Land of Wasted Talent

Unlike an earthquake, a demographic disaster does not strike without warning, The Economist’s Schumpeter blog reminds us this week. Take Japan for example; its population of 127m is predicted to fall to 90m by 2050. As recently as 1990, working-age Japanese outnumbered children and the elderly by seven to three. By 2050 the ratio will be one to one. As Japan grows old and feeble, where will Japan’s companies find dynamic, energetic workers, the author ponders. The answer may be across the kitchen table.
Nearly half of Japanese university graduates are female but only 67% of these women have jobs, many of which are part-time or involve serving tea. Japanese women with degrees are much more likely than Americans (74% to 31%) to quit their jobs voluntarily. Whereas most Western women who take time off do so to look after children, Japanese women are more likely to say that the strongest push came from employers who do not value them. A startling 49% of highly educated Japanese women who quit do so because they feel their careers have stalled.
Some 66% of highly educated Japanese women who quit their jobs say they would not have done so if their employers had allowed flexible working arrangements. The vast majority (77%) of women who take time off work want to return. But only 43% find a job, compared with 73% in America. Of those who do go back to work, 44% are paid less than they were before they took time off, and 40% have to accept less responsibility or a less prestigious title. Goldman Sachs estimates that if Japan made better use of its educated women, it would add 8.2m brains to the workforce and expand the economy by 15%—equivalent to about twice the size of the country’s motor industry.

theeconomist