The post-pandemic recovery has recently lost momentum (Gross domestic product, volume)
Inflation has risen above target
Japan’s population is projected to remain among the oldest in the OECD in 2050
The post-pandemic recovery has recently lost momentum
Long-standing challenges should be tackled
Successful vaccination helped overcome COVID-19
The recovery in private consumption has recently moderated
Inflation has become more broad-based
Labour markets have become tighter
Wage growth dynamics are gradually changing
China and the United States are Japan’s main trading partners
The recovery in exports and industrial production has been volatile
Divergent monetary policy with peers creates pressures
The banking system appears to be sound
Financial stability risks warrant vigilance
Fiscal consolidation efforts should include expenditure and tax measures
Reforms are needed to ensure long-term fiscal sustainability
Fiscal projections are sensitive to population assumptions
The use of supplementary budgets and contingency reserve funds has increased
Population ageing exacerbates fiscal sustainability challenges
There is room to reduce the fiscal cost of health and long-term care
The share of consumption and personal income taxes is relatively low
High levels of R&D spending are mostly sustained by large enterprises
Public support of R&D spending is largely tax based
Engagement in basic research projects is weak
The age and gender diversity of university professors remains low
Government guarantees for SME loans have surged further with the pandemic
The venture capital market is undersized
Levels of perceived corruption are relatively low
Bold reforms are needed to reach ambitious targets
Investment needs towards decarbonisation are large
Carbon pricing is underutilised
Public support for climate change policies varies across measures and countries
Japan’s population and employment will decline significantly under current parameters
Japan’s elderly dependency ratio is high and will continue rising
Reforms to boost fertility, employment rates and foreign worker inflows would mitigate the decline in employment
Japan’s total fertility rate has remained below two since 1975
The relationship of fertility with per capita income and female employment has evolved
The share of single persons and the mean age of marriage have risen significantly
Childlessness is relatively high among Japanese women
The number of children for couples by years of marriage has edged down
The decline in the number of births is accelerating
Government spending on elderly far outpaces outlays for families
Population and labour force projections under different fertility scenarios
A number of factors result in a gap between the actual and ideal number of children
The low wages of non-regular workers increase the share who are single
Public expenditure on family support in Japan is relatively low
Childcare enrolment and capacity and female employment have risen
The take-up of parental leave by men is low and the duration is short
Enrolment in after-school tutoring institutions (juku) is common
The gender imbalance in paid and unpaid work is large
Japanese women are giving birth at an older age
Gender disparities in Japan’s labour market remain large
Labour force projections if female employment rises to the rate for men by 2050
Non-regular employment is concentrated among women
The rate of non-regular employment is much higher among married women
Earnings of non-regular workers are low compared to regular workers
Tax and social insurance reform could boost female labour participation rates
Women’s share of management positions is low
Employment rates for older persons have trended up in the past few decades
Long-run labour force projections with a rise in the employment rate of older persons
Japan’s seniority-based wage system remains strong
Most companies still set a mandatory retirement age of 60
Many workers become non-regular employees at age 60
Japan ranks low on the OECD’s Priorities for Adult Learning dashboard
Japan’s foreign population is relatively small but increasing
Net emigration of foreigners to Japan has risen since 2012
The number of foreign workers in Japan is rising
Foreign workers tend to be employed in small firms and in the service sector
The impact of increased net immigration on employment in Japan
There is room to improve policies to attract and integrate foreign workers
Foreign workers in the Specified Skilled Worker Programme cover a range of sectors