Title
Author(s)
Citation
Issue Date
Type
An Analysis of Employment Structure in Japan
Umemura, Mataji
Hitotsubashi Journal of Economics, 2(2): 16-29
1962-03
Departmental Bulletin Paper
Text Version publisher
URL
http://hdl.handle.net/10086/8114
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Hitotsubashi University Repository
AN ANALYSIS OF EMPLOYMENT STRUCTURE IN JAPAN
By MATAJI UMEMURA
Assistant Professor , Institute of Econonlic Research
I Introduction
In Japan, the unemployment rate, which is defined as the proportion of the number of
totally unemployed to the total number in the labour force, has fluctuated within a very
narrow range during the period since 1953. The unemployment rate was relatively high in the
period of 1955 to 1956 when the Japanese economy was prosperous, while it was relatively
low in the period of 1957 to 1958 when a tight money policy was enforced. In addition the
level of unemployment (at its maximum) was only 1.6 per cent of the total labour force.
However, it has been reasonably pointed out that the unemployment rate must be re-computed
by dividing the number of totally unemployed by the number of paid employees instead of
by the total labour force, since there are a large number of self-employed and unpaid family
workers who are seldom unemployed, in the Japanese labour force. Even if the unemployment rate were re-calculated in the way thus far suggested, the unemployment rate would
still be only 4.2 per cent at its maximum. This is below the rate usually considered as the
upper limit of frictional unemployment.
At first glance, these figures seem to suggest that the Japanese economy always enjoys
{ull employment during economic fluctuations. But this conclusion is not realistic. The wide
wage differentials for production workers in manufacturing given in Table 2 clearly show
that the real situation in the Japanese labour market is far from that of full employment
,equilibrium and that mass under-employment prevails.l
These somewhat peculiar features of the labour market situation, i.e., of the structure of
employment, in Japan is properly described as "zenbu koyo" (disguised full employment) by
S. Tobata.2 Disguised full employment is defined as the situation in which all persons wanting and seeking jobs are employed but their wages and other working conditions are very
much differentiated. Disguised full employment thus far defined s qurte d fferent from "full
,employment" because of the coexistence of wide wage differentials, and is also different from
the usual less-then-full employment situation because the unemployment rate is within the
range of frictional unemployment.
Thus, our problem is twofold, if the disguised full employment is to be fully explained.
Firstly, we must analyse the factors which are infiuential in keeping the unemployment rate
1 See K. Ohkawa, "The Differential Employment Structure of Japan" The Annals of The Hitotsubashi
Academy Vol. IX No. 2, April 1959 and R. Hotani and T. Hayashi, "The Evolution of Wage Structure in
Japan". Itidustrial and Labor Relations Review Vol. 15 No. l, Oct. 1961.
2 S. Tobata, "Nogyo Jinko no Kyo to Asu" (Retrospect and Perspective of Agricultural Population)
in Arisawa, Uno and Sakisaka ed.. Sekai Keizai to 1¥Tihon Keizai (World Economy and Japanese Economy) Tokyo, 1956.
AN ANALYSIS OF EhIPLOYMENT STRUCTURE IN JAPAN
17
Table I U,1employment Rate, 1953-1960
thousand
Bureau of Statistics, Monthly Labottr Force Survey.
Figures refer to population of 15 years old and over.
Source :
Remarks :
Table 2 Monthly Earnings of Production Workers by Size ofFirm and Sex, 1954
Size of Firm
Male
Female
Total
15 , 206 (Ye*)
6, 707 (Ye*)
lOOO and over
19, 179
8, 349
500-999
100-499
30- 99
16 , 855
6, 955
14 , 264
6, 241
12, 167
5 , 629
10- _99
10 , 302
5 , 203
Source: Department of Labour, Survey of Wage Structul
Remarks: Bonus and other extra pay are excluded.
for 1954.
within the range of frictional unemployment, and the mechanism through which disguised full
'employment is maintained. Secondly, the factors and mechanism which are responsible for
-the wage differentials must be clarified. This paper is devoted to an analysis of the first
problem mentioned above, that is to say, an analysis of the reason the unemployment rate
'in the Japanese labour market is low and does not show appreciable fiuctuations during the
,business cycle.3
II Supply of Labour
Growth of Total Population
The amount of labour available for production of goods and services is determined by
=a large variety of demographic, economic and social factors, the most important of which
are those associated with the size and structure of the population. Therefore, it is quite
reasonable to deal with the growth of the population at first as the basic determinant of the
s An aiternative approach to the same problem is Economic Research Institute, Economic Planning
Agency (Japan), E,np!oy'nent Slructure and Business Fluctuations, Economic Bulletin No. 2, July 1959
*(Tokyo).
18 HITOTSUBASHI JOURNAL OF EcoN'oMlcs [March
labour supply.
In Table 3, the figures of total population and its growth are arranged. The total population increased rapidly from 55 million in 19-90 to 93 million in 1960, a 38 million (69 per
cent) increase over the 40 year period. The average quinquennial rate of growth ranged
from 1.1 per cent in the 1040-45 period to 15.2 per cent in 1945-50. Excluding the period'
1935-50, during which the disturbance stemming from World Tar 11 vras sizeable, the
average quinquennial rate of growth of total population was around 7 per cent for the
period up to 1955 and has subsequently dropped to about 5 per cent.
One of the most remarkable effects of the war appeared in the migration figures, v;'hich
includes not only' civilians but members of the armed forces. The emigration increased
sharply during the war period and in 1945 the number of members of the armed forces
abroad amounted to 3.4 million. Just after the war net immigration showed a high level
owing to repatriation and almost cancelled out the big emigration during the war period_
The accumulated number of repatriated persons up to the end of 1953 was 6.3 million, half
of whom were civilians and the other half soldiers. It goes without saying that these repatriates made a big contribution to the rapid increase of labour supply in the post World
War 11 period.
We will turn to discuss the change in the birth and death rates and the rate of natural
increase of population. According to the vital statistics given in Table 4, the live-birth rate
Table 3 Total Population and Its Growth, 19,]-O-1960
thousands
Populatlon
Rate of
Quinquennial Increase
Total
Total
Natural
Growth
Soclal
(%)
3 , 788
3 , 888
1930
63 , 872
4 , 693
4 , 677
1935
68, 662
4 , 790
4 , 863
1940
71 , 400
2 , 738
4, 274
1945
72 , 200
800
4. 009
lq_ 50
83 , 200
11 , OOO
6 , 699
4 , 969
lc]_ 55
89 , 276
6 , 076
5 , 888
49
1960
93 , 347
4 , 071
n.a.
n,a.
8
52
7.
59, 179
8
199_5
6.
1920
55, 391
9
7. 5
4.
O
1
-3, 234
1.
-
- 72
15. 2
7.
3
4.
6
Source: Census of Population.
reached its peak in 1920 and then gradually declined during the inter-war period. The low
level of _9.9 per cent in 1940 was exceptional because of the war mobilization. Just after the
war, Japan had a baby boom, which reflected itself in a high birth rate in 1947. Therefore,
the exceptionally low level of birth rates during the var period Tvas almost cancelled out by
the exceptionally high level of birth rates during the baby boom period. When the baby
boom was over, the long-run trend of the declining birth rate reappeared with a more reinarkable tempo than ever. The birth rate was 2.8 per cent in 1950 and only 1.8 in 1958.
This marked decline in the birth rate can be attributed to the surprisingly rapid spread of
birth control and abortion practices within a relatively short time. In the pre-World War ll
1962] AN Ar ]'ALYSls OF EMPLOYMENT STRUCTURE: IN JAPAN 19
period, in Japan, birth control had been practised only within a small circle of urban,
educated people and had even been considered as immoral by most of the public. The
sjtuation has drastically changed since the end of the war, and birth control has become
L Prevailing practice of the urban residents in general and even in part of the rural sector.
This is one of the most dramatic changes of the Japanese social life in the post-war period.
As for the death rate, it has continued to fall from the 2 per cent level in 1920's to 0.7
per cent in 1958 without any interruption. The decline of the death rate has been accelerated
since 1947 by the improvement of public sanitation and the introduction 0L more efficient
medicir es. The rate of natural increase of population remained constant at l.4 per cent
level during the inter-war period, and was abruptly increased to about the 2 per cent level
in 1947 by the baby boom, and then fell drastically to 1.1 per cent in 1958. According to
expert estimates, it is expected that the rate of natural increase of population
vill arrive at
a very low level of some 0.7 per cent in a near future. However, as far as absolute numbers
are concerned, the rate of increase was still at the high level of 1.2 million per annum in
1955, compared to a low level of less than one million in the inter-war period.
Table 4 Rates of Live-birth, Death and Natural Increase
per thousand
Source: Ministry of Welfare. Vital Statistics.
Remark: The figure marked# does not include deaths in war.
Since our problem is the analysis of labour supply, what is relevant to us is the working age population rather than the total population. In Table 5, we arrange the number of
population 14 years old and over, which is considered to be an approximation of real working age population. The average annual increase of population 14 years old and over was,
1:oughly speaking, around 600 thousands during the inter-war period and increased to the 1.1
million level in the post-war period. And it is estimated that it will reach the 1.6 million
level in 1960's. In spite of the rapid expansion of economic activity, this rapid growth of
population seeking jobs suggests an increasing burden on the national economy and the
growing necessity of adquate economic and social policies.
Changes of the Labour Force Participation Rate
The figures for the economical]y active population 14 years old arid over are given in
20 HITOTSUBASHI JOURNAL OF ECONolt(Ics [March
Table 5 with the corresponding figures of the working age population. The economically
active population increased by 74 per cent from 26 million in 1920 to some 44 million in
1960, while the working age population increased by 80 per cent during the same period.
The proportion of economically active population to working age population, hereafter called
the participation rate, gradually declined from 70 per cent in 1920 to 67 per cent in 1960.
The spread of education, the extension of school attending, the early retirement of aged
Table 5 Total and Economically Active Population,1
Total Population
1920
26, 195 (tho*sand)
70. 2 (per cent)
1930
1940 (a
41 , 861
28 , 875
69.
46 , 345
31,946
68.
46 , 800
32 , 400
69.
48 , 178
31 , 502
65.
49 , 500
32 , eoo
66 .
1950
55 , 584
36, 347
65.
1955 (a)
61,2CO
39, 991
65.
59 , 476
39 , 261
66.
65, 324
43 , 691
66.
1920
18 , 104
16 , 488
91. 6
1930
21,016
18 , 705
89. O
1940 (a
22, 222
19 , 503
87, 8
(b)*
22 , 700
20 , OOO
88, l
1944 (a)'
22 , 066
18 , 308
82. 9
(b)*
23 , 400
19, OOO
83. 8
19SO
26 , 785
22, 365
83. 5
1955 (a)
29, 575
24 , 425
82. 6
28, 682
23 , 893
83. 3
31 , 550
26, 609
84. 3
1960'
9
(b)'
3 O
1960'
4
(b)'
4 3
(b)*
2
1944 (a
Female
to Col. (2)
36, 246 (thousa*d)
(b)'
1 4lale
Proportion o Co
O 9
Both Sexes
conomica y ctive
Po pulation
1
14 Years Old and Over, 1920-1960
1920
18 , 142
9 , 708
53. 6
1930
20 , 845
lO , 170
48, 9
1940 (a)'
24 , 124
12 , 443
51, 6
1944 (a)'
26, I12
13, 194
50, 5
1950
28 , 799
13 , 982
48. 6
1955 (a)
31 , 686
15, 566
49, l
30, 795
15, 368
49. 9
33, 774
17 , 081
50. 6
(b)'
1960'
Source: Census of Population.
Remarks: l. Economically active population is gainfully occupied persons for the period 1920
through 1944, and is labour force for the years of 1950, 1955 and 1900. Excluding Okinawa.
2. Excluding foreigners and persons in the armed forces.
3. Excluding foreigners but including the estimated number of members of armed force$
in Japan proper.
4. Population 15 years old and over.
1962] AN ANALYSIS OF EMPLOYMENT STRUCTURE IN JAPAN 21
Table 6 The Average Annual Growth of Economically Active Population, 1920-1960
nnua
ncrease o
Annual IncreaseEconomically
of proportion
of Col. (2)
Active
Population 14 Years population 14 Years to Col. (1)
Old and Over old and Over
Remark: For 1940 and 1944, the figures adjusted for the armed forces in Japan proper are
used.
For 1955-1960, the figures for 15 years old and over are use -
workers, the changes of industrial structure, and the progress of urbanization are generally
recognized to be the main factors contributing to the declining tendency of the participation
rate over the long stretch of time. As for the male population, the same story can be
applied, while the participation rate of female population does not show any appreciable
long-run trend but does show cyclical changes. The dlfference of behaviour of participatiorL
rate between the sexes seems to suggest a need of further analysis.
As a device to emphasize the change in the participation rate, we derived the proportioll
of annual increase of economically active population to that of total population 14 years old
and over, which proportion is given in Table 6. It can be called the incremental participation rate or the marginal participation rate. As for both sexes combined, it rose from 48.
per cent in the decade of 1920-30 to 71 per cent during the next decade and dropped to a
very low level of only 15 per cent for the period 1940-44. Then, it continuously rose and
arrived at the levels of 58, 64 and 76 per cent in the periods 1944-50, 1950-55, and 195560respectively. However, if we exclude the figure for 1944 by considering the abnormal situation in that year and compare the figure for 1940 to that of 1950, the incremental partici-
22
HITOTSUBASHI JOURNAL OF ECONOMICS
[March
pation rate shows a regular wave-like movement, Such a cyclical movement was more clear
in the case of female population, while it was relatively stable in the case of male population
except for both a somewhat low figure in the period of 1940-50 and a very much high one
in the period of 1955-60.
According -to these observations, the following conclusion may be reasonable: The participation rate of the male population is declining in the long-run but seems not to be as
sensitive to short-run economic changes, while the female participation rate has no appreciable long-run trend but is strongly affected by current economic conditioris. This conclusion
may be consistent with the findings by P.H. Douglas and C.D. Long that the income elasticity of supply of labour is low for the male population and is high for the female one.d
Now we will take the age element into consideration. The male participation rate has
its peak in the middle age group, and the inter-age group differentials 0L the participation
rate remain stable. The participation rate of males 25 through 49 years old is quite stab]e
Table 7 Participation Rate by Sex and Age Group, 1920-1960
per cent
Age group
1 950
1955
1960
1.
O.
O.
8
1
2
72. 7
70. 4
51. 3
52. 9
44. 9
51. 62
93. 7
91. 8
91. 4
88. 2
90. O
88. 1
87. 9
96. O
95. 1
96. 2
97. O
97. 9
97. 7
96. 9
97. 1
97. 7
98. O
97. 5
97. 7
98. O
97. 1
97 2
97. 4
96. O
93. 8
93. 3
95. 3
92. 3
93. 5
93 4
75. 3
71. 5
70. 9
68. 1
65. 4
66. 2
65. 1
49. 72
6
2
o
4. 6
1,
96. 5
98. 1
O.
96. 7
1.
97. 1
98. 1
7
13 and under
19441
78. 7
2.
Female
19401
6
60 and over
1930
l.
14-19
20-24
25-29
30-39
40-49
50-59
4
13 and under
3.
Male
1920
14=19
20-24
66. 9
58. 6
61. 2
51. O
46. 8
41. 5
59. 6
53. 7
59. 2
68. 9
64. 1
68. 2
69 4
9 5-29
53. 4
46. 5
46. 5
47. O
48. 2
51. 8
50. l
30-39
40-49
50-59
54. 8
50. 2
50. 5
47. 6
eo. 1
51. 3
53 1
56. 4
53. 6
57. 3
54. 7
53. l
55. O
56. 7
50. 3
48. 2
54. 7
55. 3
48. 3
48. 8
46. 8
60 and over
28. 2
24. 2
31. l
30. 7
27, 2
26. 3
26. 9
Source : Census of Populction
Remark: 1. For 1940 and 1944, the unadjusted figures for the armed forces in Japan proper
are used.
2. Figures for 15 years old and over are used.
at a level of some 97 ptr cent, while those of males 24 years old and under and 60 years
,old and over show marked falling trends. As for males 50 to 59 years old, it is also stable
.at a level of 93 per cent except for somewhat higher figures both in 1920 and in 1944.
Thus, there are remarkable drfferences in the long-run trend of participation rate among the
age groups, but any appreciable cyclical movement is not apparent.
4 P.H. Douglas, The Theory of Wages, 1934 (New York) Chapter ll: C.D. Long The Labor Force
Imder Changing Inco'ne and E,nploy,nent, 1958 (Priceton) Chapter 4.
1969_] A) ' ANALYSIS OF EhdPLOYMENT STRUCTURE IN JAPAN 23
The female participation rate has twin peaks, the first of which appears in the youth
group and the second of which is in the 40 to 49 years old group. The frst peak has
shifted from the 14 to 19 years old group to the 20 to 24 years old group, and the level of
the second peak changes cyclically. The behaviour of the participation rate dlffers from one
age group to another. The participation rate of females 20 to -']4 years o]d increased, while
that of females 14 to 19 years old decreased very much. For the other age groups, no appreciable long-run trend of participation rate can be identified, but their cyclical movement
is more pronounced in the older group than in the younger group. The effect of mobilization during the war period on the behaviour of the participation rate differed from one age
group to another. As for females 20 to 2-4 years old and 50 years old and over, the rise in
the participation rate during the war period was remarkable, while the participation rates of
the three age groups 25-29, 30-39 and 40-49 years old never reflected such a rise and in-
deed sometimes decreased. '
From these observations, we can derive the following conclusion: The cyclical movement
of the female participation rate has played a very important cushioning function in the labour
market, and is believed to be influential iri maintaining so-called disguised full employment
in the Japanese economy.
III Changes of Employlnent
Changes of Employment by Industry
The second factor of the cushioning functions in the Japanese labour market can be
sought in the different behavior of employment among industries. The annual rate of
change of economically active population by industry is given in Table 8-A, B, and C.
The economically active population in primary industry, which consists of agriculture,
forestry, and fishery, decreased during the war period after a slight increase during the
decade 1920 to 1930. The marked decrease of male workers owing to the large scale
mobilization was partly offset by the increase in the number of female workers. During the
period of 1945-47, we had a surprising increase of employment in primary industry caused
by war damage and the subsequent food shortage. However, as the economic recovery went
on, employment in the primary industry rapidly decreased. The decrease of employment in
agriculture especially has been accelerated.
As for secondary industry which consists of mining, construction and manufacture, the
inverse movement of employment was remarkable throughout the entire period. It was
much greater for male workers than for female workers. However, employment in mining
has continued to decrease since 1944, mainly because of the progress in the substitution of
oil consumption for coal consumption in recent years.
The movement of employment in tertiary industry was somewhat complicated. It decreased during the period 1940 through 1947, and increased very much during the 1920's
and since 1947, though the tempo of increase was somewhat retarded. However, if we exclude the armed forces from the figure of tertiary industry, the magnitude of decline of
employment during the period of 1940 to 1944 will become larger, and the decrease of employment during the next period will change to an increase in employment. Thus, the in-
24 HITOTSUBASHI JOURNAL OF ECONOMICS [Mardr
dustrial distribution of economically active population was very much affected by tbe war
mobilization and the subsequent war destruction.
Having these pictures as a background, we may turn to a chronological analysis of the
changes in employment. For the decade 199-0-30, 86 per cent of the total increase of employment was the increase of male workers, a half of which increase occured in commerce-
Table 8-A Changes of Economically Acti.ve Population Per
Annum by Industry, 1920-1960
Both Sexes thousands
1950-55
195 OO
-64. 5
1, 172. 3
-334. 8
21. 7
20. 2
-13. O
-21. 5
85. 7
3
- 73.
8. 3
-
-238. 2
31. o
4. 8
-55. 2
l, 2SO. O
-201. 3
-210. 2
47. 2
-39. O
-25. 3
-11. 6
-O. 4
Construction
0. 5
- 26.
O
18. 5
89. 3
70. 3
56. 4
184. O
Manufacture
26. 3
313. 2
-886, 3
83. 3
257. O
518. 6
Sub Total
41. 7
379. 2
-836. O
128. 3
301. 8
702. 2
Commerce
146. 3
-5eo. 7
118. 3
616. 3
290. 4
279. 4
37. 3
49. 2
34. 8
-20. 3
34. O
43. 2
77. 4
l. 6
Agriculture
-O. 2
3.
5
Mining
6.
Trans portation
Communication &
63. 5
15. 6
3
-
2
Finance
2. 7
I
Sub Total
-9. 3
8
Forestry
Fishery
7.
1947-50
1.
1944-47
1940-44
1920-30
-5. 2
-353. O
Public Utilities
Service
52. 7
83. 5
34. 3
133. 3
264. 4
149. 6
Public Service
15. 4
336. 2
-516. O
153. 7
0. O
-5. 8
-
Sub Total
236. 4
111. 4
-277. 2
-382. 3
974. O
637. 6
535. 2
Total
237. 5
338. 9
24. 7
166. 7
765. 7
722. 2
886. o
Source: Ce'Isus of Population
Remarks: (1) In the enumeration of censuses for 1920 to 1947, the concept of gainfully
occupied population is used, and in that for 1950, 1955 and 1960 the concept of labour force
is employed.
(9_) The figures for 19-90 to 1940 include all the gainfully occupied popuiation regardless of its age.
(3) The figures for 1940 and 1944 exclude all the foreigners but include the estimate
of the number of armed forces in Japan proper into the figures for public service. The
number of armed forces thus far included are estimated to be 500,000 for 1940 and 1,300,000
for 1944.
(4) The figures for 1944 include the gainfully occupied population 6-9 years old and
over, for which occupational attachment is not surveyed, and the number of which is 1,610,000
for male and 943,000 for female. These are a]located to industries by assuming the same
percentage by sex as the industrial distribution of employed persons 60 years old and over
in 1950.
(5) The figures for 1947 refer to persons 10 years old and over, those for 1950 and
1955 refer to persons 14 years old and over, and those for 1955 and 1960 refer to persons
15 years old and over.
AN ANALYSIS OF EMPLOYMENT STRUCTURE IN JAPAN
1962]
25;'
Table 8-B Changes of Economically Active Population Per
Annum by Industry, 1920-1955
thousand
Male
- 38 .
203 .
3
8
6
145.
19.
O
o
62 .
69 .
140.
-9.
537. 3
343. o
O.
2
3
3
126.
8 6
o
7
3
7
6
3
8.
- 30.
158.
34.
33.
14.
472.
33.
24 .
o
O
324 .
7
3
- 66.
163.
-494.
297.
3
o
-43.
3 23 .
2
58. 7
4
leo.
-O.
149.
6
20. 3
o
51.
8
3
8.
52. 7
o
3
-14. 3
- 27 .
4
-86. O
-12.
-8.
O
-7.
- 07 .
o
1.0
o
7.
o
-138.
-17. 3
4
-69. 3
o
3
34. 1
3
32 .
7
10 .
8.
2
172. 5
184.
5
14.
-431.
-21.
32 .
5 3
Pubiic Service
92 .
8
32 .
5 o
Service
-649.
288.
o
5.
9
15.
12.
Public Utilities
Sub Total
-29.
6
5.
Communication &
l07.
7
Finance
Transportation
3
Commerce
7
242.
o
192.
11.
-31.
88 .
5
Sub Total
979 .
7
168.
24.
80 .
7
-1.
Manuf acture
6
Construction
33 .
4
25.
Mining
-222.
7
-
873.
o
5
Sub Total
7
Fishery
-25.
2
8
-3.
23.
o
9.
Forestry
-219.
7
4
- 19.
Agriculture
297. 8
Source and Remark: See Table 8 A
The increase of employment in services was completely equal to those in construction and
manufacture combined. The employment of male workers in manufacturing increased a
little, while that of female workers decreased. And employment in primary industry remained almost stable. Since agriculture, commerce and services have been the three biggest
reservoirs of the so-called reserve army of labour, the pattern of change of employment observed in this decade is properly considered to be a consequence of the fact that the growth
of employment opportunity for the increasing population seeking jobs was not sufficient to
prevent a further accumulation of the reserve army. It is generally believed that wage
differentials between small and big businesses began to increase during this period, though
sufEcient evidences to support this hypothesis have not yet been found.
In the next decade, the situation was entirely reversed. Two-thirds of the increase of
employment in this period was that of female workers, a halL of which was devoted to offsetting the decrease of male employment in agriculture and commerce. The increase of em-
ployment of both male and female workers in manufacturing was notable. For the period
of 1940-44, the same tendency developed further with a marked decrease in employment of
both sexes in commerce and services and a large increase of employment in public service.
most of which, of course, was the increase of the armed forces. Owing to the large scale
mobilization, the labour market became so tight that the accumulated reserve army was
gradually siplloned out and a full employment situation was finally reached under the quite
26
HITOTSUBASHI JOURNAL OF ECONOMICS
Table
8-C
[March
Changes of Economically Active Population . Per
Annu7n by Industry, 1920-1955
Fernale
2.
O
o
O.
- 26.
8
-O.
8
6
o
6
35.
O
o
4.
8
2 8
-3.
- 27 .
63 .
97.
195.
69. 3
98. 2
230, o
15.
133.
4
6
131 .
e
8
292.
7
15.
9.
-O.
79.
-6.
4
138.
4
13.
4 8
3
ll8.
15. 4
2
o. 7
7
-21.
-72. 2
o
145. O
- 28 .
3
o o
216. 9
18.
12.
3
31. 7
-11.
- 00.
15.
12.
7
-111. 5
Total
- 15.
7
77. 4
3
7.
63. 9
o o
1
39. o
7
-28. 3
3
-40. 2
o
o
6.
o
8.
5
7,
1.
4
32.
7
2
-66.
o
5.
7
5.
3
30. 5
o
6.
7
- 43.
- 49.
o
5
91. O
26.
o
7
3.
50. 1
Sub Total
Source and Remark :
-7.
- 04 .
0 .
300. 7
-237.
7
20 .
-3.
70.
2
Public Service
13.
9 98.
46 ,
Public Utilities
Service
7
1.
5
2. 7
o
4
o.
Transportation,
Communication &
1.
39.
3
5
Commerce
4
- 7.
8
Sub Total
Finance
5
-12.
o
Manufacture
167. O
1
O.
O
-5.
Construction
155.
8.
83. 8
1
Mining
-.
O.
3. 4
Sub Total
81.
1.
Fishery
2.
6
Forestry
o
Agriculture
thousand
-251. 7
437, o
294. 4
237. 4
- 68.
349. 3
318, 2
342. 6
3
See Table 8-A.
abnormal conditions.
For the period 1944-47, the accumulation of the reserve army developed again owing
to war destruction and the mass repatriation. The increase of employment was entirely
concentrated in the industries in which a relatively small amount of investment was required
for expanding employment, that is to say in which the marginal capital intensity was small.
The most remarkable increase of employment occured in agriculture, and the largest decrease
of employment occured in manufacturing and public service. Male employment in commerce
and services increased very greatly, while female employment in these industries decreased.
The decrease of female workers in large parts of the industries other than agriculture in
this period may be partly attributed to the voluntary retirement of female workers who were,
in some sense, obliged to have jobs under the emergency conditions and partly to the involuntary retirement of female workers forced by the demobilization of male workers.
During the next three periods, employment markedly decreased in agriculture and rapidly
increased in manufacture, commerce and services. However, the pattern of increase in employment by industry differs from one period to another and the separate treatment of these
three period is necessary. For the period 1947-50, when the Japanese economy still re-
mained abnormal, 80 per cent of the total increase of employment occured in commerce
and, if commerce and services are combined together, the coresponding percentage rises to
98lper cent. Employment in agriculture decreased, while that in manufacture increased
1962] AN ANALYSIS OF EMPLOYMENT STRUCTURE IN JAPAN 27
s]ightly. This behaviour of employment suggests that the accumulated reserve army of
labour gradually shifted from agriculture to commerce and services in the urban districts.
During the period 1950-55, when the rehabilitation process of the Japanese economy was
almost completed, the increase of employment in manufacturing was very much accelerated
but that in commerce and services was still dominant. For the years 1955-60, the most
prosperous period of the Japanese economy, the same tendency developed further with a
more favourable pattern of growth in employment. The increase of employment in manufacturing and the decrease of employment in agriculture were accelerated very much, while
the increase of employment in commerce and services was retarded.
As a result of these changes in employment, the share of each industry in total employ-
ment cllanged very much, as shown in Table 9. When we compare the industrial distribution of employment in 1920 with that in 1960, we can find a large decline of the proportion
of employment in primary industry, especially in agriculture, and appreciable rise in secondary
and tertiary industries. And it is interesting to see the similarities in the industrial distribu-
tion 0L employment between 19_･O and 1947.
From the above observations, the following conclusion may be reasonable: When the
economy is prosperous and employment increases sufiiciently, the employment in three biggest reservoir industries, agriculture, commerce and services, expands slightly and sometimes
rather decreases. In contrast to this, when the economy is in slump and the growth of employment remains insufficient, employment in the reservoir industries grows remarkably and
absorbs the unemployed. This mechanism provides the second type cushioning function in
the Japanese labour market.
Table 9 Industrial Distribution of Econolnically Active Population. 1920-1955
Both Sexes per cent
30 .
O
l.
5
1.
41. l
2
l.
32. 8
1.
6.
2
6
3
2
1.
4
l.
o
2.
7
o
3.
1
3.
o
3
1.
3.
3
7
l.
2.
7
2.
48. 3
38.
3 8
53. 4
O
42. 3
l.
43. 4
1.
1
3
49. 3
45.
2 9
1.
4
l.
l.
2.
2
9
49 .
2
39.
6
o.
8
40 .
9
O.
6 9
46.
8
8
1.
Construction
53. 6
6
Mining
2.
Sub Total
o.
o
Fishery
50 .
7
Forestry
9
Agriculture
16.
16.
17.
21.
Sub Total
20. 8
20. 4
25. 6
29. 9
22. 3
22. o
23. 8
29. 1
11.
13.
5.
8
2
11.
o
4
29. 7
11.
5
2
23. o
l.
27. 6
3.
30. 2
9
2.
8.
7.
5.
6
8
4
3.
6
8.
O
1
5.
5
1
5.
15.
7 8
8
O
8
6.
o.
7.
4
8-A.
8.
See Tabie
30. o
8
Source and Remarks :
23. 9
3
4.
6.
6
Sub Total
2
2.
o.
o
2.
5
2
7.
Public Service
7
8.
4
O.
Public Utilities
Service
9
4.
4
12_
o
5
O.
2
Communication &
14.
7
5
Transportation,
o
9.
8
o.
7
5
Commerce
Finance
4.
8
24.
o
20.
5
16.
9
4.
16.
o
4.
Manuf acture
3.
3.
35. 2
38. O
28 HITOTSUBASHI JOURNAL OF EcoNoMICS [March
Changes of Employment by Class of Worker
An analysis of the distribution of persons employed by class of worker may be useful
in supplementing the above discussion, because the proportion of the number of employees
to tota] employment is believed to be a good index of the degree of development of a capitalistic economy. For example, in around 1950, the proportion of employees to the total
employment was 91 per cent in the United Kingdom and 71 per cent in West Germany,
while it was only a little less than 40 per cent in Japan.
In Table 10, the percentage distribution of the change of employment by class of worker
during the period of 1920 to 1960 is given. The share of employees increased from 57 per
cent in the 1920's to 138 per cent in the 1930's, fell to a very low level of only 14 per cent
in the 1940's, and again rose to 106 per cent and 125 per cent level during the periods of
1950-55 and 1955-60 respectively. The share of self-employed and unpaid family workers
moved in the opposite direction. And it must be noted that the change of share of employees is positively correlated with the change of the incremental participation rate discussed
in Section II, and negatively correlated with the change of growth of employment in the
three biggest reservoir industries.
Table 10 Distribution of Changes of Number of Persons E,nployed
by Class of Workers, 1920-1960
per cent
Employee
Both Sexes
11. 1
31. 6
138. 5
-39. 5
1.0
14. O
25. 7
60. 3
106. O
1.5
-7. 5
124. 8
7. 5
-32. 3
32. 5
18. 3
49. 2
ll5. 8
1
Fe m ale
Unpaid Family Worker
57. 3
O.
Male
-15. 9
-8. 3
-23. O
-22. 7
40. 3
82. 4
32. 2
6
114. 6
1
93. 2
3.
131. 3
3.
1920-30
1930-40
1940-50
19SO-55
1955-60
1940-50
1950-55
1955-60
1940-50
1950-55
1955-60
Self -Employed
-46. 8
Sources: The figures for 1940, 1950, 1955 and 1960 are taken from Census of Population, and
the figures for 1920 and 1930 are the estimate by Tadao Ishizaki based on Census of
Populatio .
According to these observations we can conclude that the increase in the number of
paid employees, which reflects the increase of demand for labour by the capitalistic sector
(if the economy, is met by the rise in the incremental participation rate, which means the
increase of supply of labour as a whole, and the decrease, at least in a relative sense, of
self-employed and unpaid family workers, showing the changes in jobs of persons formerly
employed in the non-capitalistic sector, and vice versa. This mechanism in the labour
market contributes greatly to maintaining disguised full employment in the Japanese economy
through the cushioning functions of the marginal labour and of the employment in the non-
AN ANALYSIS OF EM. PLOYMENT STRUCTURE IN JAPAN
1962]
._q.
Table 11 Wage Dtfferentials between Agriculture and Manufacturing
Female
Male
(1)
(2)
(3)
70 .
93
O. 42
73.
O1
O. 98
77 .
12
1. 02
72 .
89
O. 75
47.
19
O. 72
53 .
93.
O
118.
6
116.
3
102.
4
92 .
4
19_6 .
4
17
O. 91
O. 30
3
O. 69
64
95.
100.
O
2.
67 .
O
53
90
1. 21
55
O. 24
7
2.
43
74 .
4
1. 14
94 . l (･'"')
O. 20
6
55
78. 1 (%)
(4)
2
O.
(6)
O. 17 (Yen)
1
68
O. 43
(5)
32_ (Yen)
1
O. 28
Female
3
1.
45
(2) t4)
3
1. O.
37
O. 24
(1) (3)
4
l.
32
O. 19
O.
O.
O. 16 (Yen)
O.
O.
25 (Yen)
O.
O.
O.
O.
O.
241. OO
189. 40
623 . 52 *
269. 22*
38 .
70 .
320. 50
255. 25
84 1 .
12*
349 . 84*
38.
73.
O
1895-99
1900-04
1905-09
1910-14
1915-19
1920-24
192 9-g
1930-34
1935-39
19SO-54
1955-58
Male
/
Manufacture
Agriculture
Differentials
/
Wage
Daily Wage Rate
Source: M. Umemura. Chingin, Koyo, Nogyo. (Wage, Employment and Agriculture), 1961 (Tokyo) pp. 193-4.
Remarks: Figures marked* are average daily earnings.
･capitalistic sector. However, it is needless to say that the mechanism can not proceed without costs. The changes in the size of the reserve army in the reservoir industries is reflected
in the cyclical flucuations of wage differentials between agriculture and manufacturing, as
,seen in Table 11.
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