Page 53 - Forbes - Asia (April 2019)

have not been growing in recent years despite need to pay more to attract contract work- 36.
record-low unemployment. Abe has pushed ers. When the new legislation is implemented TOSHIO MOTOYA
hard to get Japanese companies to raise wages, comprehensively, wages will be higher even $1.2 BILLION Ì
with some success. Yet the real problem lies in when adjusted for the ups and downs of the APA GROUP
the growing trend of companies hiring more business cycle. Given Japan’s gender wage gap AGE: 75
contract workers and paying them almost less of about 25% (much higher than the OECD
than half what they pay full-time workers. average of 15%), and as higher wages apply to 37.
According to government data, the number of both men and women, more women will be MUNEAKI MASUDA
$1.17 BILLION 3
contract workers nearly doubled to 20 million attracted to enter the workforce, further boost- TSUTAYA
in 2017 from 11 million in 1999. ing household incomes and spending power. AGE: 68
There are, however, signs that Abenomics’ The ingredients for success of the third
third arrow is beginning to work. Women’s arrow of Abenomics are slowly coming togeth- 38.
labor-force participation has been steadily er. As the size of the workforce becomes more KANAZAWA
rising—the World Bank estimates the women’s stable through rising women’s participation BROTHERS
labor-force participation increased to 51% in rate; and as households, supported by stronger $1.11 BILLION T
2017 from 48% in 2012. More impressive is wage earnings, spend more, the domestic con- SANYO BUSSAN
the rise of the prime age labor force participa- sumer market will become more attractive to
tion rate, which focuses on those aged 24 to Japanese companies. This could trigger Japan’s 39.
54. In 2000, Japan’s prime age women’s labor transition from export dependence to becom- SOICHIRO
FUKUTAKE
force participation was estimated at 67%, far ing more domestic demand driven. $1.1 BILLION T
below the 77% in the U.S. By 2016, however, it Prime Minister Abe was reelected in Sep- BENESSE HOLDINGS
had risen to 76%, overtaking the U.S. (which tember 2018 and is expected to serve until AGE: 73
slipped to 74%), according to the Brookings 2021. This will ensure the continuity of Abe-
Institution. This recent trend of rising women’s nomics for at least a few more years. Should 40.
the current embryonic structural reforms SHOJI UEHARA
take root, a more balanced Japanese economy $1.08 BILLION T
THE DECLINE OF JAPAN’S TRADI- could emerge, which would in turn trans- TAISHO PHARMACEUTICAL
TIONAL, LIFETIME EMPLOYMENT form businesses’ operating environment. HOLDINGS
SHOULD ENCOURAGE MORE ENTRE- AGE: 91
PRENEURIAL BUSINESS STARTUPS. The decline of Japan’s traditional, life-
time employment should encourage more
entrepreneurial business startups. Simply put, 41.
YASUAKI
labor force participation is fueling household lifetime employment reduces risk-taking and YAMANISHI
income and economic growth while offsetting saps entrepreneurial energy because it lures $1.07 BILLION T
the declining male labor force. young talents into becoming salarymen with IZUMI
There has also been progress in raising security and stability. As the option of lifetime AGE: 72
wages. In 2018, Japan’s parliament passed employment is rapidly fading, more young
new legislation capping overtime work and Japanese will be motivated to strike out on 42.
to ensure that contract workers are paid the their own as entrepreneurs, including young SUSUMU FUJITA
same as full-time employees for similar work. Japanese women. $1.05 BILLION T
The new legislation allows companies the As a rising share of Japan’s consumers will CYBERAGENT
flexibility to hire and fire contract workers be the elderly, new business opportunities are AGE: 45
while enabling contract workers to earn the opening up for goods and services custom-
same wage as regular workers for the same ized to their needs. E-commerce is particu- 43.
work. Should the legislation be implemented larly promising as a channel for serving these MASAYUKI
ISHIHARA
effectively, it would simultaneously improve elderly consumers. Japan has high IT literacy $1.03 BILLION WX
labor market flexibility and raise wages. rates, fast and extensive internet connectivity, HEIWA
There are signs it is working. One of Japan’s and high mobile penetration. These condi- AGE: 70
largest employers, the logistics group Nippon tions, coupled with superb logistics and
Express, recently announced that it would distribution networks, and underpinned by
raise pay for tens of thousands of contract a high trust culture (for safety of delivery),
workers to match that of its regular staff. mean Japan’s e-commerce sector will become
Japan’s tight labor market is clearly helping. even larger, opening up a new horizon for SUP TDOWN WXFLAT
With record low unemployment, companies entrepreneurial investment. ÌNEW TO LIST 3RETURNEE

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