[Annotated] Japan's labor market is tight. So why aren’t wages rising?

High employment is combined with undemanding workers

TRIMLY^[각주:1] DRESSED deliverymen, polite and punctual^[각주:2], are ubiquitous^[각주:3] in Japan. So it was shocking to see one of them kicking his parcels and hurling^[각주:4] his trolley^[각주:5] outside a block of Tokyo flats after apparently finding no one at home. Captured on a camera phone last December, this incident of “parcel rage” went viral^[각주:6], forcing Sagawa Express, one of Japan’s biggest delivery companies, to say sorry to its customers. Many Japanese will have felt sympathy, though, for the video’s frazzled^[각주:7] star.

Over 10% of the country’s firms admit that some workers frequently put in more than 100 hours of overtime in a month. A manager at a nuclear plant in Fukui prefecture worked twice that long in February 2016 before killing himself two months later. The problem is especially acute in low-skilled^[각주:8] service industries. Over the past two decades, e-commerce has vastly^[각주:9] increased the number of parcels handled by firms like Sagawa. Last year, one employee committed suicide after being violently bullied by his boss.

In a survey in 2015 by the Japan Institute of Labour Policy and Training, some workers blamed^[각주:10] their own lack of ability for why they put in so many extra hours. Others dutifully^[각주:11] replied that overtime was necessary to achieve satisfactory^[각주:12] results. But the two most common responses were straightforward economics: lack of staff and extreme fluctuations in demand^[각주:13].

Both of these forces are leaving their mark on^[각주:14] Japan’s labour market. The number of people of working age (15-64 years old) has fallen by about 3.8m since December 2012, when Shinzo Abe, Japan’s prime minister, returned to power. But the number of people actually working has increased by 2.2m. Almost everybody seeking a job has one: unemployment^[각주:15] fell to just 2.8% in February, the lowest rate since 1994. Demographic decline^[각주:16] has collided with^[각주:17] an upswing^[각주:18] in labour demand.

This combination should be highly inflationary. Scarce^[각주:19] workers should be demanding higher wages, forcing firms to charge^[각주:20] their customers higher prices. But pay and prices remain subdued^[각주:21]. In their negotiations with employers, Japan’s labour unions have shown none of the aggression that the Sagawa delivery man inflicted on^[각주:22] his parcels. Although base pay^[각주:23] (excluding bonuses and overtime) has stopped falling in the past two years, it increased by only 0.2% in 2016. That has left inflation well below the 2% target pursued by the Bank of Japan (BoJ).

Japan’s wages remain flat^[각주:24] partly^[각주:25] because strong demand has resulted in an increase in the supply^[각주:26] of labour rather than its price. Japan now hosts more than 1m foreign workers, up from 680,000 in late 2012. More importantly, the number of women and elderly^[각주:27] men in work has increased by more than 2m over that period. Some of these extra hands have been pushed into work by financial anxieties. But others are pulled by economic opportunity^[각주:28]. Mr Akira, who guides traffic^[각주:29] with an illuminated^[각주:30] baton outside a Burger King in Tokyo, is one of the latter. Aged 73, he prefers to stay physically active by earning money from a job rather than paying money to a gym. With the extra yen, he can afford to^[각주:31] take his wife on bus trips to hot springs in Nikko and Kusatsu.

The rising share of part-timers in Japan’s workforce has also dragged down^[각주:32] average pay gains. The aggregate^[각주:33] compensation^[각주:34] of all employees combined (which reflects^[각주:35] employment gains and pay gains) increased by 2.3% in nominal terms^[각주:36] last year, the fastest rate this century.

Market forces do not affect large swathes of^[각주:37] Japan’s workforce. The pay of full-time workers in big firms is not responsive to^[각주:38] labour-market tightness, according to a study published by the BoJ. These beneficiaries^[각주:39] of life-time employment do not fear layoffs^[각주:40] in hard times and cannot expect pay rises in good. But these workers do demand higher pay to offset^[각주:41] past inflation. So, if peripheral^[각주:42] workers’ pay rises by enough to lift consumer prices^[각주:43] a little, that will eventually result in stronger core wages, adding to inflationary^[각주:44] momentum^[각주:45].

To attract and retain^[각주:46] workers, some firms are offering perks^[각주:47] other than pay. They are allowing employees to settle in^[각주:48] one place, rather than yanking^[각주:49] them from one branch to another at short notice^[각주:50]. The government is also encouraging people to clock off^[각주:51] at 3pm on the last Friday of each month (so-called “Premium Friday”). Many unions are also bargaining for shorter workweeks. Last month Rengo, Japan’s leading union federation^[각주:52], reached a deal with^[각주:53] the country’s largest business lobby to limit overtime to less than 100 hours a month in “busy” periods (and 45 hours at other times). The cap may be enshrined in^[각주:54] legislation due later this year.

Obstacles to a shorter workweek remain. An online survey suggested that fewer than 4% of Tokyo workers left work early on the first “Premium Friday” at the end of February. Legal overtime limits will also be hard to enforce. Matsuri Takahashi, a 24-year-old employee at Dentsu, an advertising company, leapt from the third floor of her dorm on Christmas Day 2015. She had put in more than 100 hours of overtime in a month, but her managers had encouraged her to fake her timesheets^[각주:55].

Any new legislation might, however, send a signal that the old ways will no longer work, says Toko Shirakawa, a journalist who sat on a council appointed by the government to propose workplace reforms. Some parcel-delivery companies have reached the same conclusion. Yamato Transport, which runs a door-to-door service, said last month that it is slashing^[각주:56] overtime and raising basic charges for the first time in 27 years. It is also setting up thousands of lockers at places like train stations where deliverymen can leave parcels if no one is at home. That should spare employees the hassle^[각주:57] of a repeat^[각주:58] visit, and save their packages from a good kicking.

1. trimly ; [부사] 정돈하여; 손질하여. [본문으로]
2. punctual ; [형용사] 시간을 지키는[엄수하는] [본문으로]
3. ubiquitous ; [형용사] (주로 명사 앞에 씀) (격식 또는 유머) 어디에나 있는, 아주 흔한 [본문으로]
4. hurl ; 1. [타동사][VN + adv. / prep.] (거칠게) 던지다 [본문으로]
5. trolley ; 1. (美 cart) (英) (슈퍼마켓 등에서 쓰는) 카트[손수레] [본문으로]
6. go viral ; 입소문이 나다 [본문으로]
7. frazzled ; [형용사] (비격식) 기진맥진한 [본문으로]
8. low-skilled ; [형용사] 미숙련의 [본문으로]
9. vastly ; [부사] 대단히, 엄청나게 [본문으로]
10. blame ; [타동사][VN] ~ sb/sth (for sth) | ~ sth on sb/sth …을 탓하다, … 책임[때문]으로 보다 [본문으로]
11. dutifully ; [부사] 충실하게; 예의 바르게 [본문으로]
12. satisfactory ; [형용사] 만족스러운, 충분한 [본문으로]
13. fluctuations in demand ; 수요의 변동 [본문으로]
14. leave one's / a mark on ; (특히 장기적이고 좋지 못한) 흔적을 (~에) 남기다 [본문으로]
15. unemployment ; [U] 1. 실업, 실업률, 실업자 수 [본문으로]
16. demographic decline ; 인구 감소 [본문으로]
17. collide with ; ~와 충돌하다 [본문으로]
18. upswing ; [명사] (주로 단수로) ~ (in sth) (어느 정도의 기간에 걸친) 호전[상승/증가] [본문으로]
19. scarce ; (scar・cer , scar・cest) 부족한, 드문 [본문으로]
20. charge ; 1. MONEY | ~ (sb/sth) for sth | ~ (sb) sth (for sth) (요금・값을) 청구하다[주라고 하다] [본문으로]
21. subdued ; 4. (사업 활동이) 한산한 [본문으로]
22. inflict on ; ~에 영향을 주다, 타격을 주다 [본문으로]
23. base pay ; (수당을 제외한) 기본 급료 [본문으로]
24. remain flat ; 현상을 유지하다, 변화없이 유지되다 [본문으로]
25. partly ; [부사] 부분적으로, 어느 정도 [본문으로]
26. supply ; 3. [U] 공급[제공] (행위) [본문으로]
27. elderly ; [형용사] 연세가 드신(old보다 정중한 표현)사람들이 [본문으로]
28. economic opportunity ; 경제적 기회 [본문으로]
29. guide traffic ; 교통정리를 하다 [본문으로]
30. illuminated ; [형용사] (불빛이) 환한[빛나는] [본문으로]
31. afford to ; ~할 여유가 있다, ~할 형편이 된다, 할 수 있다 [본문으로]
32. drag down ; ~을 (~로) 끌어내리다[몰락시키다] [본문으로]
33. aggregate ; [명사 앞에만 씀] (경제 또는 스포츠) 종합한, 총… [본문으로]
34. compensation ; 1. [U , C] 보상(금) [본문으로]
35. reflect ; 3. [타동사][VN] (사물의 속성・사람의 태도・감정을) 나타내다[반영하다] [본문으로]
36. nominal terms ; The phrase “in real terms” is used to show how measures such as economic growth, savings or wages change after inflation, while “nominal terms” is used when the adjustment has not been made. ;; 인플레이션을 고려하지 않은 명목상 지수나 수치 [본문으로]
37. swathe ; (또한 격식) 2. <기다란 띠 모양의 것・지역> [본문으로]
38. be responsive to ; …에 빠른 반응을 보이는. [본문으로]
39. beneficiaries ; [명사] 수혜자, 수익자 [본문으로]
40. layoff ; 1. (불경기로 인한) 일시[강제] 해고[휴직] (기간). [본문으로]
41. offset ; [타동사][VN] (off・set・ting , off・set , off・set) ~ sth (against sth) 상쇄[벌충]하다 [본문으로]
42. peripheral ; 1. ~ (to sth) (격식) (중요하지 않은) 주변적인, 지엽적인 [본문으로]
43. consumer price ; 소비자 가격 [본문으로]
44. inflationary ; [형용사] (주로 명사 앞에 씀) 인플레이션의[에 의한] [본문으로]
45. momentum ; [U] 1. (일의 진행에 있어서의) 탄력[가속도] [본문으로]
46. retain ; vn], (비교적 격식), (참고: retention , retentive) 1. (계속) 유지[보유]하다 [본문으로]
47. perk ; (격식 per・quis・ite) [주로 복수로] (급료 이외의) 특전 [본문으로]
48. settle in ; (새 집·직장 등에 자리를 잡고) 적응하다 ; 동의어 settle into something [본문으로]
49. yank ; (비격식) 홱 잡아당기다 [본문으로]
50. at short notice ; 예고 없이[촉박하게] ;; 동의어 at a moment’s notice [본문으로]
51. clock out/off ; (시간기록계에 카드를 넣어) 퇴근 시간을 기록하다, 퇴근하다 [본문으로]
52. union federation ; 노조 연맹, 협동 조합 [본문으로]
53. reach a deal ; 1. 거래를 성사하다 2. (정치, 경제 상의) 정책, 방침이 통과되다. [본문으로]
54. enshrine ; [타동사][VN] [주로 수동태로] ~ sth (in sth) (격식) (법・권리 등을 특히 문서상으로) 소중히 간직하다[모시다] [본문으로]
55. timesheet ; [명사] 출퇴근 시간 기록 용지 [본문으로]
56. slash ; 2. [흔히 수동태로,흔히 신문에서] 대폭 줄이다[낮추다] [본문으로]
57. hassle ; [C , U], (비격식) 1. 귀찮은[번거로운] 상황[일] [본문으로]
58. repeat ; 2. (비슷한 일의) 반복[되풀이] [본문으로]