economic Co-operation and Development (OECD). According to the Asia-Pacific Journal: Japan Focus, most single older women in Japan live below the poverty line. They are also likely to outlive their spouses and suffer in silence rather than ask for help.

These women are extremely vulnerable. Many of them have no pension or savings because they spent most of their lives as homemakers. Social isolation further compounds the problem. A white paper from Japan’s Cabinet Office confirms the rise in levels of loneliness among seniors, proving that isolation increases the risk of both depression and death.

Promising Solutions

To address the crisis of social isolation, the Japanese government funds new programs such as dementia cafés. These cafés are part of The New Orange Plan, designed to foster connection and reduce loneliness. There is also considerable development in community centers to intervene early on.

Local organizations, such as the Zero Isolation Project, are advocating for more robust volunteer programs and increased awareness campaigns. Offering services that include volunteer visits and support services, Japan is banding together to help the elderly population feel less alone.

Final Remarks

Addressing Japan’s elderly crisis provides a global model for aging care and preventative measures. When governments take action to support the elderly poor, they ensure people have the resources they need to feel safe and supported. 

– Nicole Fernandez

Nicole is based in Reno, NV, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Major Facts About Poverty in Okinawa

Poverty in OkinawaOkinawa is one of the largest islands within the Ryukyu island chain and the smallest prefecture in Japan. Formally known as the Ryukyu Kingdom, Okinawa is known internationally as an island travel destination and a Blue Zone area. A hidden struggle among Okinawan residents lies within the region’s rich culture and beautiful beaches. While Japan is considered a nation with high national well-being, poverty in Okinawa is 35%, twice the national average.

Single-Parent Household Ratios Are High

Contributing to poverty in Okinawa are single-parent or single-mother households. According to Professor Yanfei Zhou of Japan Women’s University from the documentary “The Ones Left Behind: The Plight of Single Mothers in Japan,” despite single-parent households having a high employment percentage of 85%, 48.3% of the households are in poverty.

In Okinawa, single-mother households are the majority, resulting in a 30% child poverty rate that is almost double the national average. Many of these single-mother households have to work two jobs, with their second being a hostess at nightclubs.

US Military Facilities Dominate Okinawa

Many of Okinawa’s poverty-related issues stem from Japan’s relationship with the U.S. military. After World War II and the devastating 1945 Battle of Okinawa, Japan allowed the U.S. to establish military facilities on the island, bases that remain in place today.

Due to the 1945 battle devastating Okinawa’s existing infrastructure and major agricultural fields being demolished for military facilities, the prefecture experienced major economic infrastructure development delays.

About half of all U.S. forces in Japan remain in Okinawa today, an island that makes up less than 0.6% of the country’s territory. The weak infrastructure on the island continues to contribute to the low employment rates and poverty in Okinawa.

Unemployment Rates Are High

According to e-Stat, Okinawa’s unemployment rate was 8.1% in 2023, the highest percentage among Japan’s prefectures. Many factors contribute to this, including limited infrastructure due to the U.S. military presence, dependence on a tourism industry with low wages and unstable work and low university enrollment among young people. The island’s geographic isolation from mainland Japan also worsens unemployment and poverty in Okinawa.

Okinawa Lacks Support From the Japanese Government

Although the Japanese government provides Okinawa with more than $2 billion in annual financial support, the relationship between Okinawan residents and the state remains complicated. Many oppose current plans to relocate the U.S. Marine Corps Air Station from Futenma to the coast of Henoko, reflecting longstanding resentment over the U.S. military presence.

Japan’s colonization of the former Ryukyu Kingdom and deep cultural differences between Okinawa and the mainland have also fueled tension. As a result, Okinawa is often viewed as neglected compared to other Japanese prefectures.

Organizations Providing Aid

While poverty in Okinawa stems from many factors, nonprofit organizations and local leaders continue to fight for change. HelpOki, a volunteer-based nonprofit founded in 2011, works to combat poverty by providing vital resources and support to those in need. To address food insecurity, the group established Okinawa’s first food bank and continues to supply essentials to homeless shelters, foster homes and other community organizations.

Organizations outside Okinawa are also working to fight poverty in the prefecture. Second Harvest Japan, the country’s first incorporated food bank, aims to build a nationwide food safety net. In 2020, in collaboration with Barclays, it launched the Usagamisore Project. The initiative provided food to 30,000 households in Okinawa during the COVID-19 pandemic and continues to serve the community while expanding its reach to the greater Tokyo area.

Local leaders have also made slow but steady plans to make Okinawa more self-reliant. They aim to reduce poverty and unemployment rates while still addressing residents’ concerns with U.S. forces and their presence in Okinawa.

– Skylar Paxton

Skylar is based in Lake Forest, CA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Wikimedia Commons

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The Hidden Struggles of Japan’s Working Poor

Japan's Working PoorHidden 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

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3 Solutions to Elderly Poverty in Japan

Elderly Poverty in JapanJapan has some of the world’s highest rates of elderly poverty. While the average poverty rate for seniors among the Organization for Economic Cooperation and Development (OECD) countries is 14%, Japan’s rate is notably higher at 20%. There are many potential causes, the most obvious being the country’s rising population of older adults. In 2020, 29% of Japan’s population was older than 65.

Many seniors rely on national pensions for necessities like food and medical expenses. However, a 2019 survey found that approximately $10,000 is needed annually to cover these daily necessities. In contrast, individuals above 65 receive an annual basic pension of only about $6,000, falling significantly short of the required amount. The pension system is also heavily patriarchal, as single, divorced and widowed women are at a heavy disadvantage. For example, around 44.1% of elderly, single Japanese women live in poverty and that rate is much lower for men (30%).

One reason for this could be from the post-war era when women were socially expected to raise children. At the same time, their husbands would work and earn money for the family. The pension system was therefore built to support men and families, not single women. To address this issue of elderly poverty, Japan has offered solutions that include the continuation of employment, improving health care and city accessibility. 

Encouraging Lifelong Work

By encouraging lifelong work, older people can continue to earn money and support themselves. Almost 40% of Japanese companies keep elderly employees and these companies have started programs that aim to keep elderly employees with specialized skills. And company jobs aren’t the only source of work.

More than “70% of the temporary or part-time workers at convenience stores and supermarkets, security guards, custodial workers, care providers, workers at call centers and so on” are above 65. Taxi firms are also increasingly hiring elderly drivers. In addition to these job markets, each municipality in Japan has a “Silver Work” center that helps older adults find jobs.

Improving Health Care

Improving health care can help older individuals stay healthy and remain in the workforce, reducing their reliance on pensions. Better health also decreases the costs associated with medical care and medication, thereby mitigating elderly poverty. One foundation, in particular, has made it its mission to achieve this goal.

The Nippon Foundation and MetLife Foundation initiated the “Better Life Better Place” for the Elderly and Children Program. The program aims to develop 12 care facilities for older people and children by the end of the year. These care facilities will operate like hospice care homes for older people, with volunteers from MetLife Japan employees helping run the homes.

Making Cities More Elderly-Friendly

Creating more elderly-friendly cities can support active lifestyles among seniors, leading to improved health, reduced health care costs and decreased elderly poverty, ultimately fostering happier lives. Some Japanese cities have begun implementing such changes. For instance, Akita has launched initiatives to encourage social engagement among older adults, including a one-coin bus service that provides affordable transportation for seniors.

Conclusion

These three solutions aim to ensure that the elderly remain healthy, enabling them to earn income and lead fulfilling lives. Since health care costs are a significant driver of elderly poverty, improving health and reducing these costs can greatly alleviate financial burdens. By fostering better health, seniors’ overall cost of living could decrease significantly.

– Hannah Chang

Hannah is based in Philadelphia, PA, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Wikimedia Commons

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Single-Mother Families and Child Poverty in Japan

Child Poverty in JapanDespite being one of the wealthiest developed countries worldwide, Japan grapples with a significant child poverty issue, ranking among the highest in the Organisation for Economic Co-operation and Development (OECD) countries. Alarming statistics reveal that one in seven Japanese children lives in poverty.

Causes of Child Poverty in Japan

A significant factor contributing to child poverty is the high percentage of children living in single-parent households. Approximately 50% of single-parent families, most often mother-children households, fall below the poverty line. The summary report shows that the number of mother-children households is roughly 565,000 in 2022, while the number of father-children households is only 75,000.

Furthermore, the societal structure in Japan predominantly favors full-time male employees, leading to a gender wage gap where women, even those working full-time and overtime, often receive lower wages and fewer benefits. The average income per mother-children household is merely 3.73 million yen ($23,529) a year, compared to 6.06 million yen ($38.199) in “single-parent families with a father.” Nearly two million mothers with children in households have no jobs.

“I feel deprived of my dignity because I’m a single mother, I’m on public welfare, I don’t have enough money for daily food and school and I don’t have a job,” said Mika, a 45-year-old single mother who raises her two children, aged 3 and 7, on her own. “My children would like to join clubs and travel, but I can’t afford it.”

Additionally, 22.5% of mother-child households have no savings, the highest percentage among all types of households. Meanwhile, the lowest percentage of mother-child households have savings. In the self-assessed survey of living conditions, around 39.4% of mother-child households claimed a “very difficult” condition, the highest among all types of households. Only 23.4% of mother-child households think they live in a “normal” condition.

The Japanese Social Care System

The Japanese social care system involves local governments offering protective services to children who are either without parents or whose parents are unable to care for them. The system involves fostering psychological care and local community support goals. Other supportive systems such as psychological treatment facilities for children, facilities to support the development of children’s self-sustaining capacity and maternal and child living support facilities also provide home assistance and daycare to assist children and their parents.

Additionally, a children’s home provides a safe living environment for children without parents or those whose parents are unable to care for them due to abuse, serious health issues, or financial difficulties. According to data from the Ministry of Health, Labor and Welfare, the number of children’s homes in Japan is approximately 600 and the number of children living in such homes is 27,300.

NGOs Providing Solutions

Apart from government support, many organizations are fighting for child poverty in Japan:

  • Lights On Children: A nonprofit organization that assists and supports children’s social needs.
  • Kids Door: A nonprofit organization that provides education, comfortable homes and career workshops.
  • YouMeWe: A Tokyo-based nonprofit organization that nurtures and supports local students from institutionalized homes, helping them achieve full independence by the age of 18 through initiatives like financial literacy programs.

Final Remark on Child Poverty in Japan

These supportive programs and institutes have effectively alleviated children’s poverty. A report from the Ministry of Health, Labor and Welfare indicates a decrease in children’s poverty rate from 2018 (14%) to 2021 (11.5%). The relative frequency distribution of the number of children in households with disposable income shows a drop in the range of less than 400,000 yen ($2,520) and between 400,000 and 1,400,000 yen ($2,520 and $8,820). The frequency of single-parent and children in households also declines in the range between 1,000,000 and 1,400,000 yen ($6,300 and $8,820).

Nevertheless, the Japanese government repeatedly made promises to provide financial support to children in poverty and mother-children households. However, the action was very slow. Akihiko Kato, a professor at Meiji University, has criticized the Japanese government for its sluggish response in delivering financial support to families with children. “It’s one thing we can do more of in society: try to recognize people’s cries for help,” said McAvoy, the filmmaker of Japanese single mother film “The Ones Left Behind.”

– Cindy Hong

Cindy is based in Milpitas, CA, USA and focuses on Good News for The Borgen Project.

Photo: Flickr

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Challenges and Progress of the Ainu People in Japan

Challenges and Progress of the Ainu People in JapanJapan, renowned for its natural beauty and rich cultural traditions, is also home to the Ainu, an indigenous people native to the country’s northern regions. Traditionally, the Ainu inhabited northern Honshu, Japan’s main island, as well as Hokkaido, Sakhalin and the Kuril Islands, the latter two of which are still in a longstanding territorial dispute with the Russian Federation. Currently, most Ainu reside in Hokkaido.

Recognition and Rights of the Ainu

Despite their unique language and culture, the Ainu did not receive formal recognition from the Japanese government until 2008, when the Japanese Diet passed legislation acknowledging them as indigenous people. However, it took another 11 years until 2019 for the Ainu to gain recognition as the native people of Hokkaido.

Historically, past actions of the Empire of Japan during the Meiji Period from 1868 until 1912 made life very difficult for the Ainu and they are still recovering from the consequences at the moment. During this era, the government forbade the Ainu language in schools and banned its traditional hunting and fishing practices. These restrictions quickly marginalized the Ainu socially and economically. In an attempt at rectification in 1899, the government allocated land to the Ainu for farming, but the best farmlands in the region had already been stripped from the Ainu and given to Japanese settlers decades prior.

Economic and Social Advancements

Since the end of World War II, the lives of the Ainu have gradually improved. Organizations such as the Ainu Association of Hokkaido, formed by the Ainu in the 1940s, have strived to overcome the marginalized status of the Ainu. This includes environmental improvement projects and joint workshops in areas inhabited by the Ainu. 

In 2006, a study by the Hokkaido government suggested that the economic living conditions of the Ainu had improved. A decrease in the number of tax-exempt Ainu households in the region suggested that median income had increased amongst the Ainu. The study also revealed that the number of Ainu receiving government assistance had also declined. This meant that the income gap between the Ainu and Japanese peoples had also reduced. 

Educational Achievements and Challenges

In addition to economic improvement, the Ainu have also experienced improvements in access to education in recent years. In 1972, only 41.6% of Ainu attended high school compared to 78.2% amongst Japanese people. This number has significantly increased to 92.6% of Ainu attending high school in 2013. However, that is still behind the number of Japanese in high school at 98.6%. Similarly, the number of Ainu people attending college has risen from 8.8% in 1979 to 25.8% in 2013. While a great improvement, this falls well short of the 42% national average for college attendance.

Looking Ahead

Recent advancements have significantly improved the Ainu people’s economic conditions and access to education in Japan. Although progress is evident, disparities remain, with Ainu high school and college attendance rates still trailing national averages. Continued efforts are essential to close these gaps and ensure the Ainu community achieves full social and economic equality.

– Kaleb Boyer

Kaleb is based in Flint, MI, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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Single Elderly Women in Japan Struggle with Poverty

Single Elderly Women in Japan Struggle with PovertyA recent survey conducted by Tokyo Metropolitan University Professor Aya Abe reveals that 44.1% of single women aged 65 and older in Japan are living in poverty. This rate is notably higher than their male counterparts and is nearly equivalent to the 44.5% poverty rate among working-age single-parent households.

Japan faces growing concerns about its aging population, particularly single elderly women who are at a higher risk of poverty. Current data suggests a stark contrast in poverty risks between genders and marital statuses, with elderly women more likely to struggle financially. Projections indicate that poverty rates for elderly women could increase from 22% to 25% and for divorced or unmarried women, the rate could spike to 50%. In contrast, only about 10% of elderly men are expected to fall into poverty. Widowhood offers limited financial relief, often restricted to bereaved family pensions.

Economic Inequality and Labor Market Challenges

The 2022 Ministry of Health, Labour and Welfare report in Japan reveals significant gender and age disparities in “one-person households.” Men constitute 35.9% of these households, with the largest age group being 70 to 74 years old, accounting for 28.7% of single male households. In contrast, women make up 64.1% of one-person households, with the largest demographic being those aged 85 and over, representing 24.1% of single female households.

Despite a doubling of income over the past two decades, Japanese women still earn significantly less than their male counterparts. As of Feb. 2023, the Statistics Bureau of Japan reported that the average monthly income for women was ¥83,896 ($630), compared to ¥345,645 for men. This disparity is exacerbated by the fact that 70% of female workers hold part-time or nonpermanent positions, which typically offer lower pay and limited opportunities for advancement. Consequently, Japan’s ranking suffered in the World Economic Forum’s 2022 Global Gender Gap report, ranking 116th out of 146 countries, primarily due to wage inequality and a scarcity of women in senior management roles.

Societal Norms and Systemic Disadvantages

“Social norms that assume women are being supported by men have led to a system that doesn’t consider women living alone—and persist even today,” said Abe, “Attention on ‘women’s poverty’ often focuses on young women and single mothers. Policies also revolve around child support and are not essentially supporting women.” This disparity stems from the post-war pension system, which was based on the assumption that women would leave the workforce to raise children while men, employed full-time, would secure generous benefits. Consequently, the system inadequately supports single, divorced or never-married women in their later years.

Policy Recommendations and Future Directions

In Japan, the public pension system covers individuals from age 20 to 59, with basic pension benefits starting at age 65, contingent on a minimum of 10 years of contributions. Full benefits are available after 40 years of contributions. Enhancing the income security function of this system can potentially mitigate the risk of elderly poverty.

A RIETI report recommended three frameworks for improving Japan’s pension system. Firstly, it suggested expanding employee health insurance to cover nonpermanent, part-time workers, thereby ensuring more comprehensive protection and reducing the risk of exclusion from the pension safety net. Secondly, raising the pensionable age could increase benefits for those currently receiving low amounts, more effectively addressing elderly poverty. Finally, implementing partial reforms to the existing system could significantly alleviate poverty without the need for a complete overhaul.

The Japanese government is actively promoting “lifelong work” to alleviate the country’s significant labor shortage and to encourage elderly citizens to contribute more toward their medical and nursing care expenses. To support this initiative, the Fiscal System Council is evaluating a proposal to raise the pensionable age to 68. Although the official retirement age in Japan is 65, the country has the world’s second-highest rate of senior employment, with many older adults working informal part-time jobs to supplement their pensions.

Looking Ahead

Japan’s aging population, especially single elderly women, faces severe economic challenges. Despite efforts to improve income security, significant disparities remain in wages and employment opportunities. With proposed reforms like raising the pensionable age and expanding insurance coverage, Japan aims to address these ongoing issues and enhance financial stability for its elderly citizens, striving to reduce poverty and improve their quality of life.

– Cindy Hong

Cindy is based in Milpitas, CA, USA and focuses on Global Health for The Borgen Project.

Photo: Unsplash

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The Declining Yen and Its Impact on Japan

Declining YenDespite its small size, Japan has consistently ranked as the world’s third-largest economy, following the United States (U.S.) and China. However, in 2024, the country fell to fourth place, overtaken by Germany. Japan has experienced a declining yen, its weakest in history, leading to a rapid economic decline. Businesses relying on imported goods are facing even greater economic challenges. Several factors contribute to Japan’s economic difficulties and this stagnation poses significant concerns for the country’s future.

Reluctance to the Digital Shift

Japan remains one of the few analog societies, still relying on fax machines and cash while retaining traditional methods. This digital gap stems from Japanese companies’ reluctance to adopt information and communications technology (ICT) and a fixed mindset. Renowned tech companies like Sony, successful in the past, resist adapting to new technologies. Additionally, the COVID-19 pandemic exacerbated this issue. While much of the world shifted to remote work, many in Japan continued working on-site, missing opportunities to embrace digitalization.

Japan’s Economic Golden Age

In the 1960s, Japan’s economy flourished, opening to world trade and focusing on exporting goods. The Income Doubling Plan of 1960, which aimed to boost Japanese income through enhanced government support for social welfare and education, played a significant role. During this period, Japan emerged as a leading manufacturer of electronics, automobiles, metals and chemicals. Companies such as Sony, Nikon, Canon, Toyota, Honda, Mazda, Mitsubishi and Suzuki dominated the international market by emphasizing high-quality and high-technology products.

The Economic Bubble Burst

In the 1980s, Japan’s economy grew rapidly, with soaring stock prices, real estate values and the Yen’s strength. This period of economic excess is known as the bubble economy. However, the bubble burst in 1992 when the Bank of Japan raised its interest rate. This led to a stock market crash and a steep decline in asset prices. Since then, Japan has faced economic stagnation, a period often referred to as the lost decades.

The Dilemma of Low Interest Rates

The Bank of Japan has maintained a low-interest rate for decades, contributing to the continuous decline in the value of the Yen. Higher interest rates can boost a currency’s value by attracting foreign investment, which is why countries often raise rates to curb inflation. For instance, the U.S. increased its interest rate during the COVID-19 pandemic to stabilize the dollar. Conversely, lower interest rates can reduce a currency’s value but are used to stimulate economic activities such as borrowing, spending and investing. In Japan, the strategy to drop interest rates to near zero was intended to encourage consumer spending. However, this approach backfired by making the economy less attractive for foreign investment and further decreasing the Yen’s value.

Path Forward for Economic Recovery

Over the years, Japan has resisted raising its interest rates despite economic stagnation. With low demand for the Yen, Japan feared that higher rates would exacerbate its ability to pay off debts. However, in March 2024, for the first time in 17 years, Japan increased its interest rate from 0% to 0.1%, ending its negative interest rate policy.

By 2026, Japan will face a shortage of 2.3 million digital workers due to a fundamental lack of digital skills. Embracing a digital shift to enhance technology promises to spur economic growth. Additionally, gradually raising the interest rate at a steady pace could eventually strengthen the value of the Yen.

Focusing more on tourism offers another avenue to alleviate economic stagnation. Currently thriving due to the declining Yen, Japan’s tourism industry benefits from government efforts to attract more foreign visitors. In 2024, visitor numbers from the U.S. and Germany, where currency strength outpaces the Yen, surged by 64.3%. The weakened Yen draws tourists looking for cost-effective travel options, presenting an opportunity for Japan. By actively attracting international visitors, Japan could leverage its economic challenges to bolster the tourism industry, potentially significantly contributing to the gross domestic product.

Looking Forward

Japan’s decision to increase interest rates and its openness to digital transformation offers hope for economic revitalization. As Japan adapts to global digital trends and continues to enhance its tourism sector, it sets a path toward overcoming decades of economic stagnation and the declining yen. These ongoing strategic shifts promise to gradually restore the strength of the Yen and reinvigorate Japan’s global economic standing.

– Eunsung Koh

Eunsung is based in Seoul, South Korea and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr

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Food Self-Sufficiency and Food Insecurity in Japan

Food Insecurity in JapanJapan is known for its rapid development and hosts one of the world’s largest economies. Over the last century, the nation has made tremendous strides across many domains like technology, education and infrastructure. However, food insecurity remains one significant shortcoming in Japan’s development. 

Japan’s Low Food Self-Sufficiency Rate

Food self-sufficiency means a country produces enough food to feed its entire population without needing to import food from abroad. Japan’s food self-sufficiency rate stands at only 38% on a calorie basis, indicating that less than half of the calories needed to feed the entire Japanese population are produced within the country. In contrast, Canada boasts a calorie-based self-sufficiency rate of more than 200%, while the United States (U.S.) and Australia have rates exceeding 100%, highlighting Japan’s shortcoming in this area.

Impact of Natural Disasters

Several factors contribute to Japan’s lack of food self-sufficiency. One of the most significant is the series of natural disasters that have struck the country in recent years, including crop failures and droughts. These events have led to a steady decline in overall self-sufficiency rates.

Economic Competition

Japan has long imported staples like wheat and soybeans, primarily from the U.S. and China. As the conflict between Russia and Ukraine continues, countries that previously relied on Ukraine and Russia for wheat are seeking alternative sources. Meanwhile, other Asia-Pacific nations, including China, are expanding their economies. This competition for resources could lead Japan to be outbid, potentially increasing food insecurity if these trends persist.

Food Security vs. Nutritional Adequacy

Currently, Japan maintains one of the highest food security rates globally, with only 3.4% of its population experiencing food insecurity. However, Japan’s poverty rate is relatively high compared to other developed countries, standing at 15.7%. A significant portion of this demographic includes elderly Japanese citizens.

Although Japan imports sufficient food, the nutritional value often does not meet requirements, leaving many, particularly those in marginalized communities, without adequate nutrition. Vulnerable populations in Japan, who lack access to supermarkets and imported fruits and vegetables, are more susceptible to inadequate food supplies.

Government Initiatives to Boost Food Self-Sufficiency

In 2022, the government introduced a new framework aimed at boosting domestic production of key food products like wheat and soybeans. Additionally, the Japanese government has distributed food guides in schools to educate young people about nutrition and the benefits of eating seasonally. Emphasizing seasonality ensures that the Japanese diet relies primarily on locally produced foods. This approach increases the proportion of calories consumed in Japan that come from domestic sources.

Future Directions in Food Security

Japan’s commitment to enhancing its domestic agricultural production is a promising step toward greater food self-sufficiency. By investing in local farming, prioritizing seasonal eating and educating the public about nutrition, Japan can reduce its reliance on imported goods and strengthen its food security. These efforts are crucial not only for economic stability but also for ensuring the nutritional well-being of all its citizens.

– Adrita Quabili

Adrita is based in Atlanta, GA, USA and focuses on Celebs and Politics for The Borgen Project.

Photo: Flickr