The average working hours per person remain unchanged for working wives, while the average working hours increased for all wives due to an increase of labour participation; it is inferred that this is one of the reasons for the income increase of wives who are the spouses of householders.

Also, looking at the annual income of husbands from their work and the average value of wives' labor force participation ratio, we can see that the higher the annual income of husbands, the lower the wives' labour force participation ratio. This indicates that, in line with the decline of husbands' income, wives are increasingly participating as labour force in order to support the household budget; we need to further promote the environment so that these people can easily meet their wishes for employment.

## (Employment decreased in the manufacturing industry, but the employment loss was kept to a low level, due to such means as reduction of new hiring)

In 2012, both export-bound production and domestic-bound production declined due to the slowdown of the world economy, end of eco-car subsidy program, etc. While the seasonally-adjusted number of the employed decreased from 10.45 million persons in June 2012 to 10.05 million persons in December, the feeling of excessive employment is not at a level higher than that of the past recession periods, and the unemployed persons whose previous jobs were manufacturing employees are not at a high level. Figure 3 shows the latest reduction of production level and labour input (the product of working hours and number of the employed) and that of the past recession periods; the reduction of production level is relatively small compared to the past periods, and the labour input in light of production level is roughly at the same level as the 11th and 13th business cycles. Behind this, there seems to be an influence of the curbing of new hiring as a result of reduction of new job openings, etc.

## (The baby boomer generation reached age 65 for the first time in 2012; however, the reduction of labour force is alleviated thanks to the increased labour force participation rate of the persons aged 65 to 69)

From April 2006, the enterprises which have a compulsory age retirement system at the age less than 65 are required to take, under the amended Elderly Persons Employment Stabilization Act, one of the following measures to secure employment of elderly people: (1) increase of the retirement age; (2) introduction of continuous employment system, and (3) abolishment of the age retirement system. After 6 years since then, the baby boomer generation (born in 1947 to 1949) reached their 65 for the first time in 2012. On the assumption that the labour force participation rate, the employment rate, etc. by each age class (in 5 year increments) in 2005 remain the same in 2010, the population of each age class in 2010 is multiplied by each of the above rates, and the results are compared to the actual figures in 2010; then we can see that the labour force and the number of the employed of men have increased in the persons aged 60 to 64, suggesting that employment is expanding for this age group, while there may be an influence of economic trends, etc. Similarly, on the assumption that the labour force participation rate, the employment rate, etc. by each age class in 2011 remain the same in 2012, the population of each age class in 2011 is multiplied by each of the above rates, and the results are compared to the actual figures in 2012 as shown in Figure 4; then we can see that the actual figures of the labour force, number of the employed, etc. are greater than the assumed figures, suggesting as a background the increase of labour force participation rate, employment rate, etc. for the group aged 65 to 69.

Also, the percentage of persons aged 65 or over is increasing in the industries of real estate, leasing of goods, services, etc. It is considered that, in these industries, the presence or absence of compulsory age retirement system and the age limit are related to the environment where elderly people can continue their work; it is important for us to promote the policy measures for improvement of employment environment, so that elderly people can continue work according to their willingness and abilities.

## (Fulfillment of job openings is an important issue in the area affected by the Great East Japan Earthquake)

In the area affected by the Great East Japan Earthquake, the ratio of active job openings to active job applicants, etc. were improved thanks to such factors as the reconstruction demand, and fulfillment of job openings is an important issue. According to Figure 5, which shows the situation of job openings and job applicants by each Hello Work and by occupation (as of January 2013), we can see that there is still a shortage of construction workers in the coastal areas. Also, in the marine product processing industry, there is a tendency that workers seek jobs by closely looking at various work conditions other than the wage level, such as ease of working at workplace. In line with the reconstruction of the whole affected area, we need to support fulfillment of job openings and smooth hiring, through detailed assistance at Hello Works.