Japan’s Labor Productivity Remains Low

Japan ranks twenty-ninth for labor productivity among the 38 nations of the Organization for Economic Cooperation and Development, according to the Japan Productivity Center’s International Comparison of Labor Productivity report. The country’s hourly labor productivity was $56.80 in 2023. It rose two places compared to 2022, when it was hampered by a slow recovery from the COVID-19 pandemic; the return to normal economic conditions brought a rise in the growth rate, and the increase in yen-based prices also contributed to its improved position. However, hourly productivity was almost $100 lower than the top-ranked Ireland ($154.90), and less than half of that for Norway and Luxembourg, in second and third place, respectively.

Labor productivity indicates the total value of products and services that can be provided by one worker in an hour, thus reflecting the efficiency of working conditions.

Japan was thirty-second among OECD countries for annual labor productivity per person, at $92,663.

Since 1970, Japan has remained at the bottom of the productivity ranking for Group of Seven nations, and is now at a level of productivity just 58.1% that of the top-ranked United States, where hourly productivity stands at $97.70. In 2000, Japan’s productivity was around 70% that of the United States, but the level then slipped to around 65% in 2010 and to below 60% in recent years.

(Translated from Japanese. Banner photo © Pixta.)