Japan Press Weekly

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2013 July 3 - 9 TOP3 [ECONOMY]

Abenomics decreases jobs and income

The number of employees in 58.5% of Japan’s major electrical equipment and car-related makers has decreased, showing that Abenomics has no effect on job creation.

According to a survey Tokyo Shoko Research (TSR), a private credit research firm, released on July 8, the total number of employees in 198 listed electric- and car-related manufacturers was reduced by 5,319 to 814,362 at the end of March 2013. Of the 198, 116 substantially slashed their payrolls.

The depreciation of the yen led by Prime Minister Abe’s easy-money policy has brought about benefits to the export industry but has not benefited the domestic job market, according to the TSR survey.

Meanwhile, data the ministry of labor and welfare published on July 4 show that 19.9% of all households in Japan earned no more than two million yen in 2011, up from 13.6% in 1992. In particular, the ratio of households living on less than one million yen a year increased from 4.5% to 6.9%.

The ministry data revealed that the median household income in Japan dropped sharply from 5.49 million yen to 4.32 million yen during the same period of time.

Roughly, one out of every five households is currently forced to make ends meet with an annual income of less than two million yen.

Akahata reported that the planned increase in the consumption tax rate and the planned cutbacks in social welfare programs under Abenomics will further reduce the income of ordinary people.