Post by ehsanulh125 on Jan 9, 2024 7:11:17 GMT
One of the most interesting examples of economic development after the Second World War is Japan. As a lost and destroyed country, the speed of post-World War II reconstruction, fanatical social commitment, a series of technological and production-organizational innovations, and decades of favorable demographics together laid the foundation for the decades of the economic miracle. The favorable period was closed by the asset collapse of 1989-1991, which triggered an unprecedented adjustment, which in Japan is referred to as the lost decade. From an economic point of view, Japan has not been able to escape the bursting of the asset price bubble since then, considering many economic factors.
The development of Japan's working-age Country Email List population strongly determined the country's economic performance. The total population of Japan at the end of 1945 was 72.2 million. The population of working age (15-64 years) increased significantly after the Second World War, when the data service was introduced in 1968, it was 69.4 million people, which peaked at 87 million in the mid-1990s. Since then, it has decreased significantly and amounted to 74 million people in December 2022. Such a drastic reduction in the number of the working-age population should have triggered a significant increase in wages due to the labor shortage. Despite the difficulty, Japan's productivity has been exceptionally high among developed countries in recent decades.
Whoever draws attention to the persistently low GDP growth rate of the Japanese economy is right. However, more importantly, if output increases by 1 percent per year while the labor force decreases by 1 percent, productivity per employee increases by 2 percent. The high productivity expansion experienced in Japan in recent decades remains just a dream in the majority of developed countries. This should also have been a factor with a wage-increasing effect. Japan has a historically low unemployment rate. After 1990, the unemployment rate never rose higher than 6 percent, and all this was achieved with a record high employment rate. The above in itself hides a combination that needs explanation. Record low unemployment, high productivity, yet wages have not risen.
The development of Japan's working-age Country Email List population strongly determined the country's economic performance. The total population of Japan at the end of 1945 was 72.2 million. The population of working age (15-64 years) increased significantly after the Second World War, when the data service was introduced in 1968, it was 69.4 million people, which peaked at 87 million in the mid-1990s. Since then, it has decreased significantly and amounted to 74 million people in December 2022. Such a drastic reduction in the number of the working-age population should have triggered a significant increase in wages due to the labor shortage. Despite the difficulty, Japan's productivity has been exceptionally high among developed countries in recent decades.
Whoever draws attention to the persistently low GDP growth rate of the Japanese economy is right. However, more importantly, if output increases by 1 percent per year while the labor force decreases by 1 percent, productivity per employee increases by 2 percent. The high productivity expansion experienced in Japan in recent decades remains just a dream in the majority of developed countries. This should also have been a factor with a wage-increasing effect. Japan has a historically low unemployment rate. After 1990, the unemployment rate never rose higher than 6 percent, and all this was achieved with a record high employment rate. The above in itself hides a combination that needs explanation. Record low unemployment, high productivity, yet wages have not risen.