It is feared that anxiety about future income may influence personal consumption. Fortunately, no serious social unrest has erupted as a result of these severe employment conditions. Unemployment is now a hot issue in many advanced economies. The OECD's 1994 Jobs Study cites high, non-wage personnel costs like fringe benefits and a shortened workday as sources of these high rates. Unemployment is now higher than average among the younger generation, and has led to serious social unrest in Europe.
Wages remain stable, and unit labor costs remain at excellent levels.
The problem in the US labor market is the widening disparity in household earnings. In contrast, Japan's employment situation has performed better. Moreover, earnings inequality among income strata is declining. The social unrest that might arise under severe unemployment conditions is far less serious in Japan, but the labor market problem is a different story, and may be as serious as it is in Europe and the United States. Japan's employment and management systems are often praised for maintaining low unemployment rates and ensuring stable employment.