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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Japan ranks No.2 in poverty rate among OECD countries

The Organization for Economic Co-operation and Development (OECD) on July 20 published its economic survey on Japan, which shows that Japan ranks second among OECD countries in its relative poverty rate.

This relative poverty rate is expressed as percentage of the working-age population (18-65 years old) with a disposable income below one-half of the median.

Japan's poverty rate is 13.5 percent, close to the 13.7 percent of the No.1 country, the United States. Ireland whose poverty rate is 11.9 percent ranks third.

In the mid-1990s Japan's rate was 11.9 percent. This shows that under the structural reform policy promoted by successive Liberal Democratic Party governments the income disparity of Japan has increased.

The OECD report also revealed that Japan's absolute poverty rate rose by 5 points between the mid-1980s and 2000, stating, "Japan was the only member country to experience a rise in absolute poverty."

Pointing out that the key factor in the increasing disparity is the dualism of the labor market caused by the increase of non-regular workers, the report recommends that Japan reverse the trend toward labor market dualism.
- Akahata, July 21, 2006