## Summary

In the Analysis of the Labour Economy 2013, we have conducted analysis under the theme of "Employment, Human Resource and Ways of Working in the Midst of Structural Change," which can be outlined as follows.

### 1. Trends and features of the labour economy

## ☐ Trends of general economy, employment and unemployment

After the financial crisis in the autumn of 2008, the Japanese economy entered a phase of expansion from March 2009, overcame the temporary fall due to the Great East Japan Earthquake in 2011, and has maintained the momentum in early 2012. After that, although the economy was weakened due to the decline of export and production because of the global slowdown, it turned to pick up in 2013.

The ratio of active job openings to active job applicants was 0.80, up 0.15 from the last year, and the unemployment rate was 4.3% in 2012, down 0.3 from the last year; the employment situation is showing movements of improvement recently, although it still remains severe. In the manufacturing industry, the production activities showed a trend of decline: the feeling of excessive employment grew, and new job openings continued to decrease.

The income of wives in workers' households became the highest ever in 2012; one possible reason for this is because of their participation in the workforce as part-time workers, etc., reflecting the decrease of the householders' annual income.

While employment of elderly persons has been expanding up to now, part of the baby-boomer generation (born between 1947 ~ 1949) has entered their late 60's in 2012, and a growing number of them are continuing work after they reach the age of 65.

In the areas affected by the Great East Japan Earthquake, the ratio of active job openings to active job applicants has improved in line with the reconstruction demand, but there are still issues to be addressed, including matching of workforce (such as the shortage of construction workers) and population decline, recovery and restoration of coastal areas.

Looking at the employment situation of persons with disabilities, the actual ratio of persons with disabilities to total employees in private companies is 1.69% and the number of employees with disabilities is 382,000 as of June 1, 2012, and the number of persons with disabilities who were employed via Hello Works was 68,321 in fiscal 2012; all of these figures are the highest ever.

## ○ Trends of wages and working hours

As for the wages in 2012, the total sum of cash earnings continued to be on a weak note, decreasing for a consecutive two years and by 0.7% compared to the last year, and the scheduled wages decreased for a consecutive seven years. In a medium and long term perspective, one of the factors which is contributing to the decrease of total sum of cash earnings is the increasing percentage of part-time workers whose total sum of cash earnings is relatively low. Focusing on the breakdown of full-time workers' total sum of cash earnings, we can see that the fluctuation of scheduled wages is generally small and the fluctuation of special wages is generally large after 1998 when the total sum of cash earnings began to decrease.

As for the working hours, all of the total actual working hours, scheduled working hours, and extra working hours increased in 2012 compared to the last year. Economic performance strongly affects the extra working hours; in and after May 2012, the extra working hours in the manufacturing industry decreased, but began to increase from December 2012.

## ○ Trends of prices and workers’ household expenditures

As for the prices, the domestic commodity prices decreased in 2012 due to the concern over the global economy slowdown, but gradually increased from December 2012 in line with the yen fall beginning from autumn. The consumer prices (general, excluding fresh foods) decreased by 0.1% compared to the last year, down for a consecutive four years, due to the price fall of consumer durable goods, etc.

Both the nominal and real consumer expenditures of workers' households increased in 2012. Transportation and communication expenses increased due to such factors as the new eco car subsidiary program and the further popularization of the Internet and mobile phones (including smart phones).

During 2012, consumer confidence did not recover to the level before the Great East Japan Earthquake, but began to pick up from January 2013 thanks to the heightened future expectation, in particular in terms of the employment environment, in reaction to the rise in stock prices, and emergency economic measures, etc.