As regards real consumer spending by worker's households in the postwar period, measured by a simple age bracket cohort, the age brackets 60 to 64, and baby boomers, 55 to 59, have always supported real growth in consumer spending by making a positive contribution. These age brackets have led consumption since at least 1965. In terms of the rate of savings, the elderly group was at the top until 1995 but it now appears that there has been a gradual shift in the high saving rate to the younger generation since the late 1970s.

## (Changes in the Industrial Structure)

The proportion of workers in primary industries fell to 5.0% in 2000, after reaching a high of 48.5% in 1950. This result is due to the significant decrease in the number of workers in agriculture. The share of secondary industries increased to 34.0% in 1970, and then gradually fell in total number in line with the decrease in manufacturing industry share. The proportion of tertiary industry workers has continued to rise as the number of service industry workers has expanded substantially since 1970 (Figure 21).

In terms of the employment status by industry, the number of workers has remained flat since the late 1990s. This is mainly due to a significant slowdown in the pace of increase as a result of a shift in demand for domestic final demand. The breakdown of factors affecting the pace of increase in the number of workers related to the shift in demand for domestic final demand indicates that the contribution made by private consumption has contracted and public expenditure on gross fixed capital formation is on a downward trend. On the other hand, the scale of declining contribution by private expenditure on gross fixed capital formation has weakened and the contribution by exports rose in the latter half of the 1990s. Other factors affecting the shift in demand during the same period may include weak private consumption, reduced public works expenditure, and growth in exports and capital investment.

## (Population and Economy and Society)

Japan's achievement of the longest life expectancy in the world is the result of well-established social security programs in the medical and health services. At the same time, however, the country has one of the world's lowest birthrates, due, it is thought, to an increasing number of women not marrying or marrying later, as a result of a changed sense of values. Amid such a trend, Japan's population is expected to peak in 2006, after following a consistent increase in the post-war period. It is also expected that there will be an ongoing trend towards a declining population, due to aging and the birth of fewer children.

In terms of social insurance benefits and the burdens these have imposed on the economy during the postwar period, the cost of social security has gone up sharply along with the increase in the aging population (Figure 22). When compared to other developed countries, the ratio of social security costs to GDP in Japan is 17.5%, while that of the US is 15.2%; however, it is still relatively lower than that in the EU. The cost of social security in Japan is somewhat higher than in the US and the UK but is lower than in Sweden, Germany, and France. In general, however, the cost of social benefits are not only covered by social contributions but also by public funding, which is sourced from the tax take. The share of social security contribution among the Japanese, including tax burden, is slightly higher than the US, but much lower than the UK, France, Germany, and Sweden.