## Chapter 6 Changes and challenges that Japanese society faces, way of life security in the future

1 Changes and challenges that Japanese society faces
Explain the declining birthrate and a growing proportion of elderly people, globalization of the economy, changes and challenges in the employment environment that Japan is currently facing.
Rapid development of a declining birthrate and a growing proportion of elderly people• A declining birthrate and a growing proportion of elderly people is a common phenomenon in many developed countries. Japan is progressing rapidly in this regard in comparison with other countries.(Various impacts of an aging population)• Change of course of life ... Diversification of course of life (late marriage, unmarried, etc.), longer period of retirement life, etc.• Impact on the economy ... The potential growth rate decreases due to a decrease in the labor force and the reduction of savings.The consumption in general is getting smaller due to a decrease in the size of the working generation, resulting in less demand.• Impact on local communities ... Aging of the metropolitan area, and depopulation of the non-metropolitan areas is becoming more pronounced. There is a concern for difficulty in maintaining communities.• Impact on finance ... Spending on social security programs, such as pensions, medical and long-term care, has increased more.Long-term stagnation of the economy and the progress of globalization• Protracted economic adjustment after the collapse of the financial bubble in the 1990s, etc.→ Lack of demand, which is said to be the ‘lost 20 years’, and deflation, etc. created the economic downturn.• 3 characteristics of recent globalization • • BRICs, proliferation of free trade, advancing of the knowledge economy.• To cope with globalization, international competitiveness through the transformation of the economy to create new added value is a major challenge.
Change in the employment environment• In a highly competitive environment, a review of labor costs is performed, regular employment is reduced and a significant increase in non-regular workers that is suitable for flexible employment adjustment.(The number of non-regular workers was 35.2 % (male 19.9%, female 54.7%) on average in 2011. 30.4% in 2003 (Non-regular workers exceeded 30% for the first time).)• Increase in long-term unemployed (1 year or more)(2010: Record levels of 1.21 million people. 36.2% of the unemployed are long-term unemployed)Widening disparity• Income disparity ... Increase in the rate of relative poverty and the number of welfare recipients broke the record (1951) (approx. 2.05 million people: July 2011) and is still increasing.• Employment gap ... Rate of married, non-regular workers is significantly low compared to regular workers (30 point difference), which makes family formation difficult.• Education gap ... Correlation between academic achievement/opportunity and economic circumstances of the family. This has also affected employment (regular employment rate).
Decrease in actual societal experience, loss of social connection and a sense of solidarity, the emergence of problems such as social exclusion• Increase in the number of those who answered in the future outlook of life that it is ‘getting worse’. Increase in single-person households. Few people answered that, ‘Most people have confidence in others’. Among the people who are marginalized, there is an increase in suicide and child abuse, etc.• The financial situation of the country is the worst in history and on an international level• The outstanding, long-term debt of the Japanese government and municipalities is expected to reach 196% of GDP at the end of 2012.