67.8 million: Japan's labour force hits new high in 2024

Women, senior workers driving growth in Japan's employment

67.8 million: Japan's labour force hits new high in 2024

The number of employed people in Japan hit a record 67.8 million in 2024, driven strongly by an increase of senior and female workers, according to reports.

Data from Japan's Ministry of Internal Affairs and Communication revealed a 340,000 increase in employed workers in 2024 to hit the country's highest labour force figure since 1953.

The labour force covers employees who are aged 15 and older, who are working or temporarily on leave from their current jobs, Nippon reported.

According to the reported labour force data, employed men remained higher in comparison to women, but the latter saw a more significant increase.

The number of employed men reached 36.99 million, up by 30,000 from the previous year. On the other hand, the number of employed women went up by 310,000 to reach 30.82 million female workers in the past year.

Senior workers rising in Japan

By age group, the report found that an increasing number of older workers compensated for the decline in younger employees in Japan.

The report found that employment among those under 60 peaked in the 1990s and has since declined, while those over 60 have increased.

The report noted that this trend will "inevitably shape the composition of the workforce in the next five to 10 years," a warning that previous research has pointed out in relation to Japan's ageing population.

Independent think tank Recruit Works Institute published in 2023 a report that warned Japan's working age population is expected to rapidly decline from 2027, with worker supply to shrink by about 12% in 2040 from 2022, The Japan Times reported.

Labour shortage still present

However, the record number of individuals in the labour force does not resolve Japan's labour shortage, according to the Nippon report.

It noted that while more women and seniors joined the workforce, many of them opted for part-time rather than full-time employment. This meant that in terms of hours worked, the total labour input has not increased significantly.

"As a result, labour shortages remain unresolved," the Nippon report noted. "With the challenges of an aging and shrinking population becoming a long-term issue, securing a sufficient workforce remains a pressing concern for Japan."