Japan is said to be a country with low labor productivity. GDP per capita is often used as an indicator of labor productivity, but according to the IMF, Japan’s nominal GDP per capita in 2023 will be $33,950, ranking 34th in the world. It is the lowest among the G7. Looking at this alone, Japan is like a poor country. On the other hand, in recent years, an increasing number of experts, mainly in the United States, have questioned the usefulness of GDP and GDP per capita. This is because GDP is the value of goods and services, and people who are no longer in the labor force do not contribute to GDP.

In a world where aging is progressing, with Japan at the forefront, more and more people are leaving the labor force, especially retired elderly people. In other words, both GDP and GDP per capita will fall rapidly. In short, the whole world will become like Japan.

In the United States, instead of GDP and GDP per capita, attention is being paid to “GDP per working-age population” or “hourly labor productivity.”

What’s interesting is that, when you look at GDP per working-age person, Japan has suddenly become one of the world’s fastest-growing nations. There is also data showing that the growth rate of labor productivity per hour is also among the world’s top. What we can glimpse from this is that Japan is not a country with low labor productivity. If I had to say, it is a country where the productivity of workers is very high, but the number of people leaving the labor force due to aging and other factors is increasing.

Japan just happens to be the first in the world to experience a low birth rate and aging population, but in the future, countries around the world, especially developed countries, will become “Japanized.” Currently, Japanization is seen as a derogatory term with a hint of contempt, but in the near future, the world will have no choice but to look at Japan in a new light and take a closer look. The day is approaching when we will offer the world the wisdom and know-how we have acquired through the struggles of the “lost 30 years.”

Of course, I do not intend to conclude that Japan is safe from this. The drastic decline in the working-age population is a vital issue. Personally, I think that overcoming this with amazing digital transformation is the Japanese way… (Kei Kitajima)

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