Why does Japan work so hard? | CNBC Explains

Summary

In Japan, long working hours are the norm, with 'karoshi', or death by overwork, a recognized phenomenon. The salaryman culture demands loyalty and long hours, often unpaid, with little time off. Despite low productivity, the work ethic stems from Japan's economic miracle. The government and companies are trying to reduce hours with initiatives like Premium Fridays, but cultural challenges persist. With an aging population and labor crisis, Japan may turn to robotics to compensate for the workforce shortage.

Takeaways

• 😓 Japan has a strong work culture, with long hours often being a norm, leading to severe consequences like karoshi (death by overwork).
• 🏢 Around a quarter of Japanese companies have employees working more than 80 hours of overtime monthly, often unpaid.
• 💼 The 'salaryman' culture emphasizes loyalty to the company, with expectations of long hours and participation in after-work activities.
• 🚫 Many workers don’t take their full vacation entitlement, with a 2017 survey showing that Japanese workers left half of their paid days off unused.
• 💔 Japan's work culture is rooted in its post-1950s economic miracle, where collective success is prioritized over individual well-being.
• 📉 Despite long hours, Japan has the lowest productivity among G7 nations, showing a disconnect between hours worked and output.
• ⚠️ Karoshi is officially recognized by the government, often linked to heart attacks, strokes, or suicides due to overwork stress.
• 📅 The government has introduced several initiatives, such as mandatory vacation days, Mountain Day, and Premium Fridays to reduce working hours.
• 😔 Premium Fridays, intended to allow employees to leave early once a month, had minimal participation, highlighting deep-rooted cultural issues.
• 🤖 Japan faces a labor crisis due to a declining population and low immigration, looking to robotics as a solution, though work-life balance remains a challenge.

Q & A

What is 'karoshi' and why is it significant in Japan?

'Karoshi' means death by overwork in Japan, typically due to heart attacks, strokes, or suicide caused by work-related stress. It is legally recognized by the government and highlights the serious consequences of Japan's long working hours.

Why do Japanese workers often work long hours, and what are the expectations in corporate culture?

Japanese workers, especially salarymen, are expected to show loyalty to their company, often working long hours and participating in after-work activities. The culture emphasizes the success of the company over the individual, creating pressure to work excessive hours.

How common is unpaid overtime in Japan?

Unpaid overtime is highly common in Japan. Nearly a quarter of Japanese companies require employees to work over 80 hours of overtime per month, with much of this overtime going unpaid.

How does Japan's vacation usage compare to other countries?

Japanese workers often do not use their full vacation allowance. In a 2017 survey, Japanese workers left 10 out of their 20 entitled vacation days unused, the highest among countries surveyed.

What historical factors contributed to Japan's demanding work culture?

Japan's work ethic stems from its 'economic miracle' beginning in the 1950s, where rapid growth transformed it into the world's second-largest economy. This period fostered a culture where collective success and dedication to work were prioritized.

Is there a direct correlation between long working hours and productivity in Japan?

No, despite the long working hours, Japan has the lowest productivity among G7 nations. This indicates that long hours do not necessarily lead to high efficiency or output.

What measures have been taken by the Japanese government to reduce overwork?

The government has implemented several initiatives, such as mandating at least five vacation days per year, establishing a rest period between workdays, creating the 'Mountain Day' holiday, and launching 'Premium Fridays' to encourage employees to leave work early once a month.

What challenges hinder the success of initiatives like Premium Fridays?

Cultural challenges, such as the emphasis on group over individual actions, prevent employees from leaving work early. In fact, less than 4% of employees participated in the first Premium Friday, as no one wanted to be the first to leave.

What impact does Japan’s aging population have on its labor force?

Japan’s aging population and declining birth rate are leading to a labor shortage. The population is projected to shrink by nearly a third by 2065, creating pressure on the remaining workforce and the economy.

How is Japan addressing its labor shortage, and what role does technology play?

Japan is looking to robotics to fill its labor gap, as immigration remains limited. Robots are being used in various industries, including manufacturing and agriculture. However, it is unclear if this technological advancement will lead to a better work-life balance.