Government Urges Workers to be More Productive, Older

August 7, 2007
By Ken Worsley

The government released a white paper today that urges companies to fight against the fall in population by helping their employees to become more productive. As the Nikkei puts it:

The Abe government has set a target of raising labor productivity by 50% from current levels in the next five years. Touching on this issue, the report urges companies to conclude more mergers and acquisitions aimed at improving labor productivity by shifting the allocation of management resources…

It goes on to say that takeover defense measures designed primarily to protect management could impede efforts to boost operational efficiency and labor productivity.

Labor productivity in Japan is roughly 70% of the U.S. level, and the pace of growth among nonmanufacturers is particularly slow, according to the report.

We’ve already discussed the absurdity of Abe’s plan here. But what I’m seeing is a Cabinet simply putting its collective head in the sand and refusing to admit there is a problem that needs it to do some work with, rather than simply ‘urging’ companies to get their workers to work ~~better~~ harder.

As far as getting more women in the workplace goes? The Associated Press gave us this gem over the weekend: Career Women in Japan Find a Blocked Path. We’ve said it before, but it’s worth repeating:

In 1985, women held just 6.6 percent of all management jobs in Japanese companies and government, according to the International Labor Organization, a United Nations agency. By 2005, that number had risen to only 10.1 percent, though Japan’s 27 million working women made up nearly half of its work force. By contrast, women held 42.5 percent of managerial jobs in the United States in 2005, the organization said.

How about those young workers? Again, the Nikkei points out:

The report warns that contract workers, “freeter” part-timers and other types of nonregular employees are less likely than regular staff to pick up job skills and knowledge when they are young. It also expresses concern that the imminent mass retirement of baby boomers will worsen labor quality and limit growth in labor productivity.

So…the solution would be to make them full-time, right? Then you can raise prices, right? Or is it not that simple?

Filed Under Cabinet Office, Labor and Wages