The government launched the “hatarakikata kaikaku” or “work style reform” campaign to promote shorter work hours and flexible arrangements. This initiative aims to create a better work-life balance, offering free consulting, grants, and success stories to motivate businesses, especially small and medium-sized ones, to make changes. The labor ministry’s website states, “By realizing a society in which workers can choose from a variety of working styles based on their circumstances, we aim to create a virtuous cycle of growth and distribution and enable each and every worker to have a better outlook for the future.”
The Japanese government first expressed support for a shorter working week in 2021, after lawmakers endorsed the idea. The concept has been slow to catch on, however; about 8% of companies in Japan allow employees to take three or more days off per week, while 7% give their workers the legally mandated one day off, according to the govt’s data.
However, the department overseeing the new support services for businesses has reported that only three companies have sought advice on making changes so far, highlighting the challenges the campaign faces. Among Panasonic Holdings Corp.’s 63,000 employees in Japan, only 150 have opted for four-day schedules, despite the availability, according to Yohei Mori, who oversees the initiative at one of Panasonic’s companies.
Japan’s official endorsement of better work-life balance marks a significant shift in a country where the workaholic mentality has been credited for post-World War II economic recovery. The societal pressure to conform adds to the challenge, as many citizens take vacations simultaneously to avoid being seen as neglectful by colleagues. Despite legal restrictions on overtime and provisions for two days off a week reported by 85% of employers, some workers still engage in “service overtime,” unreported and unpaid extra work hours. A recent government white paper reported at least 54 fatalities a year due to “karoshi,” meaning “death from overwork,” which includes cases of heart attacks.
With Japan’s birth rate declining, some officials argue that changing the work-focused mindset is crucial to maintaining a viable workforce. Government data predicts a 40% decline in the working-age population, from 74 million currently to 45 million by 2065, attributed partly to the job-centric culture. Advocates of the three-days-off model believe it supports those raising children, caring for older relatives, retirees, and others looking for flexibility to stay longer in the workforce.Several large companies in Japan, including Fast Retailing Co., the owner of Uniqlo, Theory, and other brands, along with Shionogi & Co., Ricoh Co., and Hitachi, have also adopted the four-day workweek in recent years. Even the finance industry has shown interest, with SMBC Nikko Securities Inc. allowing four-day schedules since 2020 and Mizuho Financial Group offering a three-day schedule option.Critics argue that workers on four-day schedules often end up working just as hard for less pay. Yet, signs of change are emerging. A Gallup survey on employee engagement ranked Japan low, with only 6% of respondents describing themselves as engaged at work compared to the global average of 23%, indicating that many Japanese workers lack passion and energy for their jobs.
Kanako Ogino, president of Tokyo-based NS Group, sees flexible hours as essential for filling service industry roles, predominantly held by women. Her company, which operates karaoke venues and hotels, offers 30 different scheduling patterns, including a four-day workweek, and allows long periods off between work. Ogino ensures that none of her 4,000 employees feel penalized for choosing alternative schedules by asking them twice a year how they prefer to work. She emphasized, “The view in Japan was: You are cool the more hours you work, putting in free overtime. But there is no dream in such a life.”
With AP Inputs