Are Women Japan’s Hidden Treasures?
A Japanese friend told me this joke. “A happy man is a man who lives in an American house, eats Chinese food, and has a Japanese wife.”
The plight of Japanese women in the workforce in Japan is certainly no joke!
Like many countries, Japan has a severe labor shortage. This is causing an increasing number of employers to be more flexible with working hours. According to an article in the Nikkei Asian Review over three quarters of women of prime age for starting a family are now in the workforce. This is in sharp contrast to the trend of years gone by when new mothers quit their jobs to care for their babies.
In 2017 over 75% of women aged 25 to 39 held jobs. This increase, from less than 70% in 2012, is partially due to companies offering more flexible hours, which subsequently allows these working mothers to hold on to their jobs.
Japan’s tax regulations also don’t make it any easier for women to become one of a household’s major wage earners. As of January 2018, the primary wage earner in a household can claim a tax deduction if the part-time worker spouse doesn’t earn more than JPY1.5 million (US$13,500) per year. Since the great majority of primary wage earners are still males, many women who work part-time positions curtail their working hours to take advantage of this special tax deduction. The amount of the deduction decreases as the spouse’s income rises with zero deduction once the spouse earns JPY2.01 million (US$18,000).
These amounts are mainly related to those spouses who work part-time jobs in supermarkets, convenience stores, call centers, or other places where hours are more flexible, and pay is on an hourly rate. Career women, who are working as regular full-time employees will almost always make more than these allowable tax beneficial amounts.
A bigger issue is the lack of women in senior positions in companies. According to a recent Reuters Poll 75% of Japanese companies have no women in senior executive positions. Further, less than 10% of management consists of female employees. This, despite Prime Minister Abe’s “Womenomics” push to bring more women into the workforce, especially in leadership positions.
Job discrimination against women continues to prevail in Japan. The Reuters survey found that Japanese companies continue to hire men at higher pay rates than women receive. This is despite the fact that companies say their hiring policy is one of non-discrimination on the basis of gender.
Respondents to the survey said that Japan must create a more supportive environment for women to pursue careers. Duh — no kidding, my tomodachi (friend). At 110th out of 149 countries in gender equality according to the World Economic Forum’s latest Global Gender Gap Report, it doesn’t take a rocket scientist to figure that out. Countries are measured on economic opportunity, political empowerment, educational attainment, and health and survival. According to the report, at the current rate of improvement, it will take Japan another century to close the gender gap.
So, despite the fact that Japan is one of the world’s most advanced and democratic countries, why is it so difficult for women to succeed in the workforce?
With a falling birthrate and a rapidly shrinking workforce, why doesn’t Japan do everything possible to bring more of the talented female population into jobs? Kathy Matsui, vice chairwoman at Goldman Sachs Japan, who is credited with creating the term “Womenomics” says that Japan could add over 7 million women to the workforce and increase Japan’s GDP by 13%.
Despite all the efforts, Japan’s discriminatory business culture continues to hold women back. It remains nearly impossible for women to advance their career while raising a family (remember the falling birth rate? This is one reason why). Long working hours, business over evening drinks, a shortage of day-care centers, and a lack of late hours day-care; all tend to push the women away, especially if their husbands are not able, or not willing, to share in the child care duties.
The government is taking steps to alleviate some of the issues. More day-care centers are being approved. Laws limiting overtime work have been passed. Parental leave for both parents has been expanded (although only a handful of fathers take paternity leave).
Despite the continuing issues of gender equality all is not bleak. Now, over half the women who have a child continue working. That’s up from just 38% only eight years ago. More firms, especially the foreign owned firms, are allowing a day or more per week of working from home. Flex time has become more common. And, as mentioned earlier, more day-care centers are opening. Importantly, women are more aware of their working power and what they can bring to the workplace.
Are women Japan’s hidden treasure? Most definitely, they are! Want to hire more of them? Talk to us at iSearch! We know where to find treasure!
Full disclosure: I am married to a Japanese woman (have been for well over half my life); 1/3 of our staff are women (at equal pay and working conditions); I have lived and worked in the world of ever-changing Japan for 30 years.
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