Japan faces a severe productivity problem, a stagnant economy, and an aging population.
The government’s solution was the four-day workweek, but it’s failing.
The fact that a country has a word specifically to describe deaths from overwork (karoshi) says a lot about its work culture. Japan has legislated the minimum number of days off employees must have each week and the number of overtime hours they can work—not because of the companies but because of the employees who say they can live without the limits.
In this context, it’s unsurprising that companies aren’t implementing the four-day workweek model at the pace the government requires to revive the economy and local consumption.
Four-day workweek in Japan: a cultural challenge. Japan, known for its intense work culture, launched an initiative in 2021 to shorten the workweek and reduce associated costs. However, the Japanese government has failed to convince its workers to adopt the four-day workweek.
The main problem lies in the country’s work culture, as many employees resist taking one more day off than required by law. Strong social pressure to seem committed to the company makes it complicated for employees to follow the new rules.
As reported by the Associated Press, 85% of companies say they force employees to take two days off a week and offer limited paid overtime. However, many voluntarily work “extra hours,” not recorded as overtime or paid.
Japan needs to shorten the workweek. The different pilot projects in other countries on the four-day workweek have found that working fewer days a week encourages internal consumption. According to the pilot in Valencia, Spain, employees shop and spend more on leisure and entertainment.
The Japanese economy is stagnating, so the government has set out to improve the country’s productivity and get workers out of the office to boost the local market. To this end, the government has launched various campaigns to reduce karoshi deaths, improve flexibility, and tighten limits on overtime and days off with initiatives such as hatarakikata kaikaku (work style reform), which advocates a four-day workweek.
The Japanese don’t want to work less. Against all odds, the main obstacle to implementing the four-day workweek in Japan isn’t the economy but the workforce. According to Business Insider, Panasonic, one of the country’s leading companies, adopted the measure in 2022.
However, of the 63,000 employees eligible for the workweek reduction plans at the Japanese company, only 150 have opted to work four days a week. Automotive giant Toyota is also contributing to this shift in work culture, changing its production system to implement the four-day workweek.
It’s not just consumption, it’s productivity. Despite Japan’s stoic work culture, productivity is one of the country’s biggest problems. Japan’s aging population and low birth rate have led to a significant labor shortage crisis.
According to Reuters, a study backed by the Japanese government estimates that the country will face a shortage of nearly one million workers by 2040. This issue is forcing officials to streamline work processes and improve the productivity of their industries. Something the four-day workweek has proven to do.
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