Figure 12: Changes in labour share ratio and employment condition D.I.

From 2013, the excessive employment trend has turned to an insufficient trend as the labour share ratio decreases in conjunction with the improvement of business performances.

Source: Prepared by the Office of Counselor for Labour Policy, MHLW, based on the “Financial Statements Statistics of Corporations by Industry” (quarterly journal) Ministry of Finance, and “National Short-Term Economic Survey of Enterprises in Japan (Tankan)” Bank of Japan (BOJ)

(Note) 1) Labour share ratio = personnel expenses / (ordinary profit + personnel expenses + depreciation cost)

Figure 13: Relationship between labour productivity and real wage

☐ The increase rate of real wage becomes higher in proportion to the increase rate of real labour productivity.

Source: Estimated by the Office of Counselor for Labour Policy, MHLW, based on the “Financial Statements Statistics of Corporations by Industry” (quarterly journal) Ministry of Finance

(Note) 1) Real labour productivity is determined by calculating real added value per employee using GDP deflator.

2) Real wage is determined by calculating real value using GDP deflator, based on the formula: nominal wage per person = personnel expenses/number of employees.

2) Labour share ratio is the moving average of the last quarter.

3) The shadowed part in the graph indicates a recession period. Figures between the period from July to September 2012 and October to December 2012 are provisional.

3) Figures from FY 1995 to FY 2012.

4) Figures in brackets are t-value.

Figure 14: Relationship between IT capital-labour ratio and labour productivity

○ In both manufacturing and non-manufacturing industries, labour productivity becomes higher in proportion to IT capital-labour ratio.

Source: Estimated by the Office of Counselor for Labour Policy, MHLW, based on the "Japan Industrial Productivity (JIP) Database 2013" The Research Institute of Economy, Trade and Industry

(Note) 1) Manufacturing industry includes businesses in industrial category 8-59 and non-manufacturing industry includes businesses in category 60-97 (excluding 72 residences that cannot use data) in JIP database.

2) Real labour productivity is calculated using real added value (1 million yen / man hour (1000 x total sum of real working hours) and logarithmically transformed.

3) IT capital-labour ratio is calculated as IT capital stock (1 million yen, price in 2000)/number of employees and logarithmically transformed.

4) Pooled data from 2005 to 2010

5) Figures in brackets are t-value.

Figure 15: Relationship between labour quality and labour productivity

○ In both manufacturing and non-manufacturing industries, labour productivity becomes higher in proportion to the increase rate of labour quality.

Source: Estimated by the Office of Counselor for Labour Policy, MHLW, based on the "Japan Industrial Productivity (JIP) Database 2013" The Research Institute of Economy, Trade and Industry

(Note) 1) Manufacturing industry includes businesses in industrial category 8-59 and non-manufacturing industry includes businesses in category 60-97 (excluding 72 residences that cannot use data) in JIP database.

2) Real labour productivity is calculated using real added value (1 million yen / man hour (1000 x total sum of real working hours) and logarithmically transformed.

3) Labour quality index: 2000 = 1.000