One In Seven Workers In Japan Fall Into The Underclass

Waseda University Professor Hashimoto of the Faculty of Human Sciences has categorized modern Japanese society into five classes, identifying non-regular workers (excluding part-time housewives) as the underclass. This group numbers approximately 8.9 million, representing roughly one in seven of the employed population.

The average annual income of this underclass is around 2 million yen. Moreover, more than 70% of men within this group remain unmarried, largely due to their inability to support household formation and child-rearing.

One significant factor contributing to the rise of this underclass is corporate labor practices. From fiscal 2014 to 2024, Japanese companies significantly increased their retained earnings; however, wages have remained largely flat. Over the past two decades, non-regular employees have earned only 60% to 70% of the wages of regular employees, with little indication that this gap is narrowing.

The growth of lower-paid non-regular positions has entrenched economic insecurity among workers. This situation discourages consumption and child-rearing, and it fuels educational disparities that could undermine Japan’s competitiveness and long-term economic growth.

To address these challenges and close such divides, companies are being urged to adopt inclusive management practices that leave no one behind. Improving conditions for non-regular workers is essential. Additionally, strengthening the potential of mid-career hires from the so-called “employment ice age” generation and senior workers is critical.

Encouragingly, some companies have already begun making meaningful changes. For example:

– **Aeon Retail** has introduced new leadership positions for non-regular staff and offers bonuses, regional allowances, and retirement benefits equivalent to those of full-time employees on an hourly basis.

– **Security firm ALSOK Saitama** has raised the maximum hiring age for full-time employees to 59, thereby creating more opportunities for older workers.

– **NGK Insulators** is tying senior employees’ wages to clear performance standards, enabling them to earn pay levels comparable to those of active managers.

These initiatives represent important steps toward fostering a more inclusive and sustainable workforce in Japan’s evolving labor market.
https://newsonjapan.com/article/147033.php