Japan Targets Labor Shortages by Considering 4-Day Workweeks

Japan is grappling with a significant labor shortage and is now promoting the adoption of four-day workweeks as a potential solution. Known for its intense work culture, the nation has a term that literally translates to “working oneself to death,” highlighting the urgent need to reform its labor practices.

The government first supported the idea of a shorter workweek in 2021 after lawmakers endorsed it. However, progress has been sluggish. Currently, only about 8 percent of companies offer their employees the option for three or more days off per week, while merely 7 percent adhere to the legal requirement for one mandatory day off, as reported by Japan’s Ministry of Health, Labor and Welfare.

In an effort to encourage more businesses, particularly small and medium-sized enterprises, to consider the four-day workweek, the government has launched a “work style reform” initiative. This campaign promotes shorter hours and flexible work arrangements, along with implementing limits on overtime and encouraging paid leave. Recently, the labor ministry has begun providing free consulting, grants, and success stories to motivate participation.

The ministry outlines its vision on its platform, stating, “We aim to create a virtuous cycle of growth and distribution and enable each worker to have a brighter outlook for the future,” through its campaign termed “hatarakikata kaikaku,” which translates to “innovating how we work.”

Despite this initiative, the response from companies has been tepid. Only three companies have sought guidance on how to implement these changes, reflecting the considerable hurdles this initiative may face.

One notable example is Panasonic Holdings Corp., which allows around 63,000 eligible employees to opt for a four-day workweek. However, only 150 have chosen this schedule, a figure shared by Yohei Mori, who manages the initiative within one of Panasonic’s branches.

This push for a better work-life balance marks a significant shift in Japan, a country historically known for its workaholic culture, which some attribute to its post-World War II economic recovery and growth.

In Japan, there is immense social pressure to prioritize company loyalty over personal needs. Employees often take vacations collectively during the Bon holidays or around New Year’s to avoid being seen as neglectful or uncommitted.

Long working hours are commonplace. Although 85 percent of employers provide two days off weekly and overtime regulations exist, there are cases of “service overtime,” which goes unreported and unpaid.

A recent government report on “karoshi,” or death from overwork, estimated that Japan experiences at least 54 such fatalities annually, with many resulting from heart attacks.

Japanese culture places great value on workplace relationships, as noted by Tim Craig, a cultural expert. He emphasizes that work serves not only as a source of income but also as a vital part of social identity.

Shifting this mindset is deemed crucial for maintaining a sustainable workforce, especially given Japan’s declining birth rates. Projections indicate that the working-age population could shrink by 40 percent by 2065, diminishing from 74 million to approximately 45 million.

Advocates of the four-day workweek model argue that it could help people balancing child-rearing, elder care, and other personal responsibilities to stay in the workforce longer. Akiko Yokohama, an employee at a tech firm that adopts this schedule, finds her day off beneficial for attending personal appointments and managing stress.

Yokohama’s husband also benefits from flexible work arrangements, allowing the couple to enjoy midweek family outings with their child.

Prominent companies like Fast Retailing Co., known for the Uniqlo brand, and several electronics and pharmaceutical firms are now implementing similar four-day options. Even the finance sector is embracing this change, with brokerage SMBC Nikko Securities offering a condensed workweek since 2020.

However, there are critics of this initiative, arguing that employees working reduced hours often end up maintaining the same workload for lower pay.

Nevertheless, indications of change are emerging. A recent Gallup survey revealed that Japan has one of the lowest employee engagement rates globally, with only 6 percent of workers feeling engaged compared to a global average of 23 percent. Many are merely completing their hours without any real investment or enthusiasm.

Kanako Ogino, president of NS Group, believes that offering flexible schedules is vital for attracting talent within the service industry, where many employees are women. The company provides a variety of scheduling options, including long breaks between shifts, allowing employees to voice their scheduling preferences without fear of repercussions.

Ogino elegantly pointed out that the old mindset, where long working hours were seen as virtuous, is outdated. “There is no dream in such a life,” she remarked, signaling a changing cultural landscape.