Working poor in Japan

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1 Working poor in Japan ~ Do you think that poverty in developed country is self-responsibility? ~ Ⅰ. Introduction Do you know how many people are in poverty now in Japan? According to OECD data in 2000, Japan is showed as worst fourth country in OECD countries which have large poverty rate. (worst: Mexico 18.4%; 2 nd worst: Turkey 17.5%; 3 rd worst: USA 17.1%; 4 th worst: Japan 14.9%) On the other hand, Northern European countries have low rate. For example, Sweden and Denmark are 5.3%. Moreover, average rate in OECD countries is 10.6%. As you know, Japanese situation is comparatively serious. In this OECD data, poverty means relative poverty; the people whose income is half or less than national median income. When you imagine people who are in poverty, as the first impression, what kind of people do you picture in your mind? Is it homeless people who couldn t get jobs or lost them? Young people who work part-time jobs cause of job shortage? Or old couples who are suffering from high-expenses for medical treatment or nursing care? As you can imagine, there are so many kinds of people who are in poverty. And thus, it is impossible to enumerate all kinds of poverty situation. In this time, I focus on working poor. This is one kind of Japanese typical and most serious poverty. And also the number of them is increasing year by year, also the situation is going worse. Despite they are working even today, they are in poverty because their wages are inhuman and they have less social welfare by the government. One more thing, as you know Japan has large number of suicides. One of the main causes is death from overwork. This is deeply connected with the issue, working poor. So, to reduce the number of poverty and suicides, it s important to consider working poor. I d like to show you how faulty Japanese working situation. And also I argue that poverty is not self-responsibility because Japanese working system is making poverty. 1

2 Ⅱ. What s the working poor? In recent years, most of all people would become to hear a phrase: working poor. This word means that people whose annual income is under the line of the lowest living expenses (= national standard of the household receiving welfare) in spite of working. Giving a concrete example, the worst line of living expenses in Tokyo for a single person-household is 130,000 yen on a monthly basis, and for a general standard household (= parents and one child) is 220,000 yen on a monthly basis. The standard for receiving welfare is different in each area, household or situation etc. Ⅲ. How many people are in poverty? As you can see from the data above, it can be said that people whose annual household income is less than million yen, which is average in 2006, are relative poverty. As you can see a date right side, there are 21.8% of people whose annual income is under 2 million yen in In other words, one-fifth is people whose annual income is under 2 million yen and most of them are called as working poor Rate of people whose annual income is under 2 million yen Ⅳ. Who is mainly working poor? 1 Irregular workers & part-time workers. From after the long depression span in 1990s, employment system has been changed full employment into irregular employment. For the last decade (in 2

3 1997~2007), the number of irregular workers had been increased more 5.74 million, and regular workers had been decreased 4.19 million. So now, it can be said that one-third worker is irregular worker like part-timer, temporary worker or semi-employee. In young age (15~24 years old), it is 45.9% and in female, 53.4% of them are irregular workers Irregular workers Regular workers (The data above shows the changes in the number of irregular and regular workers.) According to the national research in 2006 by the government, average of part-time worker s income was about million yen. And thus, at least million people 1000 regular whose income were under 2 workers million yen were working 800 poor in The data on left side shows 600 irregular that each type s amount of wokers income and up-down. In this data, the average of 400 lifelong-wages for a part part-time time worker is million 200 wokers yean. For a irregular worker s is million 0 yen. And for a regular worker s is million years yen. It means that even old average of lifelong-wages for a irregular worker is half of regular worker s. Despite irregular workers are working almost same-hours as regular workers, the gap of wages is too wide. It s too strange, why our wages is so much different? The name of working position is different, to be sure, but the working hours and contents in any position are almost same. Q. Why the number of irregular workers is increasing? From after the long depression span in 1990s, most of big companies had been changed their employment system. They reduce their full-time workers and left only workers who are main forces in order to save personnel expenses and achieve better company s results. They cover up the other working-forces as type of irregular employment. In other words, irregular work means not only low-wages but also company can be easier to fire workers whenever they feel their management would be a little bit of worse. 3

4 2Single mother family According to OECD data in 2008, Japan is 9 th worst country which has high child poverty rate: 14.3%. (Average of child poverty in OECD countries is 11.2%) It may seems that Japan doesn t have so high rate. However, as seeing rate of child poverty in single parent family, Japan has 57.9 which is worst 2 high rate. (Average in OECD is 20.6) Moreover, according to Japanese government research, 69% of single mother in Japan has part-time job or irregular work. Most of single mother family is in poverty because their income is not enough. average of income in each family national basic research of life in 2006 Single mother: 2.13 million yen/ year Single father: 4.21 million yen/ year Both of parents: 5.63 million yen/ year The data from: Child poverty rate in OECD countries in 2008 Q. Why most of single mothers are not regular workers? There are mainly two factors. One is Japanese custom. In Japan, the social status of women isn t still high as compared with EU countries. So, it s not easy to women that to find regular working position more than men. Especially, companies mostly hesitate to employ single mothers as regular workers because single mother can t work long-hour and long-term for taking care of their children. For example, single mothers who need to pick up their children from kindergarten can t work in the evening. If their child caught a cold, they need to take a few days off. But companies don t like regular worker s absences. Therefore, if you write a word single mother in your papers to the company, employers wouldn t hire you or would hire you as irregular worker. The other is a lack of social welfare for single mother. In Europe, there are some welfare or regulations for single mother. But there are not enough in Japan. For example, Japanese companies can refuse single mother s employment. (It can t be done officially but actually there are many cases.) And also, it s not accepted receiving welfare by the reason single mother. In fact, many single mothers aren t accepted receiving welfare. If they go to the City Halls and asked officers like I can t work enough because I m single mother, I need the time taking care for my children., they would receive mostly same answer, you can work, if you put your children at a home for children whose family have troubles. That s why, there are many single mother family who don t receive welfare. Ⅴ. What are the problems? 1 Irregular workers can t be accepted receiving social insurances. As I already suggested above, companies have hired irregular workers positively in 4

5 order to slash costs. They can be easier to stop irregular worker s employment contract than regular workers. Besides, They don t need to make irregular workers carry some social insurances like unemployment insurance and health insurance. In fact, 59.5% of unemployed who had received unemployment benefits in But in 2006, the number was increased into 21.6%, because most of them didn t have even the rights to receive social insurances. Moreover 67% of people whose income is under 2 million hadn t paid national health insurance fee in It means, if they caught a cold, they might not consult a doctor. (data from ASAHI news in 2008). As you can guess from these dates, people who really need social support can t be accepted receiving social benefits although there are social insurances for relief from poverty. I argue that Japanese social support system is make-believe. It doesn t play an important role enough. 2 It s difficult to be accepted receiving welfare. The data in right side shows you the change of the number of people receiving welfare benefits. According to the Ministry of Health, Labour and Welfare, there are 2,065,896 people receiving welfare benefits September This is the highest number in the past. And the number is more increasing year by year. As to see percentage it, 42.8% is elderly people, 16.7% is people on active working and 7.5% is single-mother. At first glance, it seems to be many people receiving welfare benefits, however, in fact, there are still more people who aren t accepted them because conditions to receive them is strict and complicated. If you go to the City Hall to apply welfare benefits, you might be shut the door in your face while officers say to you like Find job and just work, or ask your relatives at first. You never be accepted them unless taking with supporter or specialist like lawyer. Look at below, and you can understand how strict and unclear conditions for receiving them. Main conditions for receiving welfare benefits You need to fill all conditions following. a. A person whose income is under the line decided by the government. (The line is different in each area where you live.) a. A person who can t work or don t have enough income for appropriate reason. b. A person who doesn t have any possession property (ex. Car, house, life insurance, much deposit etc ) c. A person who doesn t have any relatives to support you. d. A person who doesn t have enough living expenses in spite of receiving other social support like a welfare pension or unemployment insurance. 5

6 3Japanese regulation for minimum wages is wrong. The data compared monthly minimum wage with monthly allowance of welfare benefits City Minimum wage Allowance of A gap welfare benefits Tokyo 123,520 yen 163,970 yen 40,450 yen Kobe 117,760 yen 163,970 yen 46,210 yen Sendai 107,644 yen 156,590 yen 48,946 yen Naha 105,376 yen 149,200 yen 43,824 yen (From: the Ministry of Health, Labour and Welfare in 2002) As you can realize from above date, the minimum wage is lower than the allowance of welfare benefits. The allowance of welfare benefits means the minimum expense that people need to live and that the government must give people who are in poverty in order to be realized Article 25 of the Constitution; all people have the right for living humanity life. In other words, minimum wage isn t enough to live. This is big problem, and responsibility for the government. I argue that this problem is one of the big cause for Working poor. In spite of working, there are many people who can t live humanity life. 4All of us have possibility to become poverty If you are a regular worker, do you think that these situations are never related with you? The answer is No. First of all, according to the Ministry of Education, the rate of employment of graduates from university was 59.9% October As you know, just to find regular work is much difficult. Second, even if you are a regular worker, you are greatly influenced by these situations. For example, when your boss ask you overtime working, you couldn t refuse it because your boss might say to you like there are much more people who want to work instead of you. If you hear the words, you might not be able to refuse their orders. Actually, this is true thing happened in real working place. Besides, wages for overtime working aren t paid enough in many companies. That s why, even if you can get regular work position, you never feel your relief. So I suggest that nobody should think like I m OK or I never be in poverty. Neither irregular nor regular workers are saved in this situation. Regular workers are also have possibility to be in danger anytime. Ex) regular workers will be in poverty lose job or make them change to irregular worker mental or physical disease over work, pressure by superior they couldn t refuse over work because of fear regular workers give pressure because they want to be regular irregular workers 6

7 Ⅵ. How should we do for improving present situation? 1Reduce the number of irregular workers How can we it? As explanation, I ll show you EU regulation for irregular workers. In contrast to Japan, EU regulates to hire workers as irregular position. Giving some concrete examples, European companies should pay same wages for regular and irregular workers. And they should treat both of them equality, so they should make irregular workers carry social insurance, too. Besides they can t fire irregular workers unless they have appropriate reasons. By these regulations, company can t make any benefits to hire irregular worker, therefore the number of irregular workers can be controlled keeping in low. I argue that Japan also should follow the EU style to reduce irregular workers. 2Establish some supporting system for single-mother. As I already suggested above, there are locking of social supports for single-mother in Japan. We should establish some supporting system not for all poverty people but just for single-mother. I mean that especially single-mothers are needed social supports. And also our society should recognize that single-mothers are always needed social helping to independence from ex-husbands. 3 Raise minimum wages It s a governmental duty that to secure the safety and humanity our life. Therefore the government should raise minimum wages up at least same amount of money as welfare benefits. 4 Regulate over work and Protect people who can t work According to OECD date, Japan is one of the most countries where labor is working long-hour and doing over work frequently. Why are Japanese working so much? The answer is simple; if they don t over work, they would lose their job or at least wouldn t be able to live. They are forced doing over work with low salary and if they would become useless as labor like mental disease, their company fire them without waiting their recover. I argue that workers are not tool for companies. They need to be treated as human. So, we should regulate over work and protect people who can t work in order no to increase any more poverty. 5Change the conditions for receiving welfare benefits. Present conditions for receiving welfare benefits are much strict. It should be more easily to be accepted receiving them. Moreover the conditions are written unclearly now. I mean that they have wide meaning. Therefore the public officers can be easily to refuse people who need welfare benefits. So, the conditions should be written more clearly. And also, the process for receiving welfare benefits is complicated and long. Therefore there are many people who give up receiving them. That s why, the process should be remade to be more easily accessing. 7

8 Ⅶ. Conclusion We are working just for living. However, there are many people who can t live independently in spite of working. Irregular workers work with unfair low salary without raising any objections. Regular workers work with less day off not to lose their job. Don t you feel something strange in our working system? Can you guess why there are over 30,000 suicides in Japan every year, and the number has been kept for 13 years? The reason might be connected with working system deeply. Recently, Japanese economic world rank was down into 3 rd and the work force is declining cause of aging society. More and more exploit the labors. Because of such a today, we should reconsider our working system. I suggest that poverty will infect the whole society. Nobody should ignore this issue. In conclusion, I suggest one more thing; poverty is not self-responsibility. In the last a few years, the case that the son/daughter killed their aged parents, are increasing because they don t have enough money and inner reserves. In the case, generally, the son/daughter were regular workers at first. However, after their parents become to need to be took care of, they lost their jobs because they couldn t be regular attendances. In spite of working as irregular workers, their income wasn t enough to take care for their parents, nursing expenses are expensive. At the end, they decided to kill their parents and suicide. Can you believe these cases have been happened in Japan. Do you think that suicide is a matter of individual choice? And do you think that poverty is personal matter? In my opinion, poverty is not self-responsibility. I don t think that because you were idle fellows, you became poor. I suggest that everyone has possibility to become in poverty cause of social structure. If you became poverty, it s not easy to get back former life especially in Japan. We need to consider about poverty in Japan more deeply. Working poor in Japan is so serious issue now. References: Han-hinkon by Makoto Yuasa, Iwanami publisher, published in 2008 Kakusasyakai by Toshiaki Tachibanaki, Iwanami publisher, published in 2007 Working poor by NHK, NHK special program in 2008 National research in field of working by the Minister of Health, Labour and Welfare - relative poverty in OECD countries by OECD, researched in &itemid=/content/chapter/factbook en&containeritemid=/content/serial/ &accessItemIds=&mimeType=text/html Japan's relative poverty rate worsens among OECD countries by BBC news in Child poverty in OECD countries by OECD, researched in Japan s working poor hit hard by Washington Times, article in

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