Changing Trends in Japan's Employment and Leisure Activities

Japan at one time was internationally renowned for its impressive economic performance following World War II. The country, with very limited natural resources, became a leading exporter of consumer and industrial goods, such as electronics, appliances, cars, cameras, and ships. In 1986, the Japanese government encouraged its citizens to travel internationally with the introduction of the Ten Million Plan, and millions chose to do so. Japan’s bubble economy eventually collapsed and the economy experienced stagnation. Now with serious demographic challenges the Japanese government is addressing these as they continue to encourage Japanese citizens to travel abroad.

There are distinct differences between the salaried workers in the West and the sarariiman in Japan. Work practices differ between the two and in the case of the sarariiman, the social status of belonging to a prestigious organization and collective effort to maintain wa or harmony in an organization appear to be of greater importance. The sarariiman’s contribution to the fast-paced growth era of the Japanese economy and the high rate of household savings in Japan during this period played a significant role in leisure-time pursuits. These factors allowed for growth of overseas travel and Japanese travelers’ consumption of goods and services of while overseas.

Postwar Japan’s economy grew rapidly and by the 1980s Japan was an economic superpower. The signing of the Plaza Accord in 1985 is credited for the beginning of Japan’s bubble economy. Japanese companies and consumers began spending large amounts of their yen on foreign properties and goods. Conspicuous consumption ran rampant with the strong yen, cheap credit, and loose monetary policy. This all came to an end with the stock market and real estate markets crashing by the end of 1990, leading to years of economic doldrums now often referred to as Japan’s Lost Decades.

The sarariiman, as we knew him from postwar Japan, is becoming a thing of the past. The company man is being replaced by a host of nonregular employees to help Japanese corporations adjust to the prevailing and forecasted economic conditions. The full-time keiyakushain (contract worker), as well as part-time workers are now growing in numbers in Japan’s organizations, creating challenges not only for human resource professionals, but also for policy makers that are faced with growing numbers of dissatisfied workers struggling with lower wages and nonstable employment.

Postwar Japan was busy rebuilding her economy prior to the years leading up to the Tokyo Olympiad. Tokyo had won the Olympic bid in 1959 and Japan became the first Asian country to host an Olympic Games, bringing significant pride to the Japanese. The Tokyo Olympics in 1964 served to bring Japan closer to international society and signaled the end of Japan’s postwar hardships. Overseas travel was soon liberalized and Japanese tourists began traveling in large numbers, growing businesses like Duty Free Shoppers that capitalized on the overseas consumption habits of the Japanese traveler.

The term OL is often used in Japan to refer to a woman who is single, young, and does clerical work as a full-time worker. OLs are considered a desirable market for retailers because they tend to have large amounts of disposable income to spend on personal goods, such as clothing, accessories, handbags, and cosmetics. While gender roles in the workplace are gradually changing with women given more rights in the workplace, there are still countless workplaces that remain where OLs typically serve tea to men and type and file their reports. In many cases, OLs are exempt from secure employment and have few opportunities for promotion. Japan’s OLs played a significant role in the growth of Japanese overseas travel, especially with businesses selling luxury brand goods.

The sarariimanas the self-sacrificing organization man was an inspiration to Japanese males in the past. However, today’s young workers appear to value a more meaningful work life and development of occupational ability than what the sarariiman’s life offered. Because of the competitive nature of the global economy, changes in remuneration systems and career progression based on performance rather than seniority has been gradually introduced in some Japanese organizations. The shift to pay for performance over seniority is still in the process of making its way into other organizations. Japan’s household saving rates declined in recent years and turned negative by 2013, while consumers transformed from conspicuous consumers during the bubble period to become more frugal in their spending.

The Japanese economy will most likely continue to remain strong in the coming decades, and a strong Japanese economy will allow for the growth and maintenance of leisure time for its citizens. There has been an effort by the Japanese government to encourage the expansion of two-way tourism between Japan and the world under the auspices of the Tourism Nation Promotion Basic Law with targets for both inbound and outbound tourists. Reasons for traveling have evolved over the years and conditions are becoming more favorable with the availability of mass transportation, more opportunities for leisure time pursuits, and the affordability of long-distance travel. Japanese luxury retail continues to be strong but brands must continue to work with Japanese consumers to justify their purchases.

Japanese travel habits and attitudes toward travel have been changing and fragmenting over the years. Group travel and fast tourism were prevalent in the early years, but today’s Japanese travelers seem to prefer a slower tourism with the intent of creating memorable experiences rather than simply visiting various tourism sites and purchasing souvenirs. Attention to special interest tourism (SIT) is increasing for tourists who enjoy specific types of activities, hobbies, or educational opportunities in either a domestic or overseas environment. Active tourism with objectives such as enjoying a hobby while on vacation is now being pursued as opposed to simply gazing and moving on.

With the introduction of the Ten Million Plan, the Japanese government encouraged its citizens to travel overseas with the goal of reaching 10 million outbound travelers by the year 1990. The intent was partially to offset Japan’s trade imbalance during the 1980s. The plan was successful with the stronger yen and Japanese travelers’ propensity to buy duty-free products and omiyage. However, this negative balance shifted to a surplus in 2015 for the first time in 55 years, with overseas visitors to Japan spending more money than Japanese abroad. The strengthening of economies throughout other countries in the Asia Pacific region have changed the make up of overseas visitors to destinations in the region that previously saw mainly Japanese tourists. Still, Japan has continued to consistently produce relatively high numbers of overseas travelers but DMOs and other tourism organizations must monitor visitor perceptions by market and implement sound strategies in order to continue satisfying various markets’ needs and expectations.

Although countries like China are now showing tremendous growth in outbound travelers, the Japan market is still among the largest markets traveling outside of Asia and therefore should not be overlooked. Because of the country’s lead in the world in terms of demographic, economic and sociological evolution, the country provides an interesting benchmark for mature economies and can help domestic and overseas retailers like fashion and luxury brands learn from studying this market. In addition, with the changing attitudes of workers in Japan, overseas travel destinations can capitalize on opportunities relating to the workers’ desire for personal development. Companies in almost all industries should also take note that Japan’s “silver” or senior market is not only the country’s fastest growing consumer segment but that it can also become a highly profitable one if approached appropriately.