Japan’s Pioneering Initiative: Embracing a Four-Day Workweek to Tackle the Labor Shortage

Introduction: A Nation’s Work Ethic in Transition

Renowned for its rigorous work culture, Japan is embarking on a bold experiment to address its growing labor shortage by encouraging more businesses to adopt a four-day workweek. This initiative is not just about reducing hours but also about rethinking the deep-seated work habits that have long defined the nation’s approach to labor, potentially bringing about a more balanced and productive work environment.

The Government’s Active Role in Promoting Change

The Japanese government’s support for a shorter working week began in 2021, marking a significant shift in its labor policy. However, the uptake has been slow. According to the Ministry of Health, Labor, and Welfare, only about 8% of companies in Japan allow employees to take three or more days off per week, while 7% offer the legally mandated one day off.

To increase adoption, particularly among small and medium-sized enterprises, the government has launched a comprehensive “work style reform” campaign. This campaign promotes shorter working hours, flexible arrangements, overtime limits, and paid annual leave. The labor ministry has also offered free consulting, grants, and a growing library of success stories to motivate businesses to embrace these changes, ensuring that everyone is well-informed about the current policies.

“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 every worker to have a better outlook for the future,” states a ministry website about the “hatarakikata kaikaku” campaign, which translates to “innovating how we work.”

Challenges and Slow Adoption

Despite these efforts, adoption still needs to grow. Only three companies have requested advice on transitioning to a four-day workweek, highlighting the challenges the initiative faces. Even at Panasonic Holdings Corp., where 63,000 employees are eligible for four-day schedules, only 150 have opted for it, according to Yohei Mori, who oversees the initiative at one of Panasonic’s companies.

Cultural Shift: From Workaholic Stoicism to Work-Life Balance

The government’s endorsement of better work-life balance represents a marked change in Japan, where a culture of workaholic stoicism has long been credited for the national recovery and economic growth post-World War II. In Japan, conformity and the pressure to sacrifice for one’s company are deeply ingrained. Many workers take vacations only during nationally recognized holidays like the Bon holidays in summer and New Year’s, ensuring they do not appear neglectful or uncaring.

Long working hours are still the norm, even though 85% of employers report giving their workers two days off a week, and there are legal restrictions on overtime hours. Some workers engage in “service overtime,” which is unreported and unpaid.

A recent government white paper on “karoshi,” the term for “death from overwork,” revealed that Japan sees at least 54 such fatalities a year, including from heart attacks.

The Role of Work in Japanese Society

According to Tim Craig, author of Cool Japan: Case Studies from Japan’s Cultural and Creative Industries, Japan’s “serious, conscientious, and hard-working” people value their relationships with colleagues and form strong bonds with their companies. He notes that work is more than just a means to make money in Japan; it is a significant part of one’s identity and social life.

Addressing the Labor Shortage and Declining Birth Rate

Some officials believe changing the mindset around work is crucial to maintaining a viable workforce amid Japan’s declining birth rate. The country’s job-focused culture is partly blamed for the declining birth rate, with the working-age population expected to drop 40% to 45 million people by 2065, from the current 74 million, according to government data.

Proponents of the four-day workweek argue that it encourages people raising children, caring for older relatives, retirees, and others seeking flexibility or additional income to remain in the workforce longer.

Examples of Companies Adopting the Four-Day Workweek

Take Akiko Yokohama, for instance, who works at Spelldata, a small Tokyo-based technology company. She enjoys the flexibility of a four-day workweek, taking Wednesdays off along with Saturdays and Sundays. This schedule allows her to handle personal errands, attend appointments, and reduce stress. Her real estate broker husband also enjoys a similar midweek break, allowing the family to spend quality time together. These personal stories help us connect with the real people benefiting from this initiative.

Significant companies like Fast Retailing Co., Shionogi & Co., Ricoh Co., and Hitachi have also introduced four-day workweeks, with some traction even in the finance industry. For instance, SMBC Nikko Securities Inc. began offering a four-day workweek in 2020. Mizuho Financial Group provides a three-day schedule option.

Criticism and Signs of Change

Critics argue that, in practice, employees on four-day schedules may end up working just as hard for less pay. However, change is on the horizon. A Gallup survey measuring employee engagement ranked Japan among the countries with the least engaged workers, with only 6% of respondents describing themselves as engaged at work, compared to a global average of 23%.

Kanako Ogino, president of Tokyo-based NS Group, believes offering flexible hours is essential for filling jobs, especially in the service industry, where women make up most of the workforce. The company offers 30 different scheduling patterns, including a four-day workweek, to accommodate individual needs, which Ogino surveys twice a year.

Conclusion: A Nation at a Crossroads

As Japan grapples with its labor shortage and declining birth rate, the push for a four-day workweek represents a significant cultural shift. While adoption has been slow, the government’s support and the growing recognition of the need for work-life balance suggest that Japan is at a crossroads. Whether this experiment will succeed in transforming the nation’s work culture remains to be seen, but the signs of change are becoming more apparent.