TOKYO: Japan ranked 28th in labour productivity among the 38 OECD members in 2024, remaining the lowest among the Group of Seven advanced economies, amid a worker shortage and a weak yen.
Measured by the value of goods and services produced per worker per hour, Japan’s labour productivity stood at $60.1, compared with the OECD average of $79.4. Japan has seen a growing share of non-regular employees, while its purchasing power for energy and raw material imports has eroded due to the yen’s sharp depreciation, according to the Japan Productivity Centre.
“There needs to be wider use of artificial intelligence, especially in the manufacturing industry,” an official from the group said.
Among the Organisation for Economic Cooperation and Development members, Japan ranked between Portugal at $60.7 per hour and New Zealand at $59.6 per hour. Ireland ranked the highest at $164.3, while the United States was fourth at $116.5 per hour. On a real basis adjusted for price changes, the country’s productivity slipped 0.6 per cent from a year earlier, falling to 33rd place from 16th the previous year among the 38 countries.
The report comes as domestic companies have been raising wages to reflect price hikes, with firms agreeing to increases of over 5 per cent for two consecutive years in negotiations with unions, according to the Japanese Trade Union Confederation.
The focus is on whether a similar rise will continue for a third year.
The Bank of Japan has also been closely watching wage trends, citing the importance of a “positive cycle” of wage hikes and inflation.
Japan’s labour productivity ranking for 2023 was raised to 26th from 29th due to a data revision. – BERNAMA
