The unemployment rate is defined as the percentage of people in the total labor force who usually lost their jobs, has failed in seeking jobs or actively looking for jobs. Unemployment is one of the most concerned statistics.
This is because an increase in unemployment rates indicates that the economy of that nation is under performing. Similarly, falling rates have shown that economic growth is usually accompanied by higher inflation rates and could be expected an increase in interest rates.By the end of the 20th century, Japan’s unemployment rate had risen above 3% to 4%. Japan’s job market has collapsed since 1993. By 1995, Japan’s unemployment rate was already above 3%. In April 1998, Japan’s unemployment rate had risen to more than 4 percent due to the greatest recession since World War II.
During this period, a lot of changes had taken place. For example, the early retirement scheme, limiting of overtimes, flexible payment schemes, and increasing part-time employment. These practices resulted in Japanese companies trying to reduce the workforce to the minimum number. And thus, causing the unemployment rate in Japan to increase.Japan’s unemployment rate was 5.
4% in the year 2002 which was sharply higher than the previous year. It is also seen on the graph that during the year 2008 and 2009, there is an obvious increase. This was the biggest jump in the unemployment rate since the year 1967 in Japan. The government says most of the job losses have come from manufacturing, wholesale, retail, and restaurant sector. This is mainly because of the global financial crisis. Not only the stock market had crashed down, a number of small factories were also forced to shut down. Besides, the number of vacancies in Japan doesn’t match the number of people looking for a job and the household spending in the country is also falling. As a conclusion, the global financial crisis is the major reason that caused a high rise in Japan’s unemployment rate.
However, in the year 2003, the unemployment rate in Japan was starting to drop and the unemployment rate was sharply lower in the year 2015 which was 3.3%. The unemployment rate, which consists of people who didn’t work or looking for work, fell to 3.
1% in November 2015. 3.4 percent are from men and 2.7 percent from women. That was the lowest level in 20 years.The reasons that caused Japan’s unemployment rate to fall was the companies stepped up hiring as the economy in Japan was stabilized. Companies in the country are grappling with a deepening labor shortage as the rapidly aging population means fewer workers.
On the other hand, the relation between the unemployment rate and wages is not as strong as it used to be, and the drop in the unemployment rate may have limited impact on wages.In conclusion, although based on the graph there are some ups and downs throughout the 20 years, the unemployment rate of Japan is still considered low, this is because Japanese have a mindset that is: A young person is idle if he or she is in good health but unemployed. And other people do not hold the responsibility to pay tax and raise them.
This encourages young people to seek a job so they will not be a burden to the society.