Forget what you’ve heard about Japan
By International Adviser, 28 Aug 18
It’s not just another false dawn in the land of the rising sun, argues Rathbones’ Ed Smith
Click through the slides below to find out why
Abe’s “three arrows” strategy was always, and still is, a revolution in the Japanese mindset.
It has taken time, but the Japanese Parliament recently passed labour reform that caps overtime hours for workers.
It seems counterintuitive, but restricting overtime aims to improve the country’s productivity. About 8% of Japanese workers work more than 60 hours each week, compared with the OECD average of 5.1%.
Employees were rewarded on the hours they put in, not necessarily for the work they did. Abe (and logic) says it would be better if workers were judged on the quality of their output instead.
Chart 3: Percentage working 60+ hours per week (source: OECD Employment Database, 2016)
Tags: Investment Strategy | Japan | Rathbones
