STATISTICAL HANDBOOK OF

JAPAN

2013
 © 2013 by Statistics Bureau
Ministry of Internal Affairs and Communications
Japan
All rights reserved.

Edited and Published by

Statistics Bureau
Ministry of Internal Affairs and Communications
Japan
19-1 Wakamatsu-cho, Shinjuku-ku
Tokyo 162-8668 Japan

Printed in Japan
ISSN 0081-4792

http://www.stat.go.jp/english/data/handbook/index.htm
 Preface

This handbook is designed to provide a clear and coherent

overview of present-day Japan through statistics.
It provides statistical tables, figures, maps and photographs to
portray conditions in modern-day Japan from a variety of
perspectives, including demographics, economic and social trends,
and culture. Most of the comments and statistical data for this
purpose have been drawn from principal statistical publications
available from government and other leading sources.
For more in-depth statistical information on Japan, readers are
invited to peruse the Japan Statistical Yearbook.
We hope that this booklet will serve as a guide in your search for
knowledge about Japan. We are always happy to receive opinions
or requests from readers.
You can also view the contents of this booklet on the website of
the Statistics Bureau.

September 2013

Masahiko SUE
Director-General
Statistics Bureau
Ministry of Internal Affairs
and Communications
Japan
 Notes for Users

1. The present issue contains statistics that became available by June 30, 2013.
2. Unless otherwise indicated, "year" refers to the calendar year and "fiscal year"
refers to the 12 months beginning April 1 of the year stated.
3. Metric units are used in all tables and figures in which the data are measured in
weight, volume, length or area.
4. Unless otherwise indicated, amounts shown are in Japanese yen. Refer to
Appendix 3 for exchange rates of JPY per U.S. dollar.
5. Statistical figures may not add up to the totals due to rounding.
6. "Billion" means a thousand million; "trillion" means a thousand billion.
7. The following symbols are used in the tables:
･･･ Data not available

− Magnitude zero or figures not applicable

0 or 0.0 Less than half of unit employed

＃ Marked break in series

＊ Provisional or estimate

8. Data relating to "China" generally exclude those for Hong Kong SAR, Macao
SAR and Taiwan.
9. All contents of the present issue, including tables, figures, and maps, are also
available on the website:
http://www.stat.go.jp/english/data/handbook/index.htm
10. When any contents of the present issue are to be quoted or copied in other media
(print or electronic), the title is to be referred to as follows:
Source: Statistical Handbook of Japan 2013, Statistics Bureau, Ministry of
Internal Affairs and Communications, Japan.
 Contents

Chapter 1 Land and Climate .......................................................................... 1

1. Land .............................................................................................................. 2
2. Climate .......................................................................................................... 4
＊ The Great East Japan Earthquake ............................................................... 7

Chapter 2 Population ....................................................................................... 9

1. Total Population ......................................................................................... 10
2. Households ................................................................................................. 12
(1) Household Size and Household Composition .................................... 12
(2) Elderly Households .............................................................................. 14
3. Declining Birth Rate and Aging Population ............................................. 15
4. Births and Deaths ....................................................................................... 17
5. Marriages and Divorces ............................................................................. 20
6. Population Density and Regional Distribution ......................................... 21
(1) Population Density ............................................................................... 21
(2) Population Distribution ........................................................................ 23

Chapter 3 Economy ........................................................................................ 24

1. Economic Development ............................................................................ 25
2. Bubble Economy and Its Collapse ............................................................ 26
3. Recent Economic Trends ........................................................................... 29
4. Industrial Structure ..................................................................................... 31

Chapter 4 Finance .......................................................................................... 37

1. National and Local Government Finance ................................................. 38
(1) National Government Finance ............................................................ 38
(2) Local Government Finance ................................................................. 41
(3) National and Local Government Finance ........................................... 43
(4) Tax ......................................................................................................... 46
2. Bank of Japan and Money Stock .............................................................. 47
3. Financial Institutions .................................................................................. 49
4. Financial Assets .......................................................................................... 51
5. Stock Market .............................................................................................. 52
Chapter 5 Agriculture, Forestry and Fisheries .......................................... 55
1. Overview of Agriculture, Forestry and Fisheries ..................................... 56
2. Agriculture .................................................................................................. 56
(1) Agricultural Production ........................................................................ 56
(2) Farmers and Farmland ......................................................................... 58
3. Forestry ....................................................................................................... 59
4. Fisheries ...................................................................................................... 61
(1) Fishery Production ............................................................................... 61
(2) Fishery Workers ................................................................................... 62
5. Self-Sufficiency in Food ............................................................................ 63

Chapter 6 Manufacturing and Construction ............................................. 66

1. Overview of the Manufacturing Sector .................................................... 67
2. Principal Industries in the Manufacturing Sector ..................................... 71
(1) Machinery Industry .............................................................................. 72
(2) Chemical Industry ................................................................................ 73
(3) Iron and Steel Industry ......................................................................... 74
(4) Fabricated Metal Products Industry .................................................... 75
3. Construction ............................................................................................... 75

Chapter 7 Energy ............................................................................................ 78

1. Supply and Demand .................................................................................. 79
2. Electric Power ............................................................................................ 83
3. Gas .............................................................................................................. 84

Chapter 8 Science and Technology/Information and Communication .. 85

1. Science and Technology ............................................................................ 86
(1) Researchers and R&D Expenditures .................................................. 86
(2) Technology Trade ................................................................................. 88
2. Patents ......................................................................................................... 91
3. Information and Communication .............................................................. 93
(1) Diffusion of the Internet ....................................................................... 93
(2) Progress of Communication Technologies ......................................... 94
(3) Telephone .............................................................................................. 95
(4) Postal Service ....................................................................................... 97
Chapter 9 Transport ....................................................................................... 98
1. Domestic Transport .................................................................................... 99
(1) Domestic Passenger Transport .......................................................... 100
(2) Domestic Freight Transport ............................................................... 102
2. International Transport ............................................................................. 103
(1) International Passenger Transport ..................................................... 103
(2) International Freight Transport .......................................................... 105

Chapter 10 Commerce ................................................................................. 107

1. Wholesale and Retail ............................................................................... 108
(1) Wholesale Trade ................................................................................. 108
(2) Retail Trade ......................................................................................... 109
2. Eating and Drinking Places ..................................................................... 109

Chapter 11 Trade, International Balance of Payments, and

International Cooperation ......................................................................... 110
1. Trade ..........................................................................................................111
(1) Overview of Trade ..............................................................................111
(2) Trade by Commodity ......................................................................... 112
(3) Trade by Country/Region .................................................................. 116
2. International Balance of Payments ......................................................... 119
3. International Cooperation ........................................................................ 121

Chapter 12 Labor ......................................................................................... 126

1. Labor Force .............................................................................................. 127
2. Employment ............................................................................................. 129
(1) Employment by Industry ................................................................... 129
(2) Employment by Occupation .............................................................. 133
(3) Employment by Employment Pattern .............................................. 134
3. Unemployment ......................................................................................... 136
4. Hours of Work and Wages ....................................................................... 139

Chapter 13 Family Budgets and Prices ..................................................... 142

1. Family Budgets ........................................................................................ 143
(1) Income and Expenditure .................................................................... 143
(2) Savings and Debts .............................................................................. 149
 2. Prices ......................................................................................................... 150
(1) Consumer Price Index (CPI) ............................................................. 151
(2) Corporate Goods and Services Price Indices .................................... 153

Chapter 14 Environment and Life ............................................................. 155

1. Environmental Issues ............................................................................... 156
2. Housing ..................................................................................................... 159
3. Traffic Accidents ...................................................................................... 162
4. Crime ........................................................................................................ 162

Chapter 15 Social Security, Health Care, and Public Hygiene .............. 164
1. Social Security .......................................................................................... 165
2. Health Care and Public Hygiene ............................................................. 168

Chapter 16 Education and Culture ........................................................... 173

1. School-Based Education .......................................................................... 174
2. Lifelong Learning .................................................................................... 178
3. Leisure Activities ..................................................................................... 179
4. Publishing and Mass Media .................................................................... 181
5. Cultural Assets .......................................................................................... 185

Chapter 17 Government System ................................................................ 188

1. Division of Powers ................................................................................... 189
2. The Legislative Branch ............................................................................ 191
3. The Executive Branch .............................................................................. 192
4. The Judicial Branch ................................................................................. 193
5. Local Governments .................................................................................. 194

Appendices
1. Population, Surface Area and Population Density by Prefecture .......... 196
2. Main Economic Indicators of Selected Countries ................................. 197
3. Foreign Exchange Rates .......................................................................... 201
4. Conversion Factors .................................................................................. 201
List of Tables

1.1 Surface Area of Japan ........................................................................ 2

1.2 Top 10 Countries According to Surface Area ................................... 2
1.3 Mountains ........................................................................................... 3
1.4 Rivers .................................................................................................. 3
1.5 Lakes ................................................................................................... 3
1.6 Surface Area by Use .......................................................................... 4
1.7 Temperature and Precipitation ........................................................... 6

2.1 Countries with a Large Population .................................................. 10

2.2 Trends in Population ........................................................................ 12
2.3 Households and Household Members ............................................ 13
2.4 Trends in Elderly Households ......................................................... 14
2.5 Age Structure of Population by Country ........................................ 16
2.6 Vital Statistics ................................................................................... 18
2.7 Changes of Mothers' Age at Childbirth .......................................... 19
2.8 Mean Age of First Marriage ............................................................ 21
2.9 Population of Major Cities .............................................................. 23
2.10 Population of Three Major Metropolitan Areas ............................. 23

3.1 Gross Domestic Product (Expenditure approach) .......................... 30

3.2 Changes in Industrial Structure ....................................................... 32
3.3 Number of Establishments and Persons Engaged .......................... 34

4.1 Revenue and Expenditure of National Government Finance ........ 39

4.2 Expenditure of General Account ..................................................... 40
4.3 Local Government Finance ............................................................. 42
4.4 Expenditures of National and Local Governments ........................ 43
4.5 Currency in Circulation ................................................................... 48
4.6 Money Stock .................................................................................... 48
4.7 Financial Markets ............................................................................. 49
4.8 Number of Financial Institutions ..................................................... 50
4.9 Financial Assets and Liabilities of Japan ........................................ 52
4.10 Stock Prices ...................................................................................... 54
 5.1 Agricultural, Forestry and Fisheries Output ................................... 56
5.2 Agricultural Production ................................................................... 57
5.3 Production Volumes of Meat, Milk and Eggs ................................ 57
5.4 Commercial Farm Households and Commercial Farmers ............ 58
5.5 Forest Land Area and Forest Resources ......................................... 59
5.6 Production by Fishery Type and Species ........................................ 62
5.7 Number of Enterprises and Workers Engaged
in the Marine Fishery/Aquaculture Industry ................................ 63
5.8 Supply of Cereal Grains .................................................................. 64

6.1 Number of Establishments, Persons Engaged and Value of

Manufactured Goods Shipments of the Manufacturing Industry.. 68
6.2 Indices on Mining and Manufacturing ........................................... 69
6.3 Indices of Industrial Production ...................................................... 70
6.4 Steel Production ............................................................................... 75
6.5 Construction Investment .................................................................. 76

7.1 Trends in Total Primary Energy Supply and Percentage

by Energy Source ........................................................................... 81
7.2 Trends in Electricity Output and Power Consumption .................. 83
7.3 Trends in Production and Purchases, and Sales of Gas ................. 84

8.1 Trends in Research and Development ............................................ 86

8.2 Technology Trade by Business Enterprises .................................... 89
8.3 Patents ............................................................................................... 91
8.4 PCT International Applications by Country of Origin ................... 91
8.5 Telecommunications Services ......................................................... 96
8.6 Postal Services .................................................................................. 97

9.1 Domestic Passenger Transport ...................................................... 100

9.2 Number of Motor Vehicles Owned ............................................... 102
9.3 Domestic Freight Transport ........................................................... 103
9.4 Japanese Travelers .......................................................................... 104
9.5 Foreign Visitors .............................................................................. 105
9.6 Seaborne Foreign Transport .......................................................... 106

10.1 Establishments and Persons Engaged

in the Wholesale and Retail Sector ............................................. 108
10.2 Eating and Drinking Places ............................................................. 109
11.1 Trends in Foreign Trade and Indices of Trade ............................... 112
11.2 Value of Exports and Imports, by Principal Commodity .............. 114
11.3 Trends in Exports and Imports by Country/Region ....................... 116
11.4 International Balance of Payments ................................................. 119
11.5 Trends in Japan's Foreign Assets and Liabilities ........................... 120
11.6 Reserve Assets ................................................................................. 120
11.7 Net Flow of Development Cooperation ......................................... 122
11.8 Regional Distribution of Bilateral ODA ......................................... 124
11.9 Number of Persons Involved in Technical Cooperation
by Type ......................................................................................... 125

12.1 Population by Labor Force Status .................................................. 128

12.2 Employment by Industry ................................................................ 131
12.3 Employment by Occupation ........................................................... 133
12.4 Employment by Employment Pattern ............................................ 135
12.5 Hours of Work and Wages .............................................................. 140

13.1 Average Monthly Income and Expenditures ................................. 144

13.2 Average Monthly Consumption Expenditures of One-Person
Households by Age Group .......................................................... 149
13.3 Average Amount of Savings and Debts ......................................... 149
13.4 Amount of Savings and Debts by Age Group
of Household Head ...................................................................... 150
13.5 CPI for Major Categories of Goods and Services ......................... 151
13.6 Corporate Goods and Services Price Indices ................................. 154

14.1 Breakdown of Carbon Dioxide Emissions in Japan ...................... 156

14.2 Waste Generation and Disposal ...................................................... 158
14.3 Housing Conditions ......................................................................... 160
14.4 Occupied Dwellings by Type of Building ..................................... 160
14.5 Traffic Accidents and Casualties .................................................... 162
14.6 Trends in Crime ............................................................................... 163

15.1 Trends in Social Security Benefit Expenditures

by Institutional Scheme ............................................................... 166
15.2 Social Welfare Institutions .............................................................. 168
15.3 Number of Medical Personnel at Work .......................................... 170
15.4 Number of Medical Care Institutions and Beds ............................ 171
 16.1 Educational Institutions in Japan .................................................... 174
16.2 Number of University Students ...................................................... 176
16.3 Social Education Facilities .............................................................. 178
16.4 Sports Facilities ............................................................................... 178
16.5 Major Leisure Activities by Gender ............................................... 179
16.6 Number of New Publications ......................................................... 182
16.7 Advertising Expenditures by Medium ........................................... 184
16.8 Cultural Properties Designated by the National Government ...... 185
16.9 Heritage Sites Inscribed on the World Heritage List ..................... 187

17.1 Number of the Diet Members by Political Group ......................... 192

17.2 Successive Prime Ministers ............................................................ 193
17.3 Judicial Cases Newly Commenced, Terminated or Pending ........ 194

List of Figures

1.1 Famous Mountains of the World ....................................................... 3

1.2 Temperature and Precipitation ........................................................... 5

2.1 Population Pyramid .......................................................................... 10

2.2 Population Density by Country ........................................................11
2.3 Changes in Household Composition .............................................. 13
2.4 Changes in the Population Pyramid ................................................ 15
2.5 Proportion of Elderly Population by Country ................................ 16
2.6 Natural Population Change................................................................ 17
2.7 Life Expectancy at Birth by Country .............................................. 20
2.8 Changes in Marriage Rate and Divorce Rate ................................. 21
2.9 Population Density by Prefecture ................................................... 22

3.1 Economic Growth Rates .................................................................. 25

3.2 National Wealth ................................................................................ 27
3.3 Gross Domestic Product .................................................................. 28
3.4 Economic Growth Rates (Quarterly changes) ............................... 31
3.5 Gross Domestic Product by Type of Economic Activity ............... 33
3.6 Shares of Establishments and Persons Engaged
by Scale of Operation ..................................................................... 33
3.7 Ratio of Overseas Production in the Manufacturing Sector .......... 35
4.1 Composition of Revenue and Expenditure of
General Account Budget ................................................................ 41
4.2 Trends in Ratio of Net Total National and Local Expenditures
by Function ..................................................................................... 44
4.3 Trends in National Government Bond Issue .................................. 45
4.4 Ratio of General Government Gross Debt to GDP ........................ 46
4.5 Ratio of Taxation Burden to National Income by Country ........... 47
4.6 Trends in Stock Price Index and Total Market Value ..................... 53

5.1 Industrial Wood Supply and Self-Sufficiency Rate ....................... 60

5.2 Production by Type of Fishery ........................................................ 61
5.3 Self-Sufficiency Rates for Selected Categories
of Agricultural Produce .................................................................. 64
5.4 Trends in Food Self-Sufficiency Rates of Major Countries .......... 65

6.1 Composition of Establishments, Persons Engaged and Value of

Manufactured Goods Shipments by Sector .................................. 67
6.2 Trends in Indices on Mining and Manufacturing ........................... 71
6.3 Crude Steel Production in Selected Countries ................................ 74
6.4 Building Construction Started by Use Objective ........................... 77

7.1 Total Primary Energy Supply .......................................................... 80

7.2 Trends in Final Energy Consumption by Sector ............................ 81
7.3 Consumption of Commercial Energy by Country ......................... 82
7.4 International Comparison of Energy/GDP Ratio ........................... 82

8.1 R&D Expenditures by Selected Objective ..................................... 87

8.2 Researchers and Expenditures by Industry ..................................... 88
8.3 Trends in Technology Trade by Business Enterprises ................... 89
8.4 Composition of Technology Trade by Major Country/Region ..... 90
8.5 Changes in the Number of Patent Applications Filed with
Major Offices by Japanese Applicants .......................................... 92
8.6 Trends in Internet Usage Rate by Age Group .................................. 93
8.7 International Comparison of the Number of
Broadband Subscribers .................................................................. 94
8.8 Telephone Service Subscribers ........................................................ 96
9.1 Composition of Domestic Transport ............................................... 99
9.2 Rail Transport by Country ............................................................. 101
9.3 Japanese Overseas Travelers and Foreign Visitor Arrivals .......... 104

11.1 Foreign Trade ...................................................................................111

11.2 Component Ratios of Foreign Trade by Commodity .................. 113
11.3 Japan's Major Export and Import Commodities ........................... 115
11.4 Japan's Foreign Trade by Country/Region .................................... 117
11.5 Trends in Japan's Trade by Country/Region ................................. 118
11.6 Yen Exchange Rate against the U.S. Dollar ................................. 121
11.7 Trends in ODA by Country ........................................................... 123
11.8 Distribution of Bilateral ODA by Sector ....................................... 125

12.1 Labor Force Participation Rate by Gender ................................... 129

12.2 Structure of Employment by Country ........................................... 130
12.3 Distribution of Employment by Industry ...................................... 132
12.4 Percentage of Non-Regular Staff Members by Gender ............... 134
12.5 Employment Pattern by Gender and Age ..................................... 135
12.6 Unemployment Rate and Ratio of Job Openings to Job Seekers 137
12.7 Unemployment Rates by Gender and Age ................................... 138
12.8 Unemployment Rates by Country ................................................ 139
12.9 Monthly Contractual Cash Earnings by Size of Enterprise ......... 141

13.1 Average Monthly Consumption Expenditures .............................. 143

13.2 Balance of Income and Expenditures ............................................. 145
13.3 Annual Change in Household Income and Expenditures ............. 146
13.4 Average Monthly Family Income and Expenditures
by Age Group of Household Head .............................................. 147
13.5 Average Monthly Income and Expenditures
(Non-working elderly households) ............................................. 148
13.6 Price Trends ..................................................................................... 152
13.7 CPI by Country ................................................................................ 152
13.8 Regional Difference Index of Prices by Selected Prefectures ...... 153

14.1 Sources of Carbon Dioxide Emissions in Japan ............................ 157

14.2 Recycling of Nonindustrial Waste .................................................. 159
14.3 Ratio of Housing with Barrier-Free Features ................................. 161
15.1 Trends in Social Security Benefit Expenditures by Sector ........... 166
15.2 National Contribution Ratio by Country ........................................ 167
15.3 Death Rates by Major Cause .......................................................... 169
15.4 Trends in Medical Care Expenditures ............................................ 172

16.1 Japanese School System ................................................................. 175

16.2 University Students by Major Subject ........................................... 176
16.3 Public Expenditures on Education ................................................. 177
16.4 Participation Rates for Sports by Gender and Age Group ............ 180
16.5 Trends in Number of Publications .................................................. 181
16.6 Newspaper Circulation by Country ................................................ 182
16.7 Subscribers of Cable Television Service ........................................ 183

17.1 Separation of the Three Branches of Government

under the Japanese Constitution .................................................. 189
17.2 Government Organization of Japan ............................................... 190
17.3 Government System by Level ........................................................ 195
17.4 Local Government Employees by Type of
Administrative Services ............................................................... 195
Photo Sources
MATSUMURA Mitsuo; The Month of Photography, Tokyo 2013 Cover photo
HATTORI Masayuki; The Month of Photography, Tokyo 2013 ....... Chapter 1
SUZUKI Hiroko; The Month of Photography, Tokyo 2013 .............. Chapter 2
FUJII Kanako; The Month of Photography, Tokyo 2013 ................... Chapter 3
Currency Museum, Bank of Japan ....................................................... Chapter 4
OKAMURA Hiroko; The Month of Photography, Tokyo 2013 ........ Chapter 5
OZAWA Kikue; The Month of Photography, Tokyo 2013 ................ Chapter 6
OGASAWARA Satoru; The Month of Photography, Tokyo 2013 .... Chapter 7
RIKEN ................................................................................................... Chapter 8
HATANO Miho; The Month of Photography, Tokyo 2013 ............... Chapter 9
IMATANI Akiyoshi; The Month of Photography, Tokyo 2013 ....... Chapter 10
Ministry of Foreign Affairs ................................................................. Chapter 11
SHIMOSATO Sachiko; The Month of Photography, Tokyo 2013 .. Chapter 12
ITOU Yoshitoki; The Month of Photography, Tokyo 2013 .............. Chapter 13
KONDO Hiroki; The Month of Photography, Tokyo 2013 ............. Chapter 14
KIMURA Shinkoh; The Month of Photography, Tokyo 2013 ......... Chapter 15
SAITO Jun; The Month of Photography, Tokyo 2013 ..................... Chapter 16
Secretariat of the House of Councillors ........................................... Chapter 17

Cover photo: Mt. Fuji

Cherry blossoms frame a view of Mt. Fuji in the spring (Shizuoka
Prefecture). Mt. Fuji was registered as a World Heritage Site in June 2013.
It is the 17th such site in Japan.
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 1
Land and Climate

© HATTORI Masayuki

Lake Chuzenji-ko in winter (Nikko National Park, Tochigi Prefecture). With its
surface 1,269 meters above sea level, it is the highest lake in Japan. The resort area
surrounding the lake is widely known in Japan and abroad.
 LAND AND CLIMATE

1. Land
Japan is an island nation situated off the eastern seaboard of the Eurasian
continent in the northern hemisphere. The islands form a crescent-shaped
archipelago stretching from northeast to southwest parallel to the
continental coastline with the Sea of Japan in between. The country is
located between approximately 20 degrees to 45 degrees north latitude and
stretches over 3,200 kilometers. It consists of the main islands of
Hokkaido, Honshu, Shikoku, Kyushu and Okinawa, and more than 6,800
smaller islands of varying sizes. Its surface area totals approximately
380,000 square kilometers, a figure equivalent to 0.3 percent of the global
land mass.
Since the Japanese archipelago is located in a zone of relatively young
tectonic plate movement, it is particularly prone to various physiographical
phenomena. Therefore, the number of earthquake occurrences is quite high
there, and so is the proportion of active volcanoes. The land is full of
undulations, with mountainous regions including hilly terrain accounting
for about three-quarters of its total area. The mountains are generally steep
and are intricately carved out by ravines. Hilly terrain extends between the
mountainous regions and the plains.

Table 1.1 Table 1.2

Surface Area of Japan (2012) Top 10 Countries According
(Square kilometers) to Surface Area (2011) 1)
District Area (1,000 square kilometers)
Japan ........................ 377,960 Country Area
Honshu .................... a) 231,121 World ............................ 136,127
Hokkaido ................. 83,457 Russia ......................... 17,098
Kyushu .................... 42,194 Canada ........................ 9,985
Shikoku ................... a) 18,793
U.S.A. ......................... 9,629
Okinawa .................. 2,277
China .......................... 9,597
a) Excluding some areas of which Brazil .......................... 8,515
boundaries are not yet fixed. Australia ..................... 7,692
Source: Ministry of Land, Infra- India ............................ 3,287
structure, Transport and Tourism. Argentina .................... 2,780
Kazakhstan ................. 2,725
Algeria ........................ 2,382
1) Comprising land area and inland
waters. Excluding polar regions and
uninhabited islands.
Source: United Nations.

2
 LAND AND CLIMATE

Figure 1.1 Table 1.3

Famous Mountains of the World Mountains (2012)
(Meters)
m
10,000 Name Height
Fuji-san ........................... 3,776
Kita-dake ........................ 3,193
Okuhotaka-dake .............. 3,190
9,000 Aino-dake ....................... 3,189
Yari-ga-take .................... 3,180
Higashi-dake ................... 3,141
8,848 Akaishi-dake ................... 3,120
8,000 Karasawa-dake ............... 3,110
Mt. Everest Kitahotaka-dake .............. 3,106
(Asia) Obami-dake .................... 3,101
Source: Ministry of Land, Infra-
7,000 structure, Transport and Tourism.
Mt. Aconcagua
(S. America) Table 1.4
6,959
Rivers (2012)
6,000 (Kilometers)
5,895 6,194 Name Length
Shinano-gawa ................. 367
Mt. Kilimanjaro Tone-gawa ...................... 322
5,000 (Africa) Mt. McKinley Ishikari-gawa .................. 268
(N. America) Teshio-gawa ................... 256
Kitakami-gawa ............... 249
4,808 Abukuma-gawa ............... 239
4,000
Mogami-gawa ................. 229
Mont Blanc Kiso-gawa ....................... 229
(Europe)
Tenryu-gawa ................... 213
3,776 Agano-gawa .................... 210
3,000 Fuji-san Source: Ministry of Land, Infra-
(Japan) structure, Transport and Tourism.
Table 1.5
Lakes (2012)
2,000
(Square kilometers)
Name Area
Biwa-ko .......................... 670.3
1,000 Kasumi-ga-ura ................ 167.6
Saroma-ko ...................... 151.8
Inawashiro-ko ................. 103.3
Naka-umi ........................ 86.1
Kussharo-ko .................... 79.6
0
Shinji-ko ......................... 79.1
Shikotsu-ko ..................... 78.4
Source: National Astronomical Observatory Toya-ko ........................... 70.7
of Japan.
Hamana-ko ..................... 65.0
Source: Ministry of Land, Infra-
structure, Transport and Tourism.

3
 LAND AND CLIMATE

Forests account for the largest portion of the nation's surface area. There
are approximately 250,000 square kilometers (which equates to 66 percent
of the nation's surface area) of forests, followed by approximately 50,000
square kilometers of farmland (12 percent). Together, forests and farmland
thus cover approximately 80 percent of the nation. There are
approximately 20,000 square kilometers of building land (5 percent).

Table 1.6
Surface Area by Use
(1,000 square kilometers)
Inland 1) Building
Year Total Forests Farmland Roads 2) Others
water land
1980 377.7 252.6 56.1 11.5 10.4 14.0 33.1
1990 377.7 252.4 53.3 13.1 11.4 16.0 31.5
2000 377.9 251.1 49.1 13.5 12.7 17.9 33.6
2010 377.9 250.7 46.7 13.3 13.6 19.0 34.7
(%) 100.0 66.3 12.4 3.5 3.6 5.0 9.2
1) Including farm roads and forest roads, etc. 2) Including industrial land and other land
for buildings.
Source: Ministry of Land, Infrastructure, Transport and Tourism.

2. Climate
The Japanese archipelago has a temperate marine climate, with four
distinct seasons, an annual average temperature of between 10 to 20
degrees centigrade, and annual precipitation of 1,000 to 2,500 millimeters.
Japan typically experiences hot, humid summers and cold, dry winters.
The topography of Honshu, however, features a series of major mountain
ranges running from north to south. Because of this feature, the northwest
monsoon in the winter brings humid conditions with heavy precipitation
(snow) to Honshu's Sea of Japan side but comparatively dry weather with
low precipitation to the Pacific Ocean side. In summer, the winds blow
mainly from the southeast, giving rise to hot and humid weather. Another
unique characteristic of Japan's climate is that it has two long spells of
rainy seasons, one in early summer when southeast monsoon begins to
blow, and the other in autumn when the winds cease. From summer to
autumn, tropical cyclones generated in the tropical seas develop into
typhoons and hit Japan, sometimes causing storm and flood damage.

4
 LAND AND CLIMATE

Figure 1.2
Temperature and Precipitation (Normal value)
(1981-2010 average)
℃ Sapporo
30
A
J
20
J S
℃ Kanazawa M
30 10 O
A
J A N
J S
20 0 D
M M
O
F Jan.
A N
10 -10
M D 0 100 200 mm HOKKAIDO
F Jan.
0
0 100 200 300 400 mm

℃ Kyoto HONSHU ℃ Tokyo

30 J
30 A
A J
S J S
J
20 O
20 M
M O
A N A
N
10 10 D
D M KYUSHU M
Jan. F
Jan. F SHIKOKU
0 0
0 100 200 300 mm 0 100 200 300 mm

℃ Takamatsu
30 J
A
Naha OKINAWA M
J
℃ 20 S
40
O
A N A
J
30 S ℃ Kagoshima 10
30 D M
O J
N A Jan.
20 A M J F
D O S 0
J
Jan. F M 20 0 100 200 mm
10 N M
A
D
10
0 M
Jan. F
0 100 200 300 mm
0
0 100 200 300 400 500 mm

Source: Japan Meteorological Agency.

5
 LAND AND CLIMATE

Table 1.7
Temperature and Precipitation (Normal value) (1981-2010 average)
Temperature (℃) Precipitation (mm)
Observing
Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Annual 1)
station
High -0.6 0.1 4.0 11.5 17.3 21.5 24.9 26.4 22.4 16.2 8.5 2.1 12.9
Temp.
Sapporo Low -7.0 -6.6 -2.9 3.2 8.3 12.9 17.3 19.1 14.2 7.5 1.3 -4.1 5.3
Prec. 114 94 78 57 53 47 81 124 135 109 104 112 1,107
High 9.9 10.4 13.3 18.8 22.8 25.5 29.4 31.1 27.2 21.8 16.9 12.4 20.0
Temp.
Tokyo Low 2.5 2.9 5.6 10.7 15.4 19.1 23.0 24.5 21.1 15.4 9.9 5.1 13.0
Prec. 52 56 118 125 138 168 154 168 210 198 93 51 1,529
High 6.8 7.3 11.0 16.9 21.6 25.0 28.8 30.9 26.6 21.3 15.5 10.2 18.5
Temp.
Kanazawa Low 0.9 0.7 3.0 8.2 13.1 18.0 22.3 23.7 19.5 13.3 7.7 3.4 11.2
Prec. 270 172 159 137 155 185 232 139 226 177 265 282 2,399
High 8.9 9.7 13.4 19.9 24.6 27.8 31.5 33.3 28.8 22.9 17.0 11.6 20.8
Temp.
Kyoto Low 1.2 1.4 4.0 9.0 14.0 18.8 23.2 24.3 20.3 13.6 7.8 3.2 11.7
Prec. 50 68 113 116 161 214 220 132 176 121 71 48 1,491
High 9.4 10.1 13.4 19.5 24.1 27.3 31.2 32.4 28.4 22.8 17.2 12.1 20.7
Temp.
Takamatsu Low 1.6 1.8 4.4 9.4 14.4 19.3 23.6 24.4 20.7 14.2 8.5 3.7 12.2
Prec. 38 48 83 76 108 151 144 86 148 104 60 37 1,082
High 12.8 14.3 17.0 21.6 25.2 27.6 31.9 32.5 30.1 25.4 20.3 15.3 22.8
Temp.
Kagoshima Low 4.6 5.7 8.4 12.7 17.1 21.0 25.3 25.6 22.8 17.5 11.9 6.7 14.9
Prec. 78 112 180 205 221 452 319 223 211 102 92 71 2,266
High 19.5 19.8 21.7 24.1 26.7 29.4 31.8 31.5 30.4 27.9 24.6 21.2 25.7
Temp.
Naha Low 14.6 14.8 16.5 19.0 21.8 24.8 26.8 26.6 25.5 23.1 19.9 16.3 20.8
Prec. 107 120 161 166 232 247 141 241 261 153 110 103 2,041
1) Annual average for temperature and annual total for precipitation.
Source: Japan Meteorological Agency.

6
 LAND AND CLIMATE

The Great East Japan Earthquake

1. Overview
At 2:46 p.m. on March 11, 2011, a strong earthquake of magnitude 9.0
occurred in the Pacific Ocean near the coast of northeastern Japan. The
tsunami that followed was measured as high as 8.5 meters in Miyako,
Iwate Prefecture. It devastated cities, towns, and villages along a broad
swath of the Pacific coast of the Tohoku Region in northeastern Japan,
causing vast human and material damage. In Tokyo, the intensity of the
quake was measured at level 5-upper on the Japanese scale, but there was
only minor damage. The magnitude of 9.0 made it the largest earthquake
ever measured in Japan, and the fourth largest in the world since 1900.
2. Damage
The earthquakes and the huge tsunami that followed caused heavy
casualties and enormous damage in the northeastern area and its vicinity,
such as the Kanto Region. As of May 2013, the confirmed number of
deaths had reached 15,883 persons, with 2,676 missing and 6,144 injured.
There were 303,571 displaced persons living in evacuation centers nearby.
Damage (as of May 10, 2013) 1)
Human damage Building damage
Prefectures Partially
Deaths Missing Injuries Total collapse Half collapse
damaged
Total 15,883 2,676 6,144 126,419 272,017 740,552
Hokkaido 1 - 3 - 4 7
Aomori-ken 3 1 111 308 701 1,006
Iwate-ken 4,673 1,150 212 18,370 6,558 14,141
Miyagi-ken 9,537 1,312 4,144 82,855 154,979 222,601
Akita-ken - - 11 - - 3
Yamagata-ken 2 - 29 - - 21
Fukushima-ken 1,606 210 182 21,165 72,935 166,410
Ibaraki-ken 24 1 712 2,620 24,168 184,115
Tochigi-ken 4 - 133 261 2,112 73,017
Gunma-ken 1 - 39 - 7 17,246
Saitama-ken - - 45 24 199 1,800
Chiba-ken 21 2 258 801 10,117 54,850
Tokyo-to 7 - 117 15 198 4,847
Kanagawa-ken 4 - 137 - 39 454
Niigata-ken - - 3 - - 17
Yamanashi-ken - - 2 - - 4
Nagano-ken - - 1 - - -
Shizuoka-ken - - 3 - - 13
Mie-ken - - 1 - - -
Kochi-ken - - 1 - - -
1) Including 18 earthquakes that occurred throughout the country between April 7, 2011 and January 31, 2013.
Source: National Police Agency.

7
 LAND AND CLIMATE

Devastated area (as of May 10, 2013) 1)

Main disaster zone

Iwate-ken
Deaths 4,673
Missing 1,150
Injuries 212

Miyagi-ken
Deaths 9,537
Missing 1,312
Quake
Injuries 4,144 focus

Mw 9.0
20km
10km
Fukushima Nuclear
Power Plant

Total
Fukushima-ken
Deaths 15,883
Missing 2,676 Deaths 1,606
Injuries 6,144 Missing 210
Injuries 182

Tokyo-to

1) Including 18 earthquakes that occurred throughout the country between April 7, 2011 and January
31, 2013.
Source: National Police Agency.

8
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 2

Population

© SUZUKI Hiroko

Parents hold their twin babies. In 2012, Japan's total fertility rate (number of children
born to a woman over her lifetime) was 1.41. It was higher than the previous year's
1.39.
 POPULATION

1. Total Population

Japan's total population in 2012 was 127.52 million. This ranked tenth in
the world and made up 1.8 percent of the world's total. Japan's population
density measured 343.4 persons per square kilometer in 2010, ranking
seventh among countries with a population of 10 million or more.

Figure 2.1
Population Pyramid

Age
73 years: Birth rate declined in 1938-39
100
100
and over due to the Sino-Japanese Incident.
Males Females
90
66 and 67 years: Birth rate declined
80
around the end of World War Ⅱ.
70
63 to 65 years: Born in the first
60 "baby boom" period (1947-49).
50
2012 46 years: Born in 1966, "the year of
Hinoeuma" (turns around every 60
40
years). Superstition says girls born in
30 this year bring bad luck.

20
38 to 41 years: Born in the second
10 "baby boom" period (1971-74).
1935

0
1,200 800 400 0 0 400 800 1,200
Thousands

Source: Statistics Bureau, MIC.

Table 2.1
Countries with a Large Population (2012)
(Millions)
Country Population Country Population
World ................................ 7,080
China ............................. 1,377 Pakistan ........................... 179
India ............................... 1,237 Nigeria ............................. 169
U.S.A. ............................ 318 Bangladesh ...................... 155
Indonesia ....................... 247 Russia .............................. 143
Brazil ............................. 199 Japan ................................ 128
Source: Statistics Bureau, MIC; United Nations.

10
 POPULATION

Figure 2.2
Population Density by Country (2010)
Bangladesh 1,049.5
Korea,Rep.of
Korea, Rep. of 486.8
Rwanda 411.4
Netherlands 400.1
India 366.8
Belgium 358.4
Japan 343.4
U.K. 255.5
Germany 232.5
Italy 200.8
China 141.7
France 114.7 = 50 persons
(per square kilometer)
U.S.A. 32.4
Brazil 22.9
Russia 8.4
Canada 3.4

Source: Statistics Bureau, MIC; United Nations.

From the eighteenth century through the first half of the nineteenth century,
Japan's population remained steady at about 30 million. Following the
Meiji Restoration in 1868, it began expanding in tandem with the drive to
build a modern nation-state. In 1926, it reached 60 million, and in 1967, it
surpassed the 100 million mark. However, Japan's population growth has
slowed in more recent years, with the annual pace of population growth
averaging about one percent from the 1960s through the 1970s. Since the
1980s, it has declined sharply. Japan's 2005 total population was 127.77
million, declining from the previous year (127.79 million) for the first time
after World War II. In 2012, it was 127.52 million, down by 284,000 from
the year before.

11
 POPULATION

Table 2.2
Trends in Population (as of October 1)
Age composition (%) Average
Population (1,000) Population
annual rate
Year 0-14 65 and density
15-64 of increase
Males years over (per km2)
(%)
1872 1) 34,806 17,666 ... ... ... ... 91
1) 0.83 115
1900 43,847 22,051 33.9 60.7 5.4
1) 1.16 129
1910 49,184 24,650 36.0 58.8 5.2
1920 55,963 28,044 36.5 58.3 5.3 1.30 147
1930 64,450 32,390 36.6 58.7 4.8 1.42 169
1940 71,933 35,387 36.7 58.5 4.8 1.10 188
1950 84,115 41,241 35.4 59.6 4.9 1.58 226
1955 90,077 44,243 33.4 61.2 5.3 1.38 242
1960 94,302 46,300 30.2 64.1 5.7 0.92 254
1965 99,209 48,692 25.7 68.0 6.3 1.02 267
1970 104,665 51,369 24.0 68.9 7.1 1.08 281
1975 111,940 55,091 24.3 67.7 7.9 1.35 301
1980 117,060 57,594 23.5 67.4 9.1 0.90 314
1985 121,049 59,497 21.5 68.2 10.3 0.67 325
1990 123,611 60,697 18.2 69.7 12.1 0.42 332
1995 125,570 61,574 16.0 69.5 14.6 0.31 337
2000 126,926 62,111 14.6 68.1 17.4 0.21 340
2005 127,768 62,349 13.8 66.1 20.2 0.13 343
2010 128,057 62,328 13.2 63.8 23.0 0.05 343
2011 127,799 62,184 13.1 63.6 23.3 -0.20 343
2012 127,515 62,029 13.0 62.9 24.1 -0.22 342
(Projection, January 2012)
2020 124,100 60,146 11.7 59.2 29.1 -0.34 333
2030 116,618 56,253 10.3 58.1 31.6 -0.62 313
2040 107,276 51,583 10.0 53.9 36.1 -0.83 288
2050 97,076 46,657 9.7 51.5 38.8 -0.99 260
1) As of January 1.
Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare; Ministry of Land,
Infrastructure, Transport and Tourism.

2. Households
(1) Household Size and Household Composition

The Population Census shows that Japan had 51.84 million private
households (excluding "institutional households" such as students in
school dormitories) in 2010, going over 50 million for the first time since

12
 POPULATION

the Census began. Of that total, 56.3 percent were nuclear-family

households, and 32.4 percent were one-person households.

Figure 2.3
Changes in Household Composition
%
0 20 40 60 80 100

1995 25.6 58.5 11.9 3.9

2000 27.6 58.3 10.1 4.0

2005 29.5 57.7 8.6 4.2

2010 32.4 56.3 7.1 4.2

▲ ▲ ▲
One-person households Nuclear-family households Others
Three-generation households 1)
1) A household in which at least three generations out of five generations in a direct line live
together, regardless of the presence of other household members.
Source: Statistics Bureau, MIC.

Table 2.3
Households and Household Members
Private Private
Members Population
house- Average annual household Average annual
Year per
holds rate of increase members rate of increase
household (1,000)
(1,000) (%) (1,000) (%)
1970 30,297 a) 3.00 103,351 3.41 104,665 1.08
1975 33,596 2.09 110,338 3.28 111,940 1.35
1980 35,824 1.29 115,451 3.22 117,060 0.90
1985 37,980 1.18 119,334 3.14 121,049 0.67
1990 40,670 1.38 121,545 2.99 123,611 0.42
1995 43,900 1.54 123,646 2.82 125,570 0.31
2000 46,782 1.28 124,725 2.67 126,926 0.21
2005 49,063 0.96 124,973 2.55 127,768 0.13
2010 51,842 1.11 125,546 2.42 128,057 0.05
a) Annual rate of increase between 1960-1970.
Source: Statistics Bureau, MIC.

13
 POPULATION

From the 1920s to the mid-1950s, the average number of household

members remained at about five. However, due to the increase in
one-person households and nuclear families since 1960s, the size of
household was down significantly in 1970, to 3.41 members. The size of
household members continued to decline to 2.42 in 2010. Although the
Japanese population has shifted into decline, the number of households is
expected to continue to increase for some years to come, as the size of the
average household will shrink further. The number of households is
projected to peak in 2019 and then decrease thereafter.

(2) Elderly Households

The number of elderly households (private households with household

members 65 years of age or over) in 2010 was 19.34 million. They
accounted for 37.3 percent of private households. There were 4.79 million
one-person elderly households. Among these, there were 2.5 times as
many women as men. There were 5.25 million aged-couple households.

Table 2.4
Trends in Elderly Households
(Thousands)
Type of households 1980 1985 1990 1995 2000 2005 2010
Private households ..................... 35,824 37,980 40,670 43,900 46,782 49,063 51,842
Elderly households 1) .............. 8,124 9,284 10,729 12,790 15,057 17,220 19,338
(percentage) ........................... 22.7 24.4 26.4 29.1 32.2 35.1 37.3
One-person households ..... 881 1,181 1,623 2,202 3,032 3,865 4,791
Males .............................. 193 233 310 460 742 1,051 1,386
Females ........................... 688 948 1,313 1,742 2,290 2,814 3,405
2)
Aged-couple households 1,026 1,415 1,967 2,763 3,661 4,487 5,251
1) For 1980–1990, private households with related members 65 years of age or over; from
1995 on, private households with household members 65 years of age or over. 2)
Consisting of a husband 65 years of age and over and his wife 60 years of age and over.
Source: Statistics Bureau, MIC.

14
 POPULATION

3. Declining Birth Rate and Aging Population

The population pyramid of 1950 shows that Japan had a standard-shaped

pyramid marked by a broad base. The shape of the pyramid, however, has
changed dramatically as both the birth rate and death rate have declined. In
2012, aged population (65 years and over) was 30.79 million, constituting
24.1 percent of the total population and marking a record high. This
percentage of elderly in the population is the highest in the world.

Figure 2.4
Changes in the Population Pyramid
1950 2012 2050 (Projection)
years and over
100 100
90 90
Males Females
80 80
38.8%
70
4.9% 65 and over 24.1% 70
60 60
50 50
59.6 15-64 62.9 51.5
40 40
30 30
20 20
10 10
35.4 0-14 13.0 9.7
0 0
6 4 2 0 2 4 6 6 4 2 0 2 4 6 6 4 2 0 2 4 6
Millions Millions Millions

Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare.

The speed of aging of Japan's population is much faster than in advanced

Western European countries or the U.S.A. Although aged population in
Japan accounted for only 7.1 percent of the total population in 1970, 24
years later in 1994, it had almost doubled in scale to 14.1 percent. In other
countries with an aged population, it took 61 years in Italy, 85 years in
Sweden, and 115 years in France for the percentage of the elderly to
increase from 7 percent to 14 percent of the population. These
comparisons clearly highlight the rapid progress of demographic aging in
Japan.

15
 POPULATION

Figure 2.5
Proportion of Elderly Population by Country (Aged 65 years and over)
%
40

35
Japan
▼
30
Italy
▼
25

20 Sweden ▲
France ▼
U.S.A.
15
▲
10 Korea, Rep. of China
▼
▲
5 India

0
1950 60 70 80 90 00 10 20 30 40 50

Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare; United Nations.

Table 2.5
Age Structure of Population by Country
(%)
2010 2050 (projection)
Country 65 and 65 and
0-14 years 15-64 0-14 years 15-64
over over
Japan ..................... 13.2 63.8 23.0 9.7 51.5 38.8
Korea, Rep. of ...... 16.2 72.7 11.1 12.0 53.1 34.9
Italy ....................... 14.0 65.7 20.3 13.9 53.1 33.0
Germany ............... 13.4 65.8 20.8 12.6 54.7 32.7
France ................... 18.4 64.8 16.8 17.0 57.6 25.5
U.K. ...................... 17.6 65.9 16.6 16.6 58.7 24.7
Canada .................. 16.5 69.4 14.2 16.5 58.8 24.7
China .................... 18.1 73.5 8.4 14.7 61.3 23.9
Sweden ................. 16.5 65.3 18.2 18.0 59.2 22.8
Brazil .................... 25.5 67.6 6.9 15.3 62.2 22.5
U.S.A. ................... 19.8 67.1 13.1 18.2 60.4 21.4
Russia ................... 14.9 72.0 13.1 17.1 62.4 20.5
India ..................... 30.2 64.8 5.1 19.5 67.8 12.7
Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare; United Nations.

16
 POPULATION

On the other hand, in 2012, the child population in Japan (0-14 years)
amounted to 16.55 million, accounting for 13.0 percent of the total
population, the lowest level on record since the survey began. In terms of
their proportion of the total population, the aged have surpassed the child
group since 1997. The production-age population (15-64 years) totaled
80.18 million. In share terms, it accounted for 62.9 percent of the entire
population, continuing its decline since 1993. As a result, the ratio of the
dependent population (the sum of aged and child population divided by the
production-age population) was 59.0 percent.

4. Births and Deaths

Population growth in Japan had primarily been driven by natural increase,

while social increase played only a minor part. In 2005, however, the
natural change rate (per 1,000 population) turned negative for the first time
since 1899; the figure was -1.7 in 2012.

During the second baby boom, the birth rate was at a level of 19 (per 1,000
population) between 1971 and 1973. Since the late 1970s, it has continued
to drop. The rate for 2012 was 8.2.

Figure 2.6
Natural Population Change
Per 1,000 population
30

25
Live birth rate
20

15

10

5 Natural change rate

Death rate
0

-5
1950 55 60 65 70 75 80 85 90 95 00 05 10 12 *
Source: Ministry of Health, Labour and Welfare.

17
 POPULATION

Table 2.6
Vital Statistics
1)
Rates per 1,000 population Total Life expectancy at birth
Year Infant Natural fertility (years)
Live births Deaths 2)
mortality change rate Males Females
1950 28.1 10.9 60.1 17.2 3.65 a) 59.57 a) 62.97
1955 19.4 7.8 39.8 11.6 2.37 63.60 67.75
1960 17.2 7.6 30.7 9.6 2.00 65.32 70.19
1965 18.6 7.1 18.5 11.4 2.14 67.74 72.92
1970 18.8 6.9 13.1 11.8 2.13 69.31 74.66
1975 17.1 6.3 10.0 10.8 1.91 71.73 76.89
1980 13.6 6.2 7.5 7.3 1.75 73.35 78.76
1985 11.9 6.3 5.5 5.6 1.76 74.78 80.48
1990 10.0 6.7 4.6 3.3 1.54 75.92 81.90
1995 9.6 7.4 4.3 2.1 1.42 76.38 82.85
2000 9.5 7.7 3.2 1.8 1.36 77.72 84.60
2005 8.4 8.6 2.8 -0.2 1.26 78.56 85.52
2010 8.5 9.5 2.3 -1.0 1.39 79.55 86.30
2011 8.3 9.9 2.3 -1.6 1.39 79.44 85.90
2012 * 8.2 * 10.0 * 2.2 * -1.7 * 1.41 79.94 86.41
1) The infant mortality rate is per 1,000 live births. 2) The average number of children that
would be born alive to a hypothetical cohort of women if, throughout their reproductive
years, the age-specific fertility rates for the specified year remained unchanged. a) 1950-1952
period.
Source: Ministry of Health, Labour and Welfare.

The decline in the birth rate may partly be attributable to the rising
maternal age at childbirth. The average mothers' age at first childbirth rose
from 25.6 in 1970 to 30.3 in 2012. The total fertility rate was on a
downward trend after dipping below 2.00 in 1975. It marked a record low
of 1.26 in 2005 and started to increase after that. The total fertility rate
reached 1.41 in 2012.

18
 POPULATION

Table 2.7
Changes of Mothers' Age at Childbirth
Number Distribution of mothers' age (%) Mean age
Year of babies 40 and bearing first
-19 20-24 25-29 30-34 35-39
(1,000) over child
1970 1,934 1.0 26.5 49.2 18.5 4.2 0.5 25.6
1975 1,901 0.8 25.2 53.4 16.8 3.3 0.5 25.7
1980 1,577 0.9 18.8 51.4 24.7 3.7 0.5 26.4
1985 1,432 1.2 17.3 47.7 26.6 6.5 0.6 26.7
1990 1,222 1.4 15.7 45.1 29.1 7.6 1.0 27.0
1995 1,187 1.4 16.3 41.5 31.3 8.4 1.1 27.5
2000 1,191 1.7 13.6 39.5 33.3 10.6 1.3 28.0
2005 1,063 1.6 12.1 31.9 38.1 14.4 1.9 29.1
2010 1,071 1.3 10.4 28.6 35.9 20.5 3.3 29.9
2011 1,051 1.3 9.9 28.6 35.5 21.1 3.6 30.1
2012 * 1,037 1.2 9.2 28.2 35.4 21.7 4.1 30.3
Source: Ministry of Health, Labour and Welfare.

The death rate (per 1,000 population) was steady at 6.0 - 6.3 between 1975
and 1987. Since 1988, however, it has shown uptrend, reflecting the
increased percentage of the elderly in the overall population. The death
rate was 10.0 in 2012.

Average life expectancy in Japan climbed sharply after World War II, and
is today at the highest level in the world. In 2012, life expectancy at birth
was 86.4 years for women and 79.9 years for men.

19
 POPULATION

Figure 2.7
Life Expectancy at Birth by Country
Years
45
0 50 55 60 65 70 75 80 85 90
86.4
Japan (2012) 79.9
84.8
France (2012) 78.4
Switzerland 84.7
(2011) 80.3
83.5
Sweden (2012) 79.9
81.1
U.S.A. (2011) 76.3
77.7
Brazil (2011) 70.6
77.4
China (2010) 72.4

Russia (2011) 75.6 Females

64.0
71.4
Egypt (2011)
68.6
South Africa 57.2 Males
(2009) 53.5

Source: Ministry of Health, Labour and Welfare.

5. Marriages and Divorces

The annual number of marriages in Japan exceeded one million couples in

the early 1970s, which, coupled with the marriage rate (per 1,000
population) hovering over 10.0, showed an apparent marriage boom.
However, both the number and rate started declining thereafter. They rose
again in the late 1980s but have, though fluctuating repeatedly. In 2012,
669,000 couples married, and the marriage rate was 5.3, the first increase
in four years.

The mean age of first marriage was 30.8 for men and 29.2 for women in
2012, a rise by 2.4 years and 3.1 years, respectively, over the past twenty
years. The declining marriage rate and rising marrying age in recent years
as described above is one explanation for the dropping birth rate.

20
 POPULATION

Figure 2.8 Table 2.8

Changes in Marriage Rate and Mean Age of First Marriage
Divorce Rate Year Groom Bride
1950 25.9 23.0
Per 1,000 population
12 1955 26.6 23.8
1960 27.2 24.4
10 1965 27.2 24.5
1970 26.9 24.2
8 Marriage rate 1975 27.0 24.7
▼ 1980 27.8 25.2
6 1985 28.2 25.5
1990 28.4 25.9
4 1995 28.5 26.3
Divorce rate 2000 28.8 27.0
2 ▼ 2005 29.8 28.0
2010 30.5 28.8
0 2011 30.7 29.0
1970 75 80 85 90 95 00 05 10 12* 2012 * 30.8 29.2
Source: Ministry of Health, Labour and Source: Ministry of Health, Labour
Welfare. and Welfare.

In contrast, divorces have shown an upward trend since the late 1960s,
hitting a peak of 290,000 in 2002. Subsequently, both the number of
divorces and the divorce rate have been declining since 2003. In 2012, the
number of divorces totaled 235,000, and the divorce rate (per 1,000
population) was 1.87, the same rate as that of the previous year.

6. Population Density and Regional Distribution

(1) Population Density

In 2010, Tokyo had the largest population of 13.16 million among Japan's
47 prefectures, followed in decreasing order by the prefectures of
Kanagawa, Osaka, Aichi, and Saitama. These five prefectures each had a
population of seven million or more, and together accounted for 35.7
percent of the total population.

The population density in Tokyo was the highest among Japan's

prefectures, at 6,016 persons per square kilometer. This was almost 18
times the national average (343 persons per square kilometer).

21
 POPULATION

In 2010, there were 12 cities in Japan with a population of one million or

more. Their total population topped 28 million, a figure equivalent to 22.5
percent of the national total. The largest single city was the 23 wards (ku)
of central Tokyo, with 8.95 million citizens. It was followed in decreasing
order by Yokohama-shi (3.69 million), Osaka-shi (2.67 million), and
Nagoya-shi (2.26 million).

Figure 2.9
Population Density by Prefecture (2010)

(per square km)

Under 200
200 - 299
300 - 499
500 - 999
1,000 persons and over

Tokyo

Source: Statistics Bureau, MIC.

22
 POPULATION

Table 2.9
Population of Major Cities
(Thousands)
Population Population
Cities Cities
2005 2010 2005 2010
Tokyo, 23 wards (ku ) . 8,490 8,946 Kyoto-shi ................... 1,475 1,474
Yokohama-shi ........... 3,580 3,689 Fukuoka-shi .............. 1,401 1,464
Osaka-shi ................... 2,629 2,665 Kawasaki-shi ............. 1,327 1,426
Nagoya-shi ................ 2,215 2,264 Saitama-shi ................ 1,176 1,222
Sapporo-shi ............... 1,881 1,914 Hiroshima-shi ............ 1,154 1,174
Kobe-shi .................... 1,525 1,544 Sendai-shi .................. 1,025 1,046
Source: Statistics Bureau, MIC.

(2) Population Distribution

The percentage accounted for by the urban population started increasing in

the late 1950s. In 2010, 51.0 percent of the total population was
concentrated in the three major metropolitan areas, the Kanto major
metropolitan area, the Chukyo major metropolitan area, and the Kinki
major metropolitan area. Population density in the Kanto major
metropolitan area was 2,631 persons per square kilometer. In the Chukyo
major metropolitan area it was 1,288 persons per square kilometer, and in
the Kinki major metropolitan area it was 1,484 persons per square
kilometer.

Table 2.10
Population of Three Major Metropolitan Areas 1)

Population (1,000)
Percentage Surface Population
Areas
of the total Area density
(%) (km2) (per km2)
Kanto major metropolitan area ....................... 36,923 28.8 14,034 2,631
Chukyo major metropolitan area ..................... 9,107 7.1 7,072 1,288
Kinki major metropolitan area ........................ 19,342 15.1 13,033 1,484
Total of three major metropolitan areas .......... 65,373 51.0 34,138 1,915
1) Major metropolitan areas consist of central cities (Kanto: Ku -area of Tokyo, Yokohama-
shi , Kawasaki-shi , Sagamihara-shi , Saitama-shi, and Chiba-shi ; Chukyo: Nagoya-shi ;
Kinki: Osaka-shi , Sakai-shi , Kyoto-shi , and Kobe-shi ) and surrounding areas (cities, towns
and villages).
Source: Statistics Bureau, MIC.

23
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 3
Economy

© FUJII Kanako

Tokyo's Shibuya area is known as a source of cutting-edge Japanese fashion. It draws

many people. Shibuya-ku is home to about 10 percent of Tokyo establishments
engaged in "Retail trade (dry goods, apparel and apparel accessories)."
 ECONOMY

1. Economic Development
After World War II, Japan underwent a period of restoration followed by
high economic growth, eventually becoming the economy with the second
largest GDP in the world in 1967.
During the 1960s, Japan's economy grew at a rapid pace of over 10 percent
per annum. This rapid economic growth was supported by: (i) expansion
of private investments in plant and equipment, backed by a high rate of
personal savings; (ii) a large shift in the working population from primary
to secondary industries, and "an abundant labor force supplied by a high
rate of population growth"; and (iii) an increase in productivity brought
about by adopting and improving foreign technologies.

Figure 3.1
Economic Growth Rates 1)
%
25

20

15

At current prices
10
▼

5 ▲
At constant prices
0

-5
1956-80 data: 1968 SNA 1995-2012 data: 1993 SNA
(constant prices in 1990; (constant prices in 2005;
by fixed-based method) by chain-linked method)
-10
1956 60 70 80 90 00 10 12
1981-94 data: 1993 SNA
(constant prices in 2000;
by chain-linked method)

1) Data was estimated using a different method beginning in 1995.

Source: Cabinet Office.

25
 ECONOMY

From the late 1960s until the first half of the 1970s, new social problems
emerged that reflected warps left by high economic growth. As a result,
steps to tackle environmental pollution, urban issues and social security
problems became the central targets of administrators, and
countermeasures were taken accordingly.
In the 1970s, the sharp increase of Japan's exports of industrial products to
the U.S.A. and Europe began to cause international friction. In 1971, the
U.S.A. announced it would end the convertibility of the dollar into gold. In
December 1971, Japan revalued the yen from 360 yen against the U.S.
dollar, which had been maintained for 22 years, to 308 yen. In February
1973, Japan adopted a floating exchange-rate system.
In October 1973, the fourth Middle East War led to the first oil crisis,
triggering high inflation. Accordingly, Japan recorded negative economic
growth in 1974 for the first time in the post-war period. Following the
second oil crisis in 1978, efforts were made to change Japan's industrial
structure from "energy-dependent" to "energy-saving," enabling Japan to
successfully overcome inflation.
In the 1980s, the trade imbalance with advanced industrial countries
expanded because of the yen's appreciation. As part of administrative and
financial reforms, Japan National Railways and Nippon Telegraph and
Telephone Public Corporation were privatized. As a result, domestic
demand-led economic growth was achieved.

2. Bubble Economy and Its Collapse

At the end of the 1980s, Japan's economy enjoyed favorable conditions,
with stable wholesale prices and a low unemployment rate. Corporate
profits were at their highest level in history, and corporate failures were at
their lowest level, while investments in plant and equipment for
manufacturing products, such as semiconductors, were very active. Stock
and land prices continued to rise rapidly, and large-scale urban
developments and resort facility developments in rural areas progressed at
a very fast pace. However, excessive funds flowed into the stock and real
estate markets, causing abnormal increases in capital asset values (forming
an economic bubble).

26
 ECONOMY

Figure 3.2
National Wealth 1)
Trillion yen
4,500
Net external assets
4,000
Tangible non-produced assets

3,500 Fixed assets and inventories

3,000

2,500

2,000

1,500

1,000

500

0
1980 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 11

1) Data was estimated using a different method beginning in 2001.

Source: Cabinet Office.

At the end of 1980, Japan's net worth (national wealth) stood at 1,363
trillion yen, 5.6 times the GDP. It then increased, reaching 3,531 trillion
yen, 8.0 times the GDP, at the end of 1990, owing to increasing land and
stock prices. Since then, Japan's national wealth changed to decreasing by
the collapse of the bubble economy. At the end of 2011, it was 2,996
trillion yen.
At the beginning of 1990, stock prices plummeted, followed by sharp
declines in land prices. This marked the start of major economic recession
(collapse of the bubble economy). Japan's financial and economic systems,
which were excessively dependent on land, consequently approached
collapse.
Massive bad debts were created in financial institutions' loan portfolios, as
corporate borrowers suffered serious losses due to declining land prices.
As a result, shareholders' equity in financial institutions shrank. In 1997,

27
 ECONOMY

large banks began to fail. In 1998 and 1999, the government injected
public money into the banking sector to stabilize the financial system.

Figure 3.3
Gross Domestic Product (Current prices, converted into U.S. dollars)

Trillion U.S. dollars Thousand U.S. dollars

16 50
Total 45 Per capita
14 France
Germany 40
12
U.K. 35
10 U.S.A. 30
Japan
8 25

6 20
15
4
10
2 5
0 0
1985 90 95 00 05 10 12 1985 90 95 00 05 10 12

Source: OECD.

The Japanese economy began to make a moderate recovery in February

1999. This, however, was only a temporary phenomenon, as investments in
plant and equipment were weak and the economy was too dependent on
foreign demand and information and communication technologies. With
the global decline in IT demand from mid-2000, Japan's exports to Asia
dropped, necessitating adjustments of excess inventory and production
facilities. In line with this, the Japanese economy again entered into an
economic downturn in 2001.
Following the simultaneous terrorist attacks in the U.S.A. in September
2001, further slowdown of the world economy became a matter of serious
concern, resulting in greater uncertainty over the outlook for the Japanese
economy. There were several causes for this long-term slump in the
Japanese economy. Among them, the following two factors likely had the
biggest impacts. First, Japanese banks were saddled with large
nonperforming loans. A vicious circle developed, in which the long-term
economic stagnation exacerbated the bad loan situation, while the bad

28
 ECONOMY

loans hindered economic growth. Second, there was another vicious circle,
in which the continuing economic slump led to pessimism about the future
on the part of corporations and consumers, and their hesitation generated
further recession.
Subsequently, the Japanese economy maintained a long-lasting recovery
beginning in early 2002. However, the path has not always been smooth,
given two "soft patches" (temporary softening in the market) and weakness
in some parts of the economy.
The first soft patch was caused by slower export growth following
economic slowdowns in the U.S.A. and the Asian region, both Japan's
major export destinations, since late 2002. The second soft patch resulted
from slower export growth owing to a surplus inventory of
information-related producer goods in Japan as demand for IT-related
goods declined worldwide since late 2004. During the phase of Japan's
economic recovery from the beginning of 2002, there was a common trend
where exports were showing signs of steady growth, reflecting a brisk
recovery of the world economy, but then a soft patch set in and pushed
exports down, resulting in sluggish growth in both production and personal
spending. As exports picked up, the economy broke away from this slower
period.

3. Recent Economic Trends

At the start of 2008, the Japanese economy was faced with a standstill in
its path to recovery as private consumption and investments in plant and
equipment fell flat and so did production. This occurred against the
backdrop of soaring crude oil and raw material prices and repercussions
from the American subprime mortgage loan problems that, since mid-2007,
rapidly clouded future prospects for the world economy further. In addition,
the bankruptcy of the major American securities firm Lehman Brothers in
September 2008 (the "Lehman shock") led to a serious financial crisis in
Europe and the U.S.A. Japan was also affected by the yen's rise and the
sudden economic contraction in the U.S.A. and other countries. Declining
exports contributed to a large drop in production and a sharp rise in
unemployment. As the economy continued to recover with foreign demand
and economic measures after April 2009, the government defined March
2009 as the trough of the economic cycle. On the other hand, in November

29
 ECONOMY

2009, the government summed up the price movements of goods and

services to conclude that they were "in a state of moderate deflation."

Table 3.1
Gross Domestic Product (Expenditure approach) 1)
(Billion yen)
Item 2009 2010 2011 2012
Gross domestic product (GDP) .......................... 489,588.4 512,364.2 509,369.4 519,277.3
Domestic demand .............................................. 480,471.5 494,573.7 496,057.7 510,016.8
Private demand ............................................... 363,506.0 375,726.2 377,477.3 386,409.7
Private final consumption expenditure ........ 292,341.7 300,435.6 301,766.8 308,725.0
Private Residential Investment .................... 12,903.6 12,325.5 13,002.4 13,388.7
Private plant and equipment ........................ 63,853.6 64,075.3 66,202.4 67,560.3
Changes in inventories of private sector ...... -4,927.6 -552.1 -2,855.7 -2,641.8
Public demand ................................................. 116,871.7 118,781.6 118,533.7 123,494.8
Government final consumption expenditure .. 95,524.9 97,335.1 98,702.1 101,048.5
Gross capital formation by public sector ..... 21,435.3 21,575.1 19,963.2 22,467.7
Changes in inventories of public sector ....... -36.7 -63.7 9.2 16.3
Net exports of goods and services ..................... 7,428.0 17,060.7 12,898.6 9,021.9
Exports of goods and services ...................... 66,256.9 82,398.9 82,097.6 81,989.3
(less) Imports of goods and services ............ 58,828.9 65,338.2 69,199.0 72,967.3
(Reference)
Trading gains/losses ........................................... -5,638.3 -11,006.5 -17,296.0 -18,837.3
Gross domestic income ...................................... 483,950.1 501,357.7 492,073.4 500,440.0
Net income from the rest of the world ............... 13,416.6 13,499.4 15,375.8 15,899.8
Incomes from the rest of the world ................. 19,356.2 18,941.5 21,321.2 22,353.8
(less) Incomes to the rest of the world ............ 5,939.6 5,442.2 5,945.4 6,454.0
Gross national income (GNI) ............................. 497,366.7 514,857.1 507,449.2 516,339.8
1) Constant prices in 2005; by chain-linked method.
Source: Cabinet Office.

Subsequently, the Japanese economy came to a standstill starting around

October 2010. In early 2011, however, it began to rally. The Great East
Japan Earthquake that took place on March 11, 2011, and the nuclear
power plant accident it caused weakened the economic recovery.
In order to achieve an early end to deflation and break free of economic
stagnation, in January 2013, the Government of Japan set forth its
"three-arrows" strategy (also known as "Abenomics"). The first "arrow" is
"aggressive monetary policy." In more detail, the Bank of Japan (BOJ)
made it clear that it would set a consumer price index annual growth rate
of two percent as a "price stabilization target." At the April Monetary
Policy Meeting, the BOJ also decided to adopt "quantitative and

30
 ECONOMY

qualitative monetary easing" to double the monetary base over two years.
The second "arrow" is "flexible fiscal policy." In the sector of recovery
from the Great East Japan Earthquake, a supplemental budget was
established for fiscal 2012. Additionally, the budget for fiscal 2013 was
passed with an emphasis on polices connected with the vitalization of the
Japanese economy and security in national life. The third "arrow" is
"growth strategy that promotes private investment." Japan is strongly
committed to tackling stable growth strategy over the long term.

Figure 3.4
Economic Growth Rates (Quarterly changes) 1)
5
%

4
3
2
1
0
-1
-2
-3
-4
-5
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ

2008 09 10 11 12 13

1) 1993 SNA (2005 constant prices; chain-linked method; seasonally adjusted figures).
Source: Cabinet Office.

4. Industrial Structure
Japan's industrial structure has undergone a major transformation over the
half century since the end of World War II. The chronological changes in
the industrial structure during this period by industry share of employed
persons and GDP show that shares in the primary industry in particular
have fallen dramatically since 1970, when Japan experienced a rapid
economic growth. During the 1980s, the secondary industry's share of

31
 ECONOMY

employed persons and GDP also began to decline gradually. On the other
hand, the tertiary industry's shares of both employed persons and GDP
have risen consistently.
In 1970, the primary industry accounted for 19.3 percent of employed
persons, the secondary industry for 34.1 percent, and the tertiary industry
for 46.6 percent. In 2010, the corresponding shares of these three sectors
were 4.2 percent, 25.2 percent and 70.6 percent, respectively.
As for GDP by type of economic activity, in 1970, the primary, secondary
and tertiary industries accounted for 5.9 percent, 43.1 percent and 50.9
percent, respectively. In 2010, these figures for the primary, secondary and
tertiary industries were 1.2 percent, 25.2 percent and 73.6 percent,
respectively.

Table 3.2
Changes in Industrial Structure
(%)
1) 2)
Employed persons Gross domestic product (GDP)
Year Primary Secondary Tertiary Primary Secondary Tertiary
industry industry industry industry industry industry
1950 48.6 21.8 29.7 - - -
1955 41.2 23.4 35.5 19.2 33.7 47.0
1960 32.7 29.1 38.2 12.8 40.8 46.4
1965 24.7 31.5 43.7 9.5 40.1 50.3
1970 19.3 34.1 46.6 5.9 43.1 50.9
1975 13.9 34.2 52.0 5.3 38.8 55.9
1980 10.9 33.6 55.4 # 3.5 # 36.2 # 60.3
1985 9.3 33.2 57.5 3.0 34.9 62.0
1990 7.2 33.5 59.4 2.4 35.4 62.2
1995 # 6.0 # 31.3 # 62.7 1.8 30.4 67.8
2000 5.2 29.5 65.3 1.7 28.5 69.8
2005 4.9 26.4 68.6 # 1.2 # 25.8 # 73.0
2010 4.2 25.2 70.6 1.2 25.2 73.6
1) Due to the revision of the Japan Standard Industrial Classification, the figures from 1995
onward are not strictly consistent with those for 1990 or earlier. 2) Data from 1955 to 1979
are based on the 1968 SNA. Data from 1980 onward are based on the 1993 SNA. Data in
2005 and afterwards differs in the estimation method.
Source: Statistics Bureau, MIC; Cabinet Office.

32
 ECONOMY

Figure 3.5
Gross Domestic Product by Type of Economic Activity (2011)
(Constant prices in 2005)
%
0 20 40 60 80 100

Primary industry
Secondary industry Tertiary industry

Manufacturing Real Service

estate activities

Mining Construc- Wholesale & Finance & Transport Producers of

tion retail trade insurance government
Agriculture, forestry Information services
& fishing Electricity,
gas & water & commu-
Producers of private
supply nications
non-profit services
to households
Source: Cabinet Office.

According to the 2012 Economic Census for Business Activity

(preliminary tabulation), there were 5.47 million establishments (excluding
businesses whose operational details are unknown, national government
services, or local government services) in Japan, at which a total of 56.32
million persons were employed. The average number of persons engaged
per establishment was 10.3. Establishments with less than 10 persons
accounted for 78.6 percent of the total.

Figure 3.6
Shares of Establishments and Persons Engaged by Scale of Operation
(2012) 1)
100 persons and over 1.1
1-4 persons 5-9 10-19 20-99
▼ ▼ ▼ ▼
2)
Establishments 58.8 % 19.8 11.6 8.7

Persons engaged 12.3 % 12.5 15.1 31.4 28.6

0
0% 20 40 60 80 100 %
100%
1) Preliminary figures. 2) Excluding establishments consisting of only loaned or dispatched
employees.
Source: Statistics Bureau, MIC; Ministry of Economy, Trade and Industry.

33
 ECONOMY

The number of establishments by the major groupings of the Japan

Standard Industrial Classification was the most numerous in the
"wholesale and retail trade" category, numbering 1.42 million, followed by
"accommodations, eating and drinking services" and "construction." In
terms of the number of persons engaged, establishments in the "wholesale
and retail trade" ranked first as they employed 11.98 million persons,
followed by "manufacturing" and "medical, health care and welfare."

Table 3.3
Number of Establishments and Persons Engaged (2012) 1)
Number of
Number of
Item persons
establishments
engaged
Total ............................................................................................ 5,465,578 56,324,082
By industry
Primary industry
Agriculture, forestry and fisheries ....................................... 29,374 350,347
Secondary industry
Mining and quarrying of stone and gravel ........................... 2,441 23,518
Construction ........................................................................ 526,793 3,926,854
Manufacturing ..................................................................... 501,580 9,421,840
Tertiary industry
Electricity, gas, heat supply and water ................................. 4,163 203,980
Information and communications ........................................ 68,282 1,677,253
Transport and postal activities ............................................. 135,180 3,311,071
Wholesale and retail trade ................................................... 1,420,680 11,983,742
Finance and insurance ......................................................... 88,495 1,561,953
Real estate and goods rental and leasing ............................. 380,512 1,475,150
Scientific research, professional and technical services ...... 213,158 1,587,833
Accommodations, eating and drinking services .................. 711,428 5,419,088
Living-related and personal services and amusement services ... 476,823 2,509,998
Education, learning support ................................................. 160,406 1,723,614
Medical, health care and welfare ......................................... 352,237 6,254,178
Compound services ............................................................. 32,469 349,380
Services, n.e.c. ..................................................................... 361,557 4,544,283
By type of legal organizations
Individual proprietorship .................................................... 2,212,029 6,407,561
Corporations ........................................................................ 3,221,858 49,771,687
 Companies ........................................................................ 2,844,649 42,315,258
Organizations other than corporations ................................. 31,691 144,834
1) Preliminary figures. Excluding businesses whose operational details are unknown, national
government services, or local government services.
Source: Statistics Bureau, MIC; Ministry of Economy, Trade and Industry.

34
 ECONOMY

Japan's domestic manufacturing industry has continued to shrink amidst

ongoing economic globalization. Imports of textiles and consumer durable
goods have increased at a rapid pace in recent years, and the share of
imports from China, among other sources, has risen. Furthermore, the
structure has surfaced where Japanese companies manufacture products in
China and other Asian countries and import these products into Japan to
push down domestic prices.
According to the Cabinet Office's "FY2012 Annual Survey of Corporate
Behavior," the percentage of firms in manufacturing industries that
perform production overseas was 67.7 percent in fiscal 2011. That figure
has been at a similar level since fiscal 2007. As for why Japanese
companies carry out production at overseas locations, the most common
reason (45.8 percent) firms cited was in order to respond to product
demand in those areas and their vicinities. The next most common reason
(23.1 percent) was that labor costs are low.

Figure 3.7
Ratio of Overseas Production in the Manufacturing Sector
(Monetary basis)
%
30
Processing industry
▼
25

20 All manufacturing industries

▼

15
▲
10 Basic materials industry

5 ▲
Other manufacturing industries

0
FY1996 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Source: Cabinet Office.

35
 ECONOMY

The percentage of production overseas (in terms of sales) for Japanese

companies with foreign subsidiaries was 18.0 percent in fiscal 2011. That
represented a year-on-year decrease of 0.1 percentage points. By category,
the percentage of overseas production was the highest in transport
equipment, which was 38.6 percent, followed by 26.7 percent in
information and communication electronics equipment, and 24.8 percent in
general-purpose machinery.
Other areas increasingly drawing the attention of Japanese manufacturing
companies as capable operation locations are China, as well as India and
Indonesia. Interest in the new markets of Mexico and Myanmar is also
growing.

36
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 4
Finance

© Currency Museum
Bank of Japan

Edo period coins issued by the Tokugawa shogunate, the Keicho Koban (left) and the
Keicho Ichibukin (right).

As of the end of 2012, currency in circulation amounted to 91.23 trillion yen (86.65
trillion yen in Bank of Japan notes and 4.58 trillion yen in coins).
 FINANCE

1. National and Local Government Finance

(1) National Government Finance

Japan's fiscal year starts in April, and ends in March of the following year.
In setting the national budget, the government submits a proposed budget
for the upcoming fiscal year to the Ordinary Session of the Diet, which
begins in January. The proposal is then discussed, and an initial budget is
approved usually before the fiscal year begins in April. In the event that
the Diet does not approve the budget by the end of March, an interim
budget comes into effect. The interim budget is effective from the
beginning of April until such time when the proposed budget is approved.
If it becomes necessary to amend the budget in the course of a fiscal year,
the government submits a supplementary budget for Diet approval.

Japan's national budget consists of the general account, special accounts,

and the budget for government-affiliated agencies. Using revenues from
general sources such as taxes, the general account covers core national
expenditures such as social security, public works, culture/education/
science and national defense. Special accounts are accounts established for
the national government to carry out projects with specific objectives, and
are managed and administered independent of the general account. The
number and particulars of special accounts change from year to year; for
fiscal 2013, a total of 17 special accounts have been established, including
the national debt consolidation fund, the grants of allocation tax and
transferred tax and the Great East Japan Earthquake recovery fund.
Government-affiliated agencies are entities established by special laws and
are entirely funded by the government. Currently, the Japan Finance
Corporation, the Okinawa Development Finance Corporation, Japan Bank
of International Cooperation, and the Japan International Cooperation
Agency (Loan Aid Section) are operated as government-affiliated
agencies.

38
 FINANCE

Table 4.1
Revenue and Expenditure of National Government Finance
(Million yen)
Government-
Fiscal General Special
Net total 1) affiliated
year account accounts
agencies
Revenue
1995 80,557,216 267,813,630 193,857,594 7,656,940
2000 93,361,027 341,146,379 234,669,754 7,019,433
2005 89,000,271 452,141,039 283,201,972 4,710,476
2009 107,114,243 377,893,116 246,279,870 1,277,197
2010 100,534,563 386,984,918 245,704,270 1,204,493
2011 109,979,528 409,923,670 263,616,197 1,171,167
2)
2012 107,829,072 422,651,136 270,117,933 a) 1,913,219
3)
2013 92,611,539 408,483,086 242,892,370 1,710,227
Expenditure
1995 75,938,516 232,465,893 155,325,150 7,535,769
2000 89,321,050 305,775,944 199,466,439 6,987,740
2005 85,519,592 401,183,566 230,182,819 4,102,846
2009 100,973,424 348,060,035 212,710,083 1,530,100
2010 95,312,342 345,074,005 201,228,355 1,406,314
2011 100,715,409 376,463,171 223,614,993 1,273,618
2)
2012 107,507,482 393,203,701 242,372,755 a) 2,703,327
3)
2013 92,611,539 386,629,989 223,001,953 2,509,882
1) Net total deducting duplications of the general account and special accounts. 2) Final
estimates as of the end of January 2013. 3), a) Initial budget.
Source: Ministry of Finance.

In national government finance, expenditure has continued to surpass

revenue. Since fiscal 2008 in particular, the worsening economy has
decreased tax revenues, contributing to an increasing gap between revenue
and expenditure. Since fiscal 2009, bonds issued exceeded tax revenues in
most years, but in fiscal 2013, tax revenue exceeded borrowing (on an
initial budget basis) for the first time in four years.

The size of the general account budget for fiscal 2013 was 92.61 trillion
yen, an increase of 2.28 trillion yen (2.5 percent) from the initial budget of
fiscal 2012. This is equivalent to 19.0 percent of the fiscal 2013 GDP,
forecasted by the government at 487.7 trillion yen.

39
 FINANCE

Table 4.2
Expenditure of General Account
(Billion yen)

General
Fiscal Total expendi- Education
Social National Public
year tures and Pensions
security defense works
science
(A)+(B)+(C) (A)
1995 75,939 50,816 14,543 6,667 1,707 4,720 12,795
2000 89,321 52,046 17,636 6,872 1,418 4,907 11,910
2005 85,520 49,343 20,603 5,701 1,065 4,878 8,391
2009 100,973 65,955 28,716 6,158 781 4,811 8,353
2010 95,312 56,978 28,249 6,051 709 4,670 5,803
2011 100,715 61,637 29,778 6,036 639 4,818 5,915
2012 1) 100,537 62,107 29,450 6,416 570 4,826 6,998
2013 2) 92,612 53,977 29,122 5,369 504 4,754 5,285
Local
National
Small- and Food allocation
Fiscal Economic medium-sized Energy debt
stable Others tax grants,
year cooperation business measures service
supply etc.
promotion
(B) (C)
1995 1,034 623 708 269 7,751 12,820 12,302
2000 1,012 933 677 247 6,434 21,446 15,829
2005 784 237 493 657 6,536 18,736 17,441
2009 801 2,915 994 1,036 11,391 18,445 16,573
2010 746 830 845 1,122 7,953 19,544 18,790
2011 620 2,191 954 1,438 9,249 19,628 19,451
2012 1) 663 644 856 1,304 10,379 21,545 16,885
2013 2) 515 181 850 1,054 6,343 22,241 16,393
1) Revised budget. 2) Initial budget.
Source: Ministry of Finance.

In fiscal 2013, major expenditures from the initial general account budget
include social security (31.4 percent), national debt service (24.0 percent),
local allocation tax grants, etc. (17.7 percent), education and science (5.8
percent), public works (5.7 percent) and national defense (5.1 percent).

With regard to revenue sources for the fiscal 2013 initial general account
budget, income tax, consumption tax and corporation tax account for 35.9
percent. Even with the addition of other taxes and stamp revenues, these
revenue sources only amount to 46.5 percent of the total revenue.

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Figure 4.1
Composition of Revenue and Expenditure of General Account Budget
(Initial budget, FY2013)
Government
bond issues
46.3
Consumption
tax
11.5
Income tax
15.0
Special Tax
deficit- Revenue and
financing stamp
93 trillion
bonds revenues
40.0 yen 46.5%

Corporation
tax
Others 9.4
7.2
Construction Other taxes
bonds and stamp
6.2 revenues General
10.6 expenditures
National 58.3% Social
debt security
service 31.4
24.0

Expenditure
Local 93 trillion
allocation yen
tax grants,
etc.
17.7 Others
10.2 Education
and science
5.8
Public works
5.7
National
defense
Source: Ministry of Finance. 5.1

(2) Local Government Finance

There are two budget categories in the local government finance: the
ordinary accounts and the public business accounts. The former covers all
kinds of expenses related to ordinary activities of the prefectural and
municipal governments. The latter covers the budgets of independently

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accounted enterprises such as public enterprises (water supply and

sewerage utilities, hospitals, etc.), the national health insurance accounts
and the latter-stage elderly medical care accounts.

While expenditures such as national defense are administered solely by the

national government, a large portion of expenditures that directly relate to
the people's everyday lives are disbursed chiefly through local
governments. In particular, a high proportion of the following expenditures
are disbursed through local governments: public hygiene and sanitation
expenses, which include areas such as medical service and waste disposal;
school education expenses; expenses covering judicial, police and fire
services; and public welfare expenses, which cover the development and
management of welfare facilities for children, the elderly and the mentally
and/or physically challenged.

The revenue composition of local governments usually remains almost the

same each fiscal year, while their budget scale and structure vary from
year to year. The largest portion of fiscal 2011 (net) revenues came from
local taxes, accounting for 34.1 percent of the total. The second-largest
source, 18.7 percent, was local allocation tax grants.

Table 4.3
Local Government Finance 1) (Ordinary accounts)
(Million yen)
Item FY2007 FY2008 FY2009 FY2010 FY2011
Revenues ................................ 91,181,397 92,213,459 98,365,695 97,511,501 100,069,646
Local taxes ........................... 40,266,817 39,558,526 35,182,954 34,316,330 34,171,416
Local allocation tax grants ... 15,202,745 15,406,082 15,820,237 17,193,551 18,752,268
Treasury disbursements ....... 10,221,573 11,582,745 16,732,772 14,201,018 15,961,503
Local government bonds ..... 9,584,445 9,922,067 12,396,036 12,969,520 11,760,270
Expenditures ......................... 89,147,615 89,691,477 96,106,449 94,775,014 97,002,646
General administration ........ 8,905,803 8,919,649 10,718,365 9,999,758 9,345,975
Public welfare ...................... 16,976,069 17,821,099 19,767,874 21,316,337 23,182,534
Labor .................................... 275,910 663,040 918,764 808,224 993,750
Sanitation ............................. 5,435,815 5,390,177 5,971,517 5,812,417 6,743,245
Civil engineering work ........ 13,390,730 12,871,235 13,292,043 11,959,157 11,284,876
Education ............................. 16,431,769 16,146,676 16,438,041 16,446,685 16,176,813
1) Settled figures of the net total of prefectural and municipal government accounts after
deducting duplications.
Source: Ministry of Internal Affairs and Communications.

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(3) National and Local Government Finance

The net total indicates the actual amount of governmental expenditures

after eliminating duplications such as the transfer of funds between
different accounts in the national budget, the local allocation tax grants and
other subsidies from the national government to local governments. In the
initial budget for fiscal 2012, the gross total of national government
expenditure was 487 trillion yen, the net total was 231 trillion yen after
eliminating duplications. Furthermore, the local public finance program,
which consists of the estimated sum of ordinary accounts for the following
fiscal year for all local governments, amounted to 84 trillion yen.
Therefore, after eliminating duplications between national and local
accounts (34 trillion yen), the net total of both national and local
government expenditures combined was 281 trillion yen.

Table 4.4
Expenditures of National and Local Governments (Initial budget)
(Billion yen)
Expenditures
Item
FY1995 FY2000 FY2005 FY2010 FY2011 FY2012
General account ............. 70,987 84,987 82,183 92,299 92,412 90,334
Special accounts ............ 241,718 318,689 411,944 367,074 384,885 394,095
Government-affiliated
agencies ....................... 8,086 7,661 4,678 3,135 2,613 2,703
Gross total (national) .... 320,792 411,337 498,805 462,508 479,910 487,132
Duplications ................ 160,054 200,435 257,490 244,744 257,389 256,050
Net total (national) ........ 160,738 210,902 241,316 217,764 222,521 231,082
Local public
finance program ........... 82,509 88,930 83,769 82,127 82,505 84,276
Gross total
(national + local) ........ 243,247 299,832 325,084 299,891 305,026 315,358
Duplications ................ 32,035 37,216 32,689 31,563 32,848 34,327
Net total
(national + local) ........ 211,213 262,616 292,395 268,328 272,178 281,031
Source: Ministry of Finance.

In fiscal 2011, the net total of national and local government expenditures
was 272 trillion yen, approximately 60 percent of which, net of overlaps,

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were expenditures "directly related to people's lives." The national

government disbursed 42 percent of this amount, while the local
governments disbursed 58 percent.

Figure 4.2
Trends in Ratio of Net Total National and Local Expenditures
by Function
%
35

30 Land preservation and development Social security

25
Public bonds

20

Education
15

10 General administration

5
Commerce and industry

0
FY1995 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Source: Ministry of Internal Affairs and Communications.

A function-by-function breakdown of expenditures "directly related to

people's lives" showed that social security expenditure accounted for the
largest portion (32.7 percent), followed by public bonds (19.8 percent),
education (11.7 percent), general administration (11.7 percent), and then
land preservation and development (10.6 percent). Public bonds are issued
to compensate for shortages of national and local revenues. Their issue
volumes have increased mainly due to, for example, economic stimulus
measures and decreasing tax revenues since 1992. A rising amount of
public bond redemptions, among other factors, has resulted in public bonds
making up a high percentage of government expenditures net of overlaps.

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Figure 4.3
Trends in National Government Bond Issue 1)
Trillion yen %
60 60
Construction bonds
Special deficit-financing bonds
50 (left scale) 50

15.0 11.4
Bond dependency rate
40 (right scale) 5.8 40
7.6 8.4

13.2 6.7 8.7

30 9.1 7.0 30
11.1 7.8
9.1 6.4
6.0
20 38.0 37.1 20
36.9 34.7
34.4
28.7 26.8
24.3 25.8 26.2
21.9 20.9 23.5
10 21.1 19.3 10

0 0
FY1999 00 01 02 03 04 05 06 07 08 09 10 11 2) 12 3) 13 4)

1) Settlement basis. 2) Bond dependency rate was calculated by the revenues including
special account for reconstruction from the Great East Japan Earthquake. 3) Based on the
revised budget. 4) Based on the initial budget.
Source: Ministry of Finance.

Japan's ratio of outstanding general government debt to GDP, a stock

measure in a fiscal context, has been deteriorating rapidly due to its public
bond issues over a series of years and is now the worst among major
industrial countries.

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Figure 4.4
Ratio of General Government Gross Debt to GDP
%
240

220

200 Japan

180

160

140
Italy
U.S.A.
120

100
France
80

60 Canada

40 Germany

20 U.K.

0
2003 04 05 06 07 08 09 10 11 12 13

Source: Ministry of Finance.

(4) Tax

Taxes consist of national tax (income tax, corporation tax, etc.), which is
paid to the national government, and local tax, which is paid to the local
government of the place of residence. The ratio of taxation burden, which
is the ratio of national and local taxes to national income, was 18.3 percent
in fiscal 1975. This ratio gradually increased thereafter, reaching 27.7
percent in fiscal 1989. Since then, however, the ratio has decreased due to
the decline in tax revenue arising from the recession that ensued after the
bubble economy ended, showing 21.2 percent in fiscal 2003. In fiscal 2013,
it was 22.7 percent in terms of national and local taxes combined (13.0
percent for national tax and 9.6 percent for local tax). Japan's ratio is lower
in comparison with other major industrial countries. Nevertheless, there is
a possibility that the taxation burden will become heavier due to an
increase in welfare and pension-related spending as the population ages.

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Figure 4.5
Ratio of Taxation Burden to National Income by Country 1)
%
45

40 U.K.

35 France

30 Germany

U.S.A.
Japan
25

20

150
1993 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

1) Actual basis.
Source: Ministry of Finance.

2. Bank of Japan and Money Stock

As the central bank, the Bank of Japan (i) issues Bank of Japan notes, or
the currency of Japan; (ii) manages and stores treasury funds and provide
loans to the government; (iii) provides deposit and loan services to general
financial institutions; and (iv) implements monetary policies by adjusting
the level of money stock to promote sound development of the economy.

At the end of 2012, currency in circulation totaled 91.23 trillion yen (86.65
trillion yen in Bank of Japan notes and 4.58 trillion yen in coins), up 3.0
percent from the year before.

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Table 4.5
Currency in Circulation (Outstanding at year-end)
(Billion yen)
Item 2008 2009 2010 2011 2012

Total 86,069 85,511 86,856 88,547 91,231

Bank of Japan notes 81,478 80,954 82,314 83,997 86,653
Coins 4,590 4,556 4,541 4,550 4,578
Source: Bank of Japan.

The Bank of Japan compiles and publishes statistics on the following

indicators: (i) M1, or cash currency in circulation plus deposit money; (ii)
M2, or cash currency in circulation plus deposits in banks, etc. in Japan;
(iii) M3, or M1 plus quasi-money plus CDs (certificates of deposit); and
(iv) broadly-defined liquidity, which covers a broad range of liquidity,
including government securities. The average outstanding money stock as
of December 2012 was 546 trillion yen in M1 and 828 trillion yen in M2.

Table 4.6
Money Stock 1) (Average outstanding)
(Billion yen)
Broadly-
End of year M2 M3 M1 Quasi-money CDs defined
liquidity
2008 741,733 1,040,645 481,755 536,253 22,636 1,434,568
2009 764,435 1,063,518 486,668 551,162 25,688 1,453,282
2010 782,288 1,082,937 501,479 550,529 30,929 1,452,732
2011 806,988 1,111,527 528,018 552,697 30,812 1,455,050
2012 827,825 1,135,987 545,729 557,274 32,983 1,466,133
1) "Money stock" indicates the balance of currency held by corporations, individuals, local
governments, etc.
Source: Bank of Japan.

In January 2013, the Government and the Bank of Japan decided to

strengthen policy coordination in order to overcome deflation and achieve
sustainable economic growth with stable prices. In order to achieve price
stability targets at the earliest possible time, in April 2013, the Bank of
Japan changed the operating target for money market operations from the

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uncollateralized overnight call rate to a monetary base to facilitate

quantitative easing. Japan's monetary base is the amount of currency
supplied by the Bank of Japan. It is the combined total of banknotes in
circulation, coins in circulation, and current account balances. Under the
new policy of monetary easing, the monetary base was 155.28 trillion yen
as of the end of April 2013 (26.2 percent higher than one year earlier). It
was the second consecutive month with a record high.

Table 4.7
Financial Markets (Interest rates, etc.)
(% per annum)
Basic discount 10 years' Govt.
Prime lending Loan contract
End of year rate and basic Call rates 1) bonds yields
rates 2) rates 3)
loan rate to subscribers
2003 0.10 0.001 1.375 1.464 1.380
2004 0.10 0.002 1.375 1.399 1.445
2005 0.10 0.004 1.375 1.270 1.456
2006 0.40 0.275 1.625 1.450 1.634
2007 0.75 0.459 1.875 1.673 1.478
2008 0.30 0.103 1.675 1.494 1.382
2009 0.30 0.094 1.475 1.256 1.246
2010 0.30 0.079 1.475 1.187 1.189
2011 0.30 0.075 1.475 1.102 1.085
2012 0.30 0.076 1.475 1.034 0.730
1) Uncollateralized overnight. 2) Short-term loans. 3) Average of short-term loan contracts
of domestically licensed banks.
Source: Bank of Japan.

3. Financial Institutions

In addition to the Bank of Japan, Japan's financial system is comprised of

private and public financial institutions. Private financial institutions
include those that accept deposits (banks, credit depositories, agricultural
cooperatives, etc.) and those that do not (securities companies, insurance
companies, etc.).

As to the latest number of offices, including the branches of financial

institutions operated domestically, post offices handling postal savings had
the largest network with 24,230 offices. This was followed by domestically

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licensed banks, including city banks and regional banks, with a combined
total of 13,389 offices and branches. Securities companies operated at
2,139 offices including branches. In the course of the financial system
reform, mergers and restructuring progressed among major banks,
resulting in their being reorganized into three major financial groups.
Regional banks and credit depositories operating in their respective
regions have been making their efforts to expand operations base through
corporate mergers, but there were no major mergers recently.

Table 4.8
Number of Financial Institutions
Reference Head Overseas
Institutions Total Branches
date offices offices
Domestically licensed banks
City banks ....................................... Sep. 2012 2,523 6 2,397 120
Regional banks ................................ Sep. 2012 7,513 64 7,434 15
Regional banks II ............................ Sep. 2012 3,072 41 3,030 1
Trust banks ...................................... Sep. 2012 281 4 268 9
Financial institutions for small business
Credit depositories .......................... Feb. 2013 7,508 270 7,238 -
Credit cooperatives ......................... Feb. 2013 1,723 157 1,566 -
Securities companies 1) ......................... Feb. 2013 2,139 263 1,876 -
Agricultural cooperatives ..................... Mar. 2012 8,587 - - -
Post offices ........................................... Mar. 2013 24,230 - - -
1) Excluding branch offices of foreign securities firms in Japan.
Source: Japanese Bankers Association; Shinkin Central Bank Research Institute;
Community Bank Shinyo Kumiai; Japan Securities Dealers Association; The Norinchukin
Bank; Japan Post Co., Ltd.

For a long time, the business role of each type of financial institution had
been clearly divided and regulated by specialized systems. However, the
deregulation and reform of financial systems produced dramatic changes,
eventually causing significant alterations in the financial system. A rapid
surge in asset prices from the mid-1980s and the following correction of
asset prices in the 1990s created a massive expansion of loans and huge
bad debts in their wake. In the financial crisis between 1997 and 1998,
several large financial institutions went bankrupt. This prompted
legislative enactments in 1998 that were intended to stabilize the financial
system, which accelerated the implementation of measures to deal with

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bankrupt financial institutions, including temporary nationalization. As a

result, the overdue task of addressing bad debts was finally laid to rest.

In order to lead a revival of the nation's economy by solving the bad debt
problems of major banks, the government launched the Program for
Financial Revival in October 2002, demanding that major banks reduce
their ratio of bad debts from 8.4 percent in March 2002 to approximately
half that level by March 2005. As a result, the ratio of the major banks' bad
debts decreased to 2.9 percent in March 2005, meeting the government's
target, and the bad debt problems have thus been settled. The ratio
recorded in March 2013 was 1.8 percent.

4. Financial Assets

The Flow of Funds Accounts Statistics, which is a comprehensive set of

records of financial transactions, assets and liabilities, indicates that
financial assets in the domestic sectors totaled 6,118 trillion yen according
to preliminary figures at the end of March 2013. Of these assets, those of
the domestic nonfinancial sector were 3,014 trillion yen. The household
sector (including the business funds of individual proprietorships) had
assets of 1,571 trillion yen, in the forms of deposits, stocks and other
financial assets. In Japan, the household sector holds more than 50 percent
of its financial assets in cash or relatively secure forms of assets.

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Table 4.9
Financial Assets and Liabilities of Japan
(Billion yen)
Annual
March March
Sectors growth
2012 2013 *
(%)
Financial assets
Domestic sectors ............................................................ 5,825,242 6,117,786 5.0
Financial institutions .................................................. 2,917,589 3,103,595 6.4
Domestic nonfinancial sector ..................................... 2,907,653 3,014,192 3.7
Nonfinancial corporations ...................................... 860,549 891,449 3.6
General government ............................................... 484,563 503,219 3.9
Households (incl. individual proprietorships) ........ 1,516,602 1,570,599 3.6
Private nonprofit institutions serving households .. 45,939 48,925 6.5
Overseas ......................................................................... 366,281 435,746 19.0
Financial liabilities
Domestic sectors ............................................................ 5,540,857 5,809,277 4.8
Financial institutions .................................................. 2,867,202 3,008,740 4.9
Domestic nonfinancial sector ..................................... 2,673,654 2,800,538 4.7
Nonfinancial corporations ...................................... 1,210,129 1,286,543 6.3
General government ............................................... 1,071,403 1,121,200 4.6
Households (incl. individual proprietorships) ........ 364,052 363,670 -0.1
Private nonprofit institutions serving households .. 28,070 29,124 3.8
Overseas ......................................................................... 644,277 737,480 14.5
Source: Bank of Japan.

5. Stock Market

Stock prices in Japan rose sharply in the second half of the 1980s,
spearheading the bubble economy. However, the stock market started to
fall in 1990 ahead of land prices. At the end of 1989, the total market value
of the first section of the Tokyo Stock Exchange was 591 trillion yen, but
only three years later, at the end of 1992, it dropped by more than 50
percent to 281 trillion yen. The market recovered to reach 442 trillion yen
at the end of 1999, later dipped again, and increased to 539 trillion yen at
the end of 2006. The subprime mortgage problem surfaced after August
2007 and the September 2008 Lehman shock led to a fall in the total
market value, which amounted to 251 trillion yen at the end of 2011. In
2012, the Japanese economy appeared to be entering a period of slowdown,
but towards the end of the year, confidence inspired by the new
Government's anti-deflationary economic and fiscal policies led to a
correction of the high yen, and share prices soared. The Bank of Japan's

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policy changes announced in April 2013 were seen as an ingredient

leading to the stock market's recovery, with the Nikkei Stock Average
climbing to 13, 860.86 yen as of the end of April.

Figure 4.6
Trends in Stock Price Index and Total Market Value
(Tokyo Stock Exchange, first section)

Trillion yen
700 5,000

600 TOPIX 1)
（right scale) 4,000
500
Total market value 2)
(left scale)
3,000
400

300
2,000

200
1,000
100

0 0
1986 88 90 92 94 96 98 00 02 04 06 08 10 12

1) Index of the total market value of all stocks listed on the first section of the Tokyo Stock
Exchange against a base value of 100 as of January 4, 1968. 2) End of year.
Source: Tokyo Stock Exchange.

At the end of March 2013, the total number of individual stockholders

(individuals of Japanese nationality and domestic groups without corporate
status) in possession of stocks listed on the Tokyo/Osaka/Nagoya/
Fukuoka/Sapporo Stock Exchanges totaled 46.0 million. In value terms,
the ratio of stocks they possessed was 20.2 percent. The ratio of Japanese
stocks held by foreign investors (total of corporations and individuals) was
28.0 percent in value terms, the highest ever recorded. Records also show
that Internet trading remained on a strong growth path.

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A survey conducted of 254 securities firms by the Japan Securities Dealers

Association (JSDA) showed that 22.4 percent of those companies offered
Internet trading at the end of March 2013. Internet trading thus accounted
for 31.7 percent of the total value of stock brokerage transactions from the
period of October 2012 to March 2013.

Table 4.10
Stock Prices (Tokyo Stock Exchange, first section)

Number
Total Total TOPIX 2) Nikkei
market trading Tokyo stock Stock Average
Year of listed
value 1)
1)
value price index, (225 issues)
companies 1)
(million yen) (million yen) average (yen)
1998 1,340 267,783,547 96,001,269 1,178.14 13,842.17
1999 1,364 442,443,338 178,041,139 1,388.63 18,934.34
2000 1,447 352,784,685 242,632,346 1,545.22 13,785.69
2001 1,491 290,668,537 199,844,292 1,195.10 10,542.62
2002 1,495 242,939,136 190,869,955 979.49 8,578.95
2003 1,533 309,290,031 237,905,753 918.86 10,676.64
2004 1,595 353,558,256 323,918,214 1,120.07 11,488.76
2005 1,667 522,068,129 459,136,406 1,270.09 16,111.43
2006 1,715 538,629,548 644,308,788 1,625.92 17,225.83
2007 1,727 475,629,039 735,333,528 1,663.69 15,307.78
2008 1,715 278,988,813 568,538,950 1,187.82 8,859.56
2009 1,684 302,712,168 368,679,737 869.33 10,546.44
2010 1,670 305,693,030 354,598,763 885.43 10,228.92
2011 1,672 251,395,748 341,587,524 820.80 8,455.35
2012 1,695 296,442,945 306,702,280 768.64 10,395.18
2013 Jan. 1,697 324,714,528 41,843,108 901.20 11,138.66
Feb. 1,699 337,490,278 45,867,257 961.02 11,559.36
Mar. 1,709 359,766,497 50,788,121 1,028.55 12,397.91
Apr. 1,712 404,650,096 71,229,092 1,110.41 13,860.86
1) End of year or month. 2) Index of the total market value of all stocks listed on the first
section of the Tokyo Stock Exchange against a base value of 100 as of January 4, 1968.
Source: Nihon Keizai Shimbun, Inc.; Tokyo Stock Exchange.

54
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 5
Agriculture, Forestry and Fisheries

© OKAMURA Hiroko

Terraced rice fields in Suo-oshima-cho, Yamaguchi Prefecture. As well as being a site

for agricultural production, these terraced rice fields fulfill beneficial functions such
as preventing floods and providing habitat for small animals. A conservation
movement to ensure the terraced rice fields are passed on to the next generation has
begun. In 2011, Japan produced 8.40 million tons of rice.
 AGRICULTURE, FORESTRY AND FISHERIES

1. Overview of Agriculture, Forestry and Fisheries

Over the course of Japan's economic growth, its agricultural, forestry and
fishing industries employ fewer and fewer workers every year, and their
GDP share has also dropped. The number of workers decreased from 14.39
million in 1960 (32.7 percent of the total workforce) to 2.38 million in
2010 (4.2 percent), and the GDP share of the industries fell from 12.8
percent in 1960 to 1.2 percent in 2010.

Table 5.1
Agricultural, Forestry and Fisheries Output
(Billion yen)
Item 2007 2008 2009 2010 2011
Total ................................................. 10,353 10,539 10,073 10,026 10,084
 Agriculture .................................... 8,259 8,466 8,190 8,121 8,246
  Crops .......................................... 5,720 5,820 5,590 5,513 5,639
Rice ......................................... 1,790 1,901 1,795 1,552 1,850
Vegetables ............................... 2,089 2,111 2,085 2,249 2,134
Fruits and nuts ......................... 756 741 698 750 743
  Livestock and its products .......... 2,479 2,585 2,547 2,553 2,551
Beef cattle ............................... 485 459 482 464 463
Dairy cattle .............................. 731 748 791 773 751
Pigs ......................................... 523 579 512 529 536
Chickens ................................. 676 744 709 735 753
 Forestry ......................................... 441 445 412 422 417
 Fisheries ........................................ 1,653 1,628 1,470 1,483 1,421
Source: Ministry of Agriculture, Forestry and Fisheries.

2. Agriculture
(1) Agricultural Production
Japan's total agricultural output in 2011 was 8.25 trillion yen, up 1.5
percent from the previous year. Crops yielded 5.64 trillion yen, up 2.3
percent from the previous year. This was because of higher rice output due
to rising prices, notwithstanding a decline in the output of vegetables,
fruits and nuts due to falling prices.

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 AGRICULTURE, FORESTRY AND FISHERIES

Table 5.2
Agricultural Production
(Thousand tons)
Products 1995 2000 2005 2010 2011
Cereal grains
Rice ............................................ 10,748 9,490 9,074 8,483 8,402
Wheat ......................................... 444 688 875 571 746
Vegetables, potatoes and legumes
Potatoes ...................................... 3,365 2,898 2,752 2,290 2,387
Sweet potatoes ............................ 1,181 1,073 1,053 864 886
Soybeans, dried .......................... 119 235 225 223 219
Cucumbers .................................. 827 767 675 588 585
Tomatoes .................................... 753 806 759 691 703
Cabbages .................................... 1,544 1,449 1,364 1,360 1,375
Chinese cabbages ....................... 1,163 1,036 924 889 897
Onions ........................................ 1,278 1,247 1,087 1,042 1,070
Lettuces ...................................... 537 537 552 538 542
Japanese radishes ....................... 2,148 1,876 1,627 1,496 1,493
Carrots ........................................ 725 682 615 596 617
Fruits
Mandarin oranges ....................... 1,378 1,143 1,132 786 928
Apples ........................................ 963 800 819 787 655
Grapes ........................................ 250 238 220 185 173
Japanese pears ............................ 383 393 362 259 286
Industrial crops
Crude tea .................................... a) 80 a) 85 100 85 a) 82
Sugar beets 1) .............................. 3,813 3,673 4,201 3,090 3,547
1), a) Figures are total of main producing prefectures.
Source: Ministry of Agriculture, Forestry and Fisheries.

Table 5.3
Production Volumes of Meat, Milk and Eggs
(Tons)
Products 1995 2000 2005 2010 2011
Pork ....................... 1,322,065 1,270,685 1,244,963 1,292,451 1,267,378
Beef ....................... 600,099 529,674 498,428 514,078 499,615
Veal ....................... 806 629 1,042 881 755
Horse meat ............ 8,433 7,215 7,129 5,880 4,868
Mutton and lamb ... 208 112 126 … …
Goat meat .............. 153 155 73 … …
Broilers .................. 1,631,060 1,551,101 1,702,001 1,835,091 1,783,393
Cow milk ............... 8,382,162 8,497,278 8,285,215 7,720,456 7,474,309
Eggs ....................... 2,550,586 2,540,075 2,481,000 2,515,323 2,482,628
Source: Ministry of Agriculture, Forestry and Fisheries.

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 AGRICULTURE, FORESTRY AND FISHERIES

(2) Farmers and Farmland

In 2010, the number of farm households engaged in commercial farming
(which refers to households with cultivated land under management of 0.3
hectares and over, or with annual sales of agricultural products amounting
to 500,000 yen and over) was 1.63 million. Of these commercial farm
households, 27.7 percent were full-time farm households, 13.8 percent
were part-time farm households with farming income exceeding
non-farming income, and 58.6 percent were part-time farm households
with non-farming income exceeding farming income.
Of the commercial farm household members, 2.61 million people were
actually engaged in farming (commercial farmers) in 2010, of whom 61.6
percent were aged 65 years and over.
In 2011, the total income per commercial farm household was 4.63 million
yen, down 0.6 percent from the previous year. Of that amount, 1.20 million
yen was from farming income, 1.60 million yen from non-farming income,
and 1.83 million yen from pension benefits and other sources.

Table 5.4
Commercial Farm Households and Commercial Farmers
(Thousands)
Commercial farm households
Part-time Aged 65
Commercial
Year Total years and
Full-time Mainly Mainly farmers
over
farming other job
(%)
1990 2,971 473 521 1,977 4,819 33.1
1995 2,651 428 498 1,725 4,140 43.5
2000 2,337 426 350 1,561 3,891 52.9
2005 1,963 443 308 1,212 3,353 58.2
2010 1,631 451 225 955 2,606 61.6
Source: Ministry of Agriculture, Forestry and Fisheries.

Japan's cultivated acreage shrank year after year from 6.09 million
hectares in 1961 to 4.55 million hectares in 2012. In the one-year period of
2012, there were 5,620 hectares of new cultivation but also a
17,400-hectare decrease. The most common cause for the decrease was
cultivation abandonment, accounting for approximately 40 percent of all

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 AGRICULTURE, FORESTRY AND FISHERIES

cases, followed by land-use conversion for residential and other lands,

making up approximately 30 percent.

3. Forestry
Japan's forest land area is 25.08 million hectares (approximately 70
percent of its entire surface area). Of this, natural forests account for 55
percent while planted forests, most of which are conifer plantations, make
up 45 percent. Meanwhile, Japan's forest growing stock is 4,901 million
cubic meters, of which 3,192 million cubic meters are from planted forests.
Forests that were planted after World War II are now finally ready for use.
The functions that forests play in soil conservation and the prevention of
global warming need to be exercised in a sustainable manner by smoothly
following the cycle of cutting, planting and tending planted forests.

Table 5.5
Forest Land Area and Forest Resources (2012) 1)
National Non-national forest
Item Total
forest Municipal Private
Forest land area (million ha) .............. 25.1 7.7 2.9 14.5
Forest growing stock (million m3) ..... 4,901 1,152 558 3,191
Planted forest
Land area (million ha) ................. 11.3 2.8 1.4 7.0
3
Growing stock (million m ) ......... 3,192 539 372 2,280
Natural forest
Land area (million ha) ................. 13.8 4.9 1.5 7.5
Growing stock (million m3) ......... 1,709 613 185 911
1) Preliminary figures.
Source: Ministry of Agriculture, Forestry and Fisheries.

Domestic wood supply (log conversion) totaled 19.7 million cubic meters
in 2012, which is equivalent to 37.3 percent of the peak in 1967 (52.7
million cubic meters). In 2012, Japan's self-sufficiency rate for lumber was
27.9 percent. Currently, Japan depends mostly on imported lumber for
pulp, woodchip and plywood material.

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 AGRICULTURE, FORESTRY AND FISHERIES

The slowdown in domestic lumber production activities has resulted in a

decline in the number of workers engaged in forestry. In 2010, there were
69,000 workers engaged in forestry, a level that represented the same
number recorded ten years before. However, approximately one out of six
workers was aged 65 and over, highlighting the aging of the labor force.

Figure 5.1
Industrial Wood Supply and Self-Sufficiency Rate 1)

Million cubic meters %

140 100
Self-sufficiency rate of wood Imported wood
(right scale) Domestic wood
120
(left scale)
80

100

60
80

60
40

40

20
20

0 0
1960 65 70 75 80 85 90 95 00 05 10

1) The volume in log equivalent.

Source: Ministry of Agriculture, Forestry and Fisheries.

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 AGRICULTURE, FORESTRY AND FISHERIES

4. Fisheries
(1) Fishery Production
In Japan, a country surrounded by ocean, the fishing industry has played
an important role in supplying animal protein and bringing a healthy and
rich diet to the population. Recently, however, there has been a progressing
"shift away from fish," particularly among the younger generations. On the
other hand, aging of fishing boats and fishery workforce is bringing
concern that fishery resources in surrounding waters in Japan are not fully
utilized.
Japan's fishery output has been on the decline since 1989. Its 2012 fishery
production totaled 4.84 million tons. Of this, marine fishery and
aquaculture production amounted to 4.77 million tons.

Figure 5.2
Production by Type of Fishery

Million tons
14

12

10
Inland water
fisheries and
8 aquaculture

6 Marine
aquaculture
4
Coastal fisheries
2
Offshore fisheries

0 Pelagic fisheries
1985 90 95 00 05 10 111) 12

1) Excluding figures lost in Iwate, Miyagi and Fukushima prefectures because of the Great East
Japan Earthquake.
Source: Ministry of Agriculture, Forestry and Fisheries.

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 AGRICULTURE, FORESTRY AND FISHERIES

Table 5.6
Production by Fishery Type and Species
(Thousand tons)
1) *
Fishery type and species 2000 2005 2010 2011 2012
Total ......................................... 6,384 5,765 5,312 4,765 4,841
Marine fisheries ..................... 5,022 4,457 4,121 3,823 3,731
Tunas .................................. 286 239 208 201 201
Bonito ................................. 341 370 303 262 280
Sardine ................................ 150 28 70 176 134
Mackerels ............................ 346 620 492 393 440
Alaska pollack .................... 300 194 251 239 229
Crabs ................................... 42 34 32 30 30
Squids ................................. 624 330 267 298 214
Marine aquaculture ................ 1,231 1,212 1,111 869 1,043
Yellowtails .......................... 137 160 139 146 159
Oysters ................................ 221 219 200 166 165
Laver ................................... 392 387 329 292 341
Wakame Sea weed .............. 67 63 52 19 49
Pearl (tons) .......................... 30 29 21 20 19
Inland water fisheries ............. 71 # 54 # 40 34 33
Salmons and trouts .............. 17 19 # 14 12 14
Sweetfish ............................ 11 #7 #3 3 3
Shellfishes ........................... 20 # 14 # 14 13 11
Inland water aquaculture ........ 61 # 42 39 39 34
Eel ....................................... 24 19 21 22 17
Trouts .................................. 15 12 9 8 8
Common carp ..................... 11 4 4 3 3
1) Excluding figures lost in Iwate, Miyagi and Fukushima prefectures because of the Great
East Japan Earthquake.
Source: Ministry of Agriculture, Forestry and Fisheries.

(2) Fishery Workers

The number of workers in the marine fishery industry (the workers who
engage in work at sea for 30 days or more yearly) has been decreasing
constantly. In 2012, there was a 2.4 percent decrease from the previous
year, bringing the count to 174,000 workers (excluding Iwate, Miyagi and
Fukushima prefectures). Among male workers, the ratio of those aged 65
years and over was 36.4 percent, showing the progressive trend of an aging
workforce.

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 AGRICULTURE, FORESTRY AND FISHERIES

Table 5.7
Number of Enterprises and Workers Engaged in the Marine Fishery/
Aquaculture Industry
Enterprises Workers
Year Individual Corporate Self-
Total Total Hired
households entities employed
2000 145,930 137,690 8,240 260,200 … …
2005 126,020 118,930 7,090 222,170 … …
2010 103,740 98,300 5,440 202,880 128,270 74,610
 20111) 91,170 86,150 5,020 177,870 111,960 65,910
 20121) 88,880 83,950 4,940 173,660 108,560 65,090
1) Excluding Iwate, Miyagi and Fukushima prefectures.
Source: Ministry of Agriculture, Forestry and Fisheries.

5. Self-Sufficiency in Food
Japan's food self-sufficiency rate, in terms of calories, was 39 percent in
fiscal 2011, versus 73 percent in fiscal 1965. The principal cause for the
major drop in the food self-sufficiency rate is the fact that a significant
change in the diet of Japanese led to a lower consumption of rice, a crop in
which Japan is self-sufficient, while there was an increase in consumption
of livestock products and fats that domestic agricultural production alone
cannot supply sufficiently.
In fiscal 2011, the self-sufficiency rate (on an item-specific weight basis)
was 100 percent in rice, 11 percent in wheat, 9 percent in beans, 79 percent
in vegetables, 38 percent in fruits, 54 percent in meat and 58 percent in
seafood. Although completely self-sufficient in rice, the staple food of its
people, Japan relied almost entirely on imports for wheat and bean supply.

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 AGRICULTURE, FORESTRY AND FISHERIES

Table 5.8
Supply of Cereal Grains
Supplies for domestic
Area planted Production Yield per Imports
Fiscal year consumption
(1,000 ha) (1,000 t) hectare (t) (1,000 t)
(1,000 t)
Rice
1995 2,118 10,748 5.07 495 10,290
2000 1,770 9,490 5.36 879 9,790
2005 1,706 8,998 5.27 978 9,222
2010 1,628 8,554 5.25 831 9,018
2011* 1,576 8,566 5.44 997 9,018
Wheat
1995 151 444 2.93 5,750 6,355
2000 183 688 3.76 5,688 6,311
2005 214 875 4.10 5,292 6,213
2010 207 571 2.76 5,473 6,384
2011* 212 746 3.53 6,480 6,701
Source: Ministry of Agriculture, Forestry and Fisheries.

Figure 5.3
5.2
Self-Sufficiency Rates for Selected Categories of Agricultural Produce
Wheat
Wheat Fruits
Fruits Meats
Meats
Milliontons
Million tons %
12 100
100
% 80
80
Domestic supply
10 Domestic
(left scale)supply
Production
Production(left scale)
60
60
(left
(leftscale)
scale) 40
40
Self-sufficiency
8
rate (right scale) 20
20
00
6
20
20
40
40
4
60
60

2 80
80
100
100
0 120
120
FY06 11* FY1990
FY06 0707 080809 0910 10
FY2006
FY1990 FY06 11* FY1990
FY06 0707 08 0809 0910 10
FY2006 FY06
FY06 0707 08 0809 09
FY2006 10*
10 11

Source: Ministry of Agriculture, Forestry and Fisheries.

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 AGRICULTURE, FORESTRY AND FISHERIES

Japan's present food self-sufficiency rate is the lowest among major

industrialized countries, and Japan is thus the world's largest net importer
of agricultural products since 1984.

Figure 5.4
Trends in Food Self-Sufficiency Rates of Major Countries 1)
(In terms of calories)
%
250

200 Canada
▼

150
France
▼
▲
U.S.A. Germany
100
U.K.
▼
Switzerland
▼
50

Japan

0
1998 99 00 01 02 03 04 05 06 07 08 09
1) Estimates.
Source: Ministry of Agriculture, Forestry and Fisheries.

65
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 6
Manufacturing and Construction

© OZAWA Kikue

A petroleum complex in Yokkaichi-shi, Mie Prefecture. Home to industries such as

petrochemicals, semiconductors, motor vehicles, and foods, Yokkaichi-shi is one of
Japan's leading industrial cities. Even there, however, a trend towards industrial
hollowing out has been noticeable since the 1990s.
 MANUFACTURING AND CONSTRUCTION

1. Overview of the Manufacturing Sector

The proportion of added value produced in Japan's manufacturing sector to
its nominal GDP has still been around 20 percent recently, the sector has a
large ripple effect on other sectors.
In Japan, the September 2008 Lehman Brothers bankruptcy (the "Lehman
Shock") led to a sharp drop in worldwide demand for the mainstays of
Japan's manufacturing industries, namely, consumer durables such as
automobiles and capital goods such as machine tools. Additionally, in 2011,
the Great East Japan Earthquake, the historically high yen, and the slowing
global economy contributed to sluggish domestic production. Anxiety
about industrial hollowing out increased. A concern for the future is the
declining competitiveness of Japanese manufacturing industries both in
Japan and abroad.

Figure 6.1
Composition of Establishments, Persons Engaged and Value of
Manufactured Goods Shipments by Sector (2011) 1)
%
0 20 40 60 80 100

Establish-
ments

Persons
engaged

Value of
Machinery Chemicals Metals Food Others
shipments

Textile

1) Preliminary figures. Establishments with four or more persons engaged.

Source: Statistics Bureau, MIC; Ministry of Economy, Trade and Industry.

67
 MANUFACTURING AND CONSTRUCTION

Table 6.1
Number of Establishments, Persons Engaged and Value of Manufactured
Goods Shipments of the Manufacturing Industry (2011) 1)
Value of manu-
Number of Number of
factured goods
Industries establish- persons shipments
ments engaged
(billion yen)
Manufacturing ................................................................... 232,161 7,452,940 285,023
Food ................................................................... 29,630 1,038,545 24,198
Beverages, tobacco and feed .............................. 4,679 99,388 9,479
Textile mill products .......................................... 16,752 293,110 3,947
Lumber and wood products 2) ............................ 6,638 96,736 2,214
Furniture and fixtures ......................................... 7,022 99,766 1,702
Pulp, paper and paper products .......................... 6,743 188,695 6,839
Printing and allied industries ............................. 14,099 287,177 5,589
Chemical and allied products ............................. 4,999 329,435 25,892
Petroleum and coal products .............................. 1,037 25,960 16,547
3)
Plastic products ............................................... 14,334 405,229 10,972
Rubber products ................................................. 2,815 115,691 3,042
Leather tanning, leather products and fur skins ....... 1,773 24,100 366
Ceramic, stone and clay products ...................... 11,206 244,131 7,198
Iron and steel ...................................................... 4,926 218,849 18,608
Non-ferrous metals and products ....................... 3,210 136,996 9,031
Fabricated metal products .................................. 29,469 568,652 12,058
General-purpose machinery ............................... 7,692 310,877 10,384
Production machinery ........................................ 21,499 552,090 15,571
Business oriented machinery ............................. 4,814 201,577 6,634
Electronic parts, devices and electronic circuits....... 5,382 445,988 15,661
Electrical machinery, equipment and supplies ... 10,163 472,893 15,145
Information and communication electronics
equipment ......................................................... 1,899 193,994 9,797
Transport equipment .......................................... 11,961 945,050 50,465
Miscellaneous manufacturing industries ............ 9,419 158,011 3,684

1) Preliminary figures. Establishments with four or more persons engaged. 2) Excluding

furniture. 3) Excluding plastic furniture, plastic plate making for printing, etc., which are
included in other industrial classification.
Source: Statistics Bureau, MIC; Ministry of Economy, Trade and Industry.

In 2011, there were 232,161 establishments (with four or more persons

engaged) and a total of 7.45 million persons engaged in the manufacturing
sector. These establishments shipped 285.0 trillion yen worth of
manufactured products, with added value amounting to 91.4 trillion yen.

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 MANUFACTURING AND CONSTRUCTION

Based on the Indices on Mining and Manufacturing (2005 average = 100),

the production index for 2012 was 91.9, down 0.3 percent from the
previous year, while shipments stood at 92.5, an increase of 0.1 percent
from the year before.

Table 6.2
Indices on Mining and Manufacturing (2012)
(2005 average = 100)
1)
Production Shipments Inventory 2) Inventory Ratio 3)
Industries Annual Annual Annual Annual
growth growth growth growth
(%) (%) (%) (%)
Mining and manufacturing .. 91.9 -0.3 92.5 0.1 103.8 3.5 122.3 6.3
Manufacturing ........................ 91.9 -0.2 92.5 0.1 103.8 3.5 122.3 6.3
Food and tobacco ................. 102.1 0.1 101.6 2.4 72.5 2.3 103.7 -7.3
Textile .................................. 66.2 -3.1 72.8 -1.4 82.2 2.6 112.2 6.6
Pulp, paper and paper
products ............................... 84.2 -2.2 85.5 -2.3 97.0 9.2 127.8 21.4
Chemicals ............................. 104.1 -0.1 97.8 -0.7 100.9 0.1 119.1 5.4
Chemicals (excl. Drugs) ....... 86.3 -3.7 84.5 -3.4 100.9 0.1 119.1 5.4
Petroleum and coal
products ............................... 85.4 -0.6 86.0 -0.1 89.6 0.2 113.9 -0.9
Plastic products .................... 88.6 1.1 87.5 1.6 94.6 -2.6 110.8 1.1
Ceramic, stone and clay
products .............................. 86.4 2.9 85.0 3.7 93.8 -1.3 123.2 -2.7
Iron and steel ........................ 90.8 -0.3 91.4 -0.2 100.4 -3.6 111.1 -0.9
Non-ferrous metals ............... 88.8 2.8 86.9 1.8 110.9 2.0 121.5 -1.4
Fabricated metals .................. 81.6 0.1 81.0 -0.6 87.9 11.0 114.6 8.4
General machinery ............... 86.4 -6.2 85.6 -5.0 106.0 7.6 121.0 13.8
Electronic parts and devices ..... 106.6 -6.8 115.2 -1.4 233.2 0.9 233.1 4.9
Electrical machinery ............. 90.6 -4.5 93.2 -4.1 161.2 21.5 129.3 16.2
Information and communication
electronics equipment ............... 61.9 -12.8 74.0 -25.3 104.9 -12.5 183.6 62.6
Transport equipment ............ 95.5 12.0 96.0 11.4 83.4 19.0 96.2 4.8
Precision instruments ........... 113.3 -1.6 109.6 -0.5 144.3 9.2 121.0 16.3
Other manufacturing ............ 85.4 -0.6 84.4 0.1 88.5 2.5 119.5 0.2
Mining .................................... 92.1 1.4 103.8 -1.0 110.4 6.9 116.2 -2.3

(Reference)
Electricity and gas .................. 99.4 0.6 99.8 0.8 - - - -
1) Value added weights. 2) End of the year.
3) Inventory ratio = Inventory quantity / Shipments quantity
Source: Ministry of Economy, Trade and Industry.

69
 MANUFACTURING AND CONSTRUCTION

Table 6.3
Indices of Industrial Production 1)
(2005 average = 100)

Annual
Industries 2009 2010 2011 2012 growth
(%)
Mining and manufacturing ..................... 81.1 94.4 92.2 91.9 -0.3
Manufacturing ....................................... 81.0 94.5 92.1 91.9 -0.2
Food and tobacco .............................. 102.3 102.4 102.0 102.1 0.1
Textile ............................................... 67.1 67.9 68.3 66.2 -3.1
Pulp, paper and paper products ......... 85.8 89.1 86.1 84.2 -2.2
Chemicals .......................................... 95.3 100.8 104.2 104.1 -0.1
Chemicals (excl. Drugs) .................... 85.3 93.0 89.6 86.3 -3.7
Petroleum and coal products ............. 90.2 91.1 85.9 85.4 -0.6
Plastic products ................................. 82.1 89.8 87.6 88.6 1.1
Ceramic, stone and clay products ..... 76.8 85.2 84.0 86.4 2.9
Iron and steel ..................................... 72.5 93.8 91.1 90.8 -0.3
Non-ferrous metals ............................ 77.4 90.5 86.4 88.8 2.8
Fabricated metals .............................. 77.9 83.1 81.5 81.6 0.1
General machinery ............................ 60.3 82.8 92.1 86.4 -6.2
Electronic parts and devices .............. 100.0 126.3 114.4 106.6 -6.8
Electrical machinery ......................... 78.9 94.4 94.9 90.6 -4.5
Information and communication
electronics equipment ...................... 83.4 91.6 71.0 61.9 -12.8
Transport equipment ......................... 74.6 94.5 85.3 95.5 12.0
Precision instruments ........................ 84.6 105.1 115.1 113.3 -1.6
Other manufacturing ......................... 80.8 86.9 85.9 85.4 -0.6
Mining ................................................... 93.6 90.0 90.8 92.1 1.4

(Reference)
Electricity and gas ................................. 96.9 103.0 98.8 99.4 0.6
1) Value added weights.
Source: Ministry of Economy, Trade and Industry.

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 MANUFACTURING AND CONSTRUCTION

Figure 6.2
Trends in Indices on Mining and Manufacturing 1) (2005 average = 100)

160

140

Inventory ratio 4)
▼
120 Shipments
▼

Inventory 3)
100
▼
▲
Production 2)
80

60
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ
2006 07 08 09 10 11 12

1) Seasonal adjustment indices. 2) Value added weights. 3) End of the quarter.

4) Inventory ratio = Inventory quantity / Shipments quantity
Source: Ministry of Economy, Trade and Industry.

2. Principal Industries in the Manufacturing Sector

This section describes the major industries in the manufacturing sector. For
each industry, (a) is described by the "2012 Economic Census for Business
Activity (preliminary tabulation)" (with four or more persons engaged),
and (b) is described by the "Indices on Mining and Manufacturing" (2005
average = 100).

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 MANUFACTURING AND CONSTRUCTION

(1) Machinery Industry

(A) Transport Equipment Industry

(a) In 2011, a total of 11,961 establishments employed 945,050 persons,
and shipped 50.5 trillion yen worth of products.
(b) In 2012, production and shipments increased year-on-year by 12.0
percent and 11.4 percent, respectively. As a result, both production and
shipments recorded their first increase in two years. This was due to the
increase in the production and shipments of passenger cars, motor vehicle
parts, etc.

(B) Production Machinery Industry

(a) In 2011, a total of 21,499 establishments employed 552,090 persons,
and shipped 15.6 trillion yen worth of products.
(b) In 2012, production and shipments decreased year-on-year by 5.6
percent and 5.2 percent, respectively. As a result, both production and
shipments recorded their first decrease in three years.

(C) Electrical Machinery, Equipment and Supplies Industry

(a) In 2011, a total of 10,163 establishments employed 472,893 persons,
and shipped 15.1 trillion yen worth of products.
(b) In 2012, production and shipments decreased year-on-year by 4.5
percent and 4.1 percent, respectively. As a result, production recorded the
first decrease in three years and shipments decreased for the second
consecutive year. Decrease in the production of household electrical
machinery resulted in the total production decrease in the industry.
Decrease in the total shipments was caused by the decrease in switching
devices.

72
 MANUFACTURING AND CONSTRUCTION

(D) Electronic Parts and Devices Industry

(a) In 2011, a total of 5,382 establishments employed 445,988 persons, and
shipped 15.7 trillion yen worth of products.
(b) In 2012, production and shipments decreased by 6.8 percent and 1.4
percent, respectively, from the previous year. As a result, both production
and shipments recorded their second consecutive year of decrease.

(E) Information and Communication Electronics Equipment Industry

(a) In 2011, a total of 1,899 establishments employed 193,994 persons, and
shipped 9.8 trillion yen worth of products.
(b) In 2012, production and shipments decreased by 12.8 percent and 25.3
percent, respectively, from the previous year. As a result, both production
and shipments recorded their second consecutive year of decrease.
Decrease in the production of communication equipment resulted in the
total production decrease in the industry. Decrease in the total shipments
was caused by the decrease in household electronic machinery.

(2) Chemical Industry

(a) In 2011, a total of 4,999 establishments employed 329,435 persons, and
shipped 25.9 trillion yen worth of products.
(b) In 2012, production and shipments decreased by 0.1 percent and 0.7
percent, respectively, from the previous year. As a result, both production
and shipments recorded their first decrease in three years. In 2012,
production and shipments in the chemical industry (excluding medical and
pharmaceutical products) decreased by 3.7 percent and 3.4 percent,
respectively, from the previous year. As a result, both production and
shipments recorded their second consecutive year of decrease. This was
attributable to the decline in the production and shipments of plastic,
industrial organic chemicals, etc.

73
 MANUFACTURING AND CONSTRUCTION

(3) Iron and Steel Industry

(a) In 2011, a total of 4,926 establishments employed 218,849 persons, and
shipped 18.6 trillion yen worth of products.
(b) In 2012, production and shipments decreased by 0.3 and by 0.2 percent
compared to the previous year. As a result, both production and shipments
recorded their second consecutive year of decrease. This was attributable
to the decline in the production and shipments of cold finished steel,
metallic coated steel, etc.

Figure 6.3
Crude Steel Production in Selected Countries
Million tons
800

700

China
600 ▼

500

400

300

U.S.A.
200 Russia
Japan
▼
100

India Germany
0
2003 04 05 06 07 08 09 10 11 12

Source: The Japan Iron and Steel Federation; World Steel Association.

74
 MANUFACTURING AND CONSTRUCTION

Table 6.4
Steel Production
(Thousand tons)
Products 2008 2009 2010 2011 2012
Pig iron ................................... 86,171 66,943 82,283 81,028 81,405
Ferroalloys .............................. 828 722 893 834 908
Crude steel .............................. 118,739 87,534 109,599 107,601 107,232
Semi-finished steel ................. 115,358 85,359 106,960 104,594 104,571
Ordinary hot-rolled steel ........ 84,299 63,417 77,260 74,492 74,911
Special hot-rolled steel ........... 21,782 13,269 20,505 20,340 19,896
Steel pipes and tubes .............. 9,722 6,172 7,690 7,804 7,877
Finished steel .......................... 103,297 74,415 94,937 92,019 92,006
Ordinary steel products ........ 82,703 62,024 75,610 72,816 73,238
Special steel products ........... 20,594 12,391 19,327 19,203 18,768
Source: Ministry of Economy, Trade and Industry.

(4) Fabricated Metal Products Industry

(a) In 2011, a total of 29,469 establishments employed 568,652 persons,
and shipped 12.1 trillion yen worth of products.
(b) In 2012, production increased by 0.1 percent and shipments decreased
by 0.6 percent compared to the previous year. Consequently, production
recorded its first increase in two years, while shipments decreased for the
second consecutive year. A rise in the production of metal products for
building contributed to the total production increase in the industry. The
decrease in total shipments was caused by a decline in heating and kitchen
equipment, etc.

3. Construction
The construction industry, accounting for about 10 percent of both GDP
and all employed persons, is one of the core industries in Japan. However,
it faces a series of challenges, including rapidly shrinking construction
investment and increasingly fierce price wars. The business environment
surrounding the industry is now harsher than ever before. In fiscal 2012,
the industry employed 5.05 million persons, and investment in
construction stood at approximately 44.9 trillion yen.

75
 MANUFACTURING AND CONSTRUCTION

Table 6.5
Construction Investment (Current prices)
(Billion yen)
Item FY2009 FY2010 FY2011* FY2012*
Total ................................................ 42,965 41,928 41,890 44,900
Building construction ................... 22,690 22,099 22,480 23,420
Dwellings .................................... 13,402 13,493 13,840 14,400
Public sector ............................. 562 515 460 420
Private sector ............................ 12,840 12,978 13,380 13,980
Non-dwellings ............................ 9,288 8,606 8,640 9,020
Public sector ............................. 1,650 1,694 1,680 1,910
Private sector ............................ 7,638 6,912 6,960 7,110
Mining and manufacturing ..... 1,287 1,067 … …
Others ..................................... 6,351 5,845 … …
Civil engineering works ................ 20,275 19,829 19,410 21,480
Public sector ............................... 15,723 15,772 15,070 16,530
Public works ............................. 13,914 13,020 12,450 13,860
Others ....................................... 1,809 2,753 2,620 2,670
Private sector .............................. 4,552 4,057 4,340 4,950
Total
Public investment ......................... 17,935 17,982 17,210 18,860
Private investment ........................ 25,030 23,946 24,680 26,040
Building construction
Public investment ......................... 2,212 2,210 2,140 2,330
Private investment ........................ 20,479 19,890 20,340 21,090
Civil engineering works
Public investment ......................... 15,723 15,772 15,070 16,530
Private investment ........................ 4,552 4,057 4,340 4,950
Source: Ministry of Land, Infrastructure, Transport and Tourism.

Investment in construction in fiscal 2012 showed a year-on-year increase

of 7.2 percent at current prices and a year-on-year increase of 8.7 percent
at constant fiscal 2005 prices. Construction investment in fiscal 2012 was
down by almost half (46.5 percent) from the fiscal 1992 peak of
approximately 84.0 trillion yen.
A breakdown of construction investment shows that building construction
totaled 23.4 trillion yen (up 4.2 percent from the previous fiscal year),
while civil engineering works amounted to 21.5 trillion yen (up 10.7
percent).

76
 MANUFACTURING AND CONSTRUCTION

In terms of public and private construction investment in fiscal 2012,

public investment amounted to 18.9 trillion yen (up 9.6 percent from the
previous fiscal year), while private investment totaled 26.0 trillion yen (up
5.5 percent). Public investment accounted for 42.0 percent of total
construction investment, while private investment accounted for 58.0
percent.
The 2012 total floor space of building starts was 132.6 million square
meters, up 4.8 percent from the previous year. In particular, the floor space
of buildings for medical, healthcare and welfare use decreased by 15.0
percent compared to the previous year, to 9.3 million square meters.
Meanwhile, the number of housing construction starts (in the case of
apartment buildings, the number of apartment units was counted) increased
for owned houses, rental units and built-for-sale units alike, totaling 0.88
million housing units. This was a 5.8-percent increase from the previous
year, and the third consecutive year with an increase.

Figure 6.4
Building Construction Started by Use Objective (2012)
%
0 20 40 60 80 100

Number of
buildings

Floor space

Construction Dwelling 1) Others

cost

Manufacturing Medical, healthcare

and welfare
Wholesale and retail trade

1) Including dormitories and dormitories-industry concurrent use.

Source: Ministry of Land, Infrastructure, Transport and Tourism.

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 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 7
Energy

© OGASAWARA Satoru

Tokyo Skytree is lit up. The lighting uses only LED lamps. Its design manages to
balance energy conservation and beauty.
 ENERGY

1. Supply and Demand

Japan is dependent on imports for 87.6 percent of its energy supply. Since
experiencing the two oil crises of the 1970s, Japan has taken measures to
promote energy conservation, introduce alternatives to petroleum, and
secure a stable supply of petroleum through stockpiling and other
measures. As a result, its dependence on petroleum declined from 77.4
percent in fiscal 1973 to 46.1 percent in fiscal 2011.
Today, in addition to promoting energy conservation and the adoption of
renewable energy, the Government of Japan is working on building a
disaster-resistant energy supply system, which includes securing nuclear
safety, from the perspectives of a zero-based review of energy policy
before the Great East Japan Earthquake and addressing global warming.
In fiscal 2011, the total primary energy supply in Japan was 21,960
petajoules, down 5.0 percent from the previous fiscal year. Its breakdown
was: 46.1 percent in petroleum, 21.3 percent in coal, 21.4 percent in
natural gas, 4.0 percent in nuclear power, and 3.3 percent in hydro power.
Other sources were also used, though only in small quantities, including
energy from waste, geothermal, and natural energy (solar energy, wind
power, biomass energy, etc.).

Energy units

Joule (J) is employed as a common unit (International System of Units: SI)

for energy across all energy sources in presenting international statistical
information. The unit Petajoule (PJ: 1015 or quadrillion joules) is used here
to reduce the number of digits. The energy of one kiloliter of petroleum is
calculated using the following formulae:

1 kiloliter of petroleum = 3.87×1010 joules

1 petajoule = 1015 joules

Petroleum is traded internationally using the volume unit of barrels. One

barrel equals approximately 158.987 liters.

79
 ENERGY

Japan's final energy consumption was increasing almost steadily since the
mid-1980s. However, it has trended downward since fiscal 2005. Final
energy consumption in fiscal 2011 decreased by 3.0 percent compared to
the previous fiscal year. While energy consumption in the industrial sector
has remained mostly level, there were sharp increases in energy
consumption in the commercial and residential sector and in the transport
sector. In the commercial and residential sector, energy consumption by
the commercial sector in particular has risen in recent years. It increased
by 40.9 percent over the 22 years from fiscal 1990 through fiscal 2011.
This has been mainly caused by (i) the rise in the total floor area of office
buildings and large-scale retail stores; (ii) an increase in the amount of air
conditioning equipment and lighting appliances used in those facilities;
and (iii) the growth of office automation and extending opening hours.

Figure 7.1
Total Primary Energy Supply 1)

Petajoules
30,000
Others

25,000 Hydro

20,000 Nuclear

Natural gas
15,000
Coal

10,000

Petroleum
5,000

0
FY1965 70 75 80 85 90 95 00 05 10 11

1) A different statistical method was used for figures of fiscal 1989 and prior.
Source: Ministry of Economy, Trade and Industry.

80
 ENERGY

Table 7.1
Trends in Total Primary Energy Supply and Percentage
by Energy Source
(Petajoules)
Item FY1995 FY2000 FY2005 FY2010 FY2011
Total primary energy supply ...... 22,685 23,622 23,784 # 23,124 21,960
1)
Energy self-sufficiency (%) .. 19.6 19.6 18.4 # 19.1 12.4
Petroleum ................................. 12,430 12,008 11,641 10,101 10,126
Coal .......................................... 3,750 4,286 4,829 4,997 4,687
Natural gas ............................... 2,479 3,061 3,288 4,002 4,696
Nuclear ..................................... 2,700 2,873 2,677 2,495 885
Hydro ....................................... 761 778 672 712 724
Others ....................................... 564 616 676 # 817 842
Percentage
Petroleum ................................. 54.8 50.8 48.9 43.7 46.1
Coal .......................................... 16.5 18.1 20.3 21.6 21.3
Natural gas ............................... 10.9 13.0 13.8 17.3 21.4
Nuclear ..................................... 11.9 12.2 11.3 10.8 4.0
Hydro ....................................... 3.4 3.3 2.8 3.1 3.3
Others ....................................... 2.5 2.6 2.8 # 3.5 3.8
1) Domestic production of primary energy (including nuclear)/Domestic supply of primary
energy × 100
Source: Ministry of Economy, Trade and Industry.

Figure 7.2
Trends in Final Energy Consumption by Sector 1)
Petajoules
18,000

16,000

14,000
Transport
12,000

10,000
Commercial and residential
8,000

6,000

4,000
Industrial
2,000

0
FY1965 70 75 80 85 90 95 00 05 10 11

1) A different statistical method was used for figures of fiscal 1989 and prior.
Source: Ministry of Economy, Trade and Industry.

81
 ENERGY

Figure 7.3
Consumption of Commercial Energy by Country (2009)
Million tons of oil equivalent Tons
2,500 2,000 1,500 1,000 500 0 0 2 4 6 8 10

U.S.A.
China

Total Russia Per capita

India
Japan
Germany
Canada
Iran
Source: United Nations.

Total primary energy supply per GDP is lower in Japan than in other
industrialized countries. This indicates that Japan is one of the most
energy-efficient countries in the world.

Figure 7.4
International Comparison of Energy/GDP Ratio 1) (2010)
(Japan = 1)
0 1 2 3 4 5 6 7 8 9 10
U.K.
Italy
Japan
Germany
France
Australia
U.S.A.
Canada
Korea, Rep. of
India
China
Russia

1) Total primary energy supply (tons of oil equivalent)/GDP.

Source: International Energy Agency.

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 ENERGY

2. Electric Power
Approximately half of Japan's primary energy supply of petroleum, coal
and other energy sources is converted into electric power.
Electricity output (including in-house power generation) in Japan totaled
1,108 billion kWh in fiscal 2011, down 4.2 percent from the previous
fiscal year. Of this total, thermal power accounted for 81.9 percent; nuclear
power, 9.2 percent; hydro power, 8.3 percent. In the field of thermal power
generation, huge replacement has been made from petroleum to natural
gas.

Table 7.2
Trends in Electricity Output and Power Consumption 1)
(Million kWh)
Item FY1995 FY2000 FY2005 FY2010 FY2011
Electricity Output
Total ................................................. 989,880 1,091,500 1,157,926 1,156,888 1,107,829
Thermal ............................................ 604,206 669,177 761,841 771,306 906,946
Nuclear ............................................. 291,254 322,050 304,755 288,230 101,761
Hydro ............................................... 91,216 96,817 86,350 90,681 91,709
Others ............................................... 3,204 3,456 4,980 6,671 7,413
Percentage
Total ................................................. 100.0 100.0 100.0 100.0 100.0
Thermal ............................................ 61.0 61.3 65.8 66.7 81.9
Nuclear ............................................. 29.4 29.5 26.3 24.9 9.2
Hydro ............................................... 9.2 8.9 7.5 7.8 8.3
Others ............................................... 0.3 0.3 0.4 0.6 0.7
Power Consumption
Total ................................................. 881,559 982,066 1,043,800 1,056,441 1,002,445
Generated by electric power suppliers .. 776,511 858,078 918,265 931,059 883,787
Consumption of in-house generation .... 105,048 123,988 125,535 125,382 118,658
1) Including in-house generation.
Source: Ministry of Economy, Trade and Industry.

83
 ENERGY

3. Gas
Gas production was 1,306 petajoules in fiscal 2011, up 1.4 percent from
the previous fiscal year. Of this total, natural gas plus liquefied natural gas
(LNG) accounted for 96.1 percent; and the remaining 3.9 percent were
petroleum gases, such as volatile oil, liquefied petroleum gas, etc. Gas
purchases for fiscal 2011 totaled 275 petajoules.
Gas sales for fiscal 2011 totaled 1,503 petajoules, or year-on-year growth
of 1.8 percent. Of this total, 52.0 percent was sold to industry, 27.3 percent
to residential use, and 12.5 percent to the commercial sector.

Table 7.3
1)
Trends in Production and Purchases, and Sales of Gas
(Petajoules)
Item FY2000 FY2005 FY2010 FY2011
Production and purchases 1,061 1,394 1,547 1,581
Production ......................... 952 (100.0) 1,235 (100.0) 1,288 (100.0) 1,306 (100.0)
Coal gases ....................... 2 (0.2) - (-) - (-) - (-)
Petroleum gases ............... 111 (11.7) 67 (5.4) 46 (3.6) 50 (3.9)
Natural gas and LNG ...... 839 (88.2) 1,168 (94.6) 1,241 (96.4) 1,256 (96.1)
Others .............................. - (-) - (-) - (-) - (-)
Purchases ........................... 109 (100.0) 159 (100.0) 259 (100.0) 275 (100.0)
Coal gases ....................... 8 (7.2) 2 (1.3) - (-) - (-)
Petroleum gases ............... 15 (13.9) 10 (6.4) 6 (2.4) 6 (2.1)
Natural gas and LNG ...... 86 (78.8) 147 (92.3) 253 (97.6) 269 (97.9)
Others .............................. 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0)
Sales .................................... 1,047 (100.0) 1,359 (100.0) 1,477 (100.0) 1,503 (100.0)
Residential ....................... 397 (37.9) 416 (30.6) 410 (27.7) 410 (27.3)
Commercial ..................... 170 (16.2) 205 (15.1) 198 (13.4) 188 (12.5)
Industrial ......................... 391 (37.4) 619 (45.5) 738 (50.0) 782 (52.0)
Others .............................. 89 (8.5) 120 (8.8) 131 (8.9) 124 (8.3)
1) Figures in parentheses indicate percentage.
Source: Ministry of Economy, Trade and Industry.

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 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 8
Science and Technology/
Information and Communication

The K computer at the RIKEN Advanced Institute for Computational Science is one
of the fastest supercomputer in the world. It has the ability to perform 10,000 trillion
(one kei) calculations per second, and used in various fields including the simulation
of natural disasters such as earthquakes, protein analysis for drug design, the
development of new materials, and much more.
 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

1. Science and Technology

(1) Researchers and R&D Expenditures
Japan ranks third among major industrialized countries, following the
U.S.A. and China, in terms of expenditure on science and technology, and
this expenditure supports its position as a technology-based country.
Researchers in the fields of science and technology (including social
sciences and humanities) as of the end of March 2012 totaled 844,000. The
total research and development (R&D) spending in fiscal 2011 amounted
to 17.4 trillion yen, recording the first increase in four years. Relative to
GDP, R&D spending was 3.67 percent, the first increase in three years.

Table 8.1
Trends in Research and Development
R&D Ratio of R&D
Number of Females Fiscal GDP
Year expenditures expenditures to GDP
Researchers 1) (%)
year
(billion yen) (billion yen) (%)
2003 757,300 11.2 2002 16,675 498,009 3.35
2004 787,300 11.6 2003 16,804 501,889 3.35
2005 790,900 11.9 2004 16,938 502,761 3.37
2006 819,900 11.9 2005 17,845 505,349 3.53
2007 826,600 12.4 2006 18,463 509,106 3.63
2008 827,300 13.0 2007 18,944 513,023 3.69
2009 839,000 13.0 2008 18,800 489,520 3.84
2010 840,300 13.6 2009 17,246 473,934 3.64
2011 842,900 13.8 2010 17,110 480,098 3.56
2012 844,400 14.0 2011 17,379 473,283 3.67
1) In full time equivalent, with the number of researchers partly engaged in R&D recalculated
based on the real R&D hours consumed by them.
Source: Statistics Bureau, MIC.

As of the end of March 2012, the number of researchers in business

enterprises amounted to 491,000 persons, the number of researchers in
non-profit institutions and public organizations was 40,000 persons, and
the number of researchers in universities and colleges was 314,000 persons.
In terms of R&D expenditures in fiscal 2011, business enterprises spent
12.3 trillion yen (70.6 percent of total R&D expenditures), non-profit
institutions and public organizations spent 1.6 trillion yen (9.0 percent),
and universities and colleges spent 3.5 trillion yen (20.4 percent).

86
 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

Universities and colleges spend more than 90 percent of their R&D

expenditure on natural sciences for basic research and applied research,
while business enterprises allocate over 70 percent for development
purposes.
Japan drives its science and technology policy from a long-term
perspective based on the Science and Technology Basic Law, established
in 1995. The Fourth Basic Plan (2011-2015), which started in August 2011,
sets the restoration of the Great East Japan Earthquake that occurred in
March 2011 as a priority issue and states to strengthen efforts to promote
basic research and human resources development. Of the total research
expenditure spent in fiscal 2011, those spent on specific purposes were for
"life sciences," "information technology," "environmental science and
technology," "energy" and "nanotechnology and materials," in order of the
amount spent.

Figure 8.1
R&D Expenditures by Selected Objective (FY2011)
Nanotechnology and
Environmental science and materials 883
technology 1,041 ▼ Space exploration 216
▼

Life sciences Information technology Energy Oceanology 109

2,773 2,556 1,005

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000
Billion yen

Source: Statistics Bureau, MIC.

Approximately 90 percent of the 491,000 researchers at business

enterprises at the end of March 2012, or 438,000 persons, were in the
manufacturing industries; the largest number was in the information and
communication electronics equipment industry, followed by the motor
vehicle, parts and accessories industry, then by the business oriented
machinery. In terms of R&D expenditures in fiscal 2011, of 12.3 trillion
yen spent by business enterprises, 10.8 trillion yen was spent by

87
 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

manufacturing industries. The motor vehicle, parts and accessories

industry spent the most, followed by the information and communication
electronics equipment industry, then by the medical and pharmaceutical
industry.

Figure 8.2
Researchers and Expenditures by Industry (Business enterprises)

Researchers (2012) Expenditures (FY2011)

① ②
19.8% 17.8%
Others Others
35.7 36.0 ①
490,900 ② 12,272
persons billion yen 14.2
13.0

③ ⑦
⑥ ⑥
⑤ ④ ⑤ ③
9.5 10.0
6.9 6.1
7.4 7.6 7.9 8.0

① Information and communication electronics equipment ② Motor vehicle, parts and accessories
③ Business oriented machinery ④ Electronic parts, devices and electronic circuits ⑤ Electrical
machinery, equipment and supplies ⑥ Chemical products ⑦ Medical and pharmaceutical products

Source: Statistics Bureau, MIC.

(2) Technology Trade

Technology trade is defined as export or import of technology by business
enterprises with other countries, such as patents and expertise. In fiscal
2011, Japan earned 2,385 billion yen from technology exports, which was
down 2.1 percent from the previous fiscal year; of the total receipts, 71.6
percent was from overseas parent/subsidiary companies. Meanwhile, Japan
paid 415 billion yen for technology imports. This was down 21.8 percent
from the previous fiscal year, marking the fourth consecutive year of
decrease; of this figure, 27.1 percent was payments to overseas parent/
subsidiary companies.

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 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

Table 8.2
Technology Trade by Business Enterprises 1)
Technology Trade Exports
Fiscal Exports Imports value
year Value Annual increase Value Annual increase Imports
(billion yen) rate (%) (billion yen) rate (%) value
1990 339.4 3.0 371.9 12.7 0.91
1995 562.1 21.6 391.7 5.7 1.43
2000 1,057.9 10.1 443.3 8.0 2.39
2005 2,028.3 14.6 703.7 24.0 2.88
2009 2,015.3 -9.4 534.9 -10.9 3.77
2010 2,436.6 20.9 530.1 -0.9 4.60
2011 2,385.2 -2.1 414.8 -21.8 5.75
1) The survey coverage was expanded in FY1996 and FY2001.
Source: Statistics Bureau, MIC.

Figure 8.3
Trends in Technology Trade by Business Enterprises

Billion yen Times

3,000 6.0
Exports/Imports
Imports (right scale) 5.5

2,500 (payments) 5.0

Exports
(receipts) 4.5

2,000 4.0

3.5

1,500 3.0

2.5

1,000 2.0

1.5

500 1.0

0.5

0 0.0
FY2002 03 04 05 06 07 08 09 10 11

Source: Statistics Bureau, MIC.

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 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

In fiscal 2011, Japan exported 2,385.2 billion yen of technologies; major

destinations for export were: the U.S.A. (804.9 billion yen, or 33.7 percent
of total exports), followed by China (306.7 billion yen), Thailand (209.3
billion yen), and the U.K. (162.2 billion yen). On the other hand, Japan
imported 414.8 billion yen of technologies, mainly from the U.S.A. (314.8
billion yen, or 75.9 percent of total imports), followed by France (17.9
billion yen), the U.K. (17.8 billion yen), and Germany (11.9 billion yen).

Figure 8.4
Composition of Technology Trade by Major Country/Region
(FY2011)

Exports (receipts) Imports (payments)

Germany
2.9 Others
Others U.S.A. U.K. 12.6
24.7 4.3

Korea, 33.7% U.S.A.

2,385.2 414.8
Rep. of France billion yen
billion yen 75.9%
3.9 4.3
Taiwan
4.5 China
Indonesia 6.8 12.9
8.8
4.7
U.K.
Thailand

Source: Statistics Bureau, MIC.

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 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

2. Patents
The total number of patent applications remained robust in and after 1998
as more than 400,000 applications were submitted every year, but a
gradual drop has been seen since 2006. In 2011, there were 342,610
applications (down 0.6 percent from the previous year).

Table 8.3
Patents
(Cases)
Item 1995 2000 2005 2010 2011
Applications ........................... 369,215 436,865 427,078 344,598 342,610
Registrations ........................... 109,100 125,880 122,944 222,693 238,323
Existing vested rights ............. 681,459 1,040,607 1,123,055 1,423,432 1,542,096
Source: Japan Patent Office.

Table 8.4
PCT International Applications by Country of Origin
(Cases)
Annual
Country 2008 2009 2010 2011 2012 growth
(%)
Total ................................... 163,240 155,406 164,338 182,411 194,926 6.9
U.S.A. ............................. 51,643 45,628 45,029 49,092 51,429 4.8
Japan ............................... 28,760 29,802 32,150 38,875 43,659 12.3
Germany ......................... 18,855 16,797 17,568 18,851 18,758 -0.5
China .............................. 6,120 7,900 12,296 16,402 18,614 13.5
Korea, Rep. of ................. 7,899 8,035 9,669 10,447 11,846 13.4
France ............................. 7,072 7,237 7,246 7,438 7,847 5.5
U.K. ................................ 5,467 5,044 4,891 4,848 4,893 0.9
Switzerland ..................... 3,799 3,672 3,728 4,009 4,189 4.5
Netherlands ..................... 4,363 4,462 4,063 3,503 4,070 16.2
Sweden ........................... 4,136 3,568 3,314 3,462 3,587 3.6
Source: World Intellectual Property Organization.

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 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

Over 140 countries, including Japan, have joined the international patent
system of the World Intellectual Property Organization (WIPO) as of July
2012. In 2012, the number of international patent applications made based
on the Patent Cooperation Treaty (PCT) was 194,926, of which Japan filed
43,659, an increase of 12.3 percent over the previous year.
The United States Patent and Trademark Office (USPTO) ranked first
among major patent offices with which Japanese filed patent applications
in 2010, with 84,017 filings. The number of Japanese-filed patent
applications at the State Intellectual Property Office of the People's
Republic of China (SIPO) has been steadily on a rising trend since the
comparable year 2002. It reached 39,231 in 2011, approximately 2.5 times
more than the 2002 figure of 15,511.

Figure 8.5
Changes in the Number of Patent Applications Filed with
Major Offices by Japanese Applicants
Cases
90,000

80,000
USPTO (United States Patent and Trademark Office)
70,000

60,000

50,000
SIPO (State Intellectual Property Office
of the People's Republic of China)
40,000

30,000
EPO (European Patent Office)
20,000

10,000
KIPO (Korean Intellectual Property Office)
0
2003 04 05 06 07 08 09 10 11

Source: Japan Patent Office.

92
 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

3. Information and Communication

(1) Diffusion of the Internet
The number of Internet users has been growing steadily since the start of
commercial Internet use in 1993. As of the end of 2012, the number of
people who had used the Internet in the past year (those aged 6 years and
over; covering any and all types of Internet connection devices used,
including PCs, cell phones, personal handyphone systems, smartphones,
tablet terminals and game machines) totaled 96.52 million, or 79.5 percent
of the population aged 6 years and over. An observation by age group
showed that the individual Internet usage rate exceeded 90 percent in
people in each age group of between 13 and 49, although the rate dropped
as the age went up.
Looking at the status of Internet use by terminal as of the end of 2012, the
usage rate of home PCs was the highest (59.5 percent), followed by cell
phones (42.8 percent), PCs outside the home (34.1 percent), and
smartphones (31.4 percent). Figures for the rate of Internet use by terminal
by age group show that approximately 80 percent of people in each age
group of between 13 and 49 use home PCs. In the 13–29 age groups, usage
of smartphones surpassed that of cell phones.

Figure 8.6
Trends in Internet Usage Rate by Age Group 1)
%
100
2002
2012
80

60

40

20

0
Total
Total 6-12 13-19 20-29 30-39 40-49 50-59 60-64 65-69 70-79 80 and
over
1) Ages 6 years and over.
Source: Ministry of Internal Affairs and Communications.

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 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

Among enterprises, the Internet usage rate at the end of 2012 was 99.9
percent (up 0.6 percentage points from the previous year). Trends in the
Internet usage rate remained flat, at around 99 percent, showing that
Internet usage at businesses is fully diffused.

(2) Progress of Communication Technologies

As of the end of March 2012, the contracts of broadband (connection)
service subscriptions totaled 37.23 million, marking a 6.6-percent annual
increase. Among broadband subscribers, the number of DSL (digital
subscriber line) subscribers reached 6.70 million, accounting for 18.0
percent of the total.
In 2011, the number of broadband subscribers in Japan, as an indication of
the spread of its use, was 34.92 million, the third largest after China
(156.49 million) and the U.S.A. (85.63 million).

Figure 8.7
International Comparison of the Number of Broadband
Subscribers (2011)
Million subscribers
0 20 40 60 80 100 120 140 160

China

U.S.A.

Japan

Germany

France

U.K.

Russia

Korea, Rep.of

Brazil

Italy

Source: International Telecommunication Union.

94
 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

Meanwhile, IP phone services (voice phone services that use Internet

Protocol technology across part or all of the communication network),
which use broadband circuits as access lines, entered full-scale use
between 2002 and 2003. As of the end of March 2013, the total number of
IP phone subscribers was 31.27 million.
Subscribers for Internet connection service using cable television networks
(cable Internet) as of the end of March 2012 totaled 5.91 million (up 4.2
percent from the previous year).
FTTH (fiber to the home) service, using optical fiber, is a service that uses
an ultra-high speed network capable of communicating faster than a DSL
or cable Internet connection. As of the end of March 2012, the number of
FTTH (connection) subscribers was 22.30 million, marking a 10.3-percent
increase over the past year. The number of DSL subscribers is decreasing,
while that of FTTH is increasing. In recent years, the number of BWA
(broadband wireless access) service (access services connecting to
networks via broadband wireless access systems using the 2.5GHz band
[WiMAX, etc.]) subscribers is rapidly increasing, although the share of
total is small.

(3) Telephone
The number of fixed phone subscription contracts was 28.47 million
(down 9.1 percent year-on-year) at the end of March 2013. In contrast, the
total number of IP phone subscribers continues on an upward trend.
Meanwhile, the number of mobile phone subscribers (cell phones and
personal handyphone systems) totaled 132.76 million at the end of March
2012, marking a rise by 6.3 percent year-on-year to 141.12 million at the
end of March 2013.

95
 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

Table 8.5
Telecommunications Services 1)
(Thousands)
Item 1995 2000 2005 2010 2011 2012
Public phones (NTT 2) only) ... 801 736 442 283 253 231
Fixed phone service
subscribers ........................... 59,936 55,547 51,626 37,918 34,539 31,319
Mobile phone subscribers 3) .... 4,331 56,846 91,474 116,295 123,287 132,761
ISDN (Integrated Services
Digital Network) subscribers ... 344 6,683 7,981 5,421 5,029 4,634
DSL (Digital Subscriber Line)
subscribers ........................... - 0 13,676 9,735 8,201 6,705
Cable Internet subscribers ....... - 216 2,961 5,314 5,674 5,910
FTTH (Fiber to the home)
subscribers ........................... - - 2,890 17,802 20,218 22,303
International phone calls,
sent and received ................. 599,400 801,200 # 1,103,700 1,101,600 1,085,800 992,900
1) End of March. 2) Nippon Telegraph and Telephone Corporation. 3) Subscribers of
cell phones, car phones and PHS (personal handyphone system).
Source: Ministry of Internal Affairs and Communications.

Figure 8.8
Telephone Service Subscribers
Millions
160

140
Fixed phones
120
Mobile phones 1)
100

80

60

40

20

0
1999 00 01 02 03 04 05 06 07 08 09 10 11 12 13

1) Subscribers of cell phones, car phones and PHS (personal handyphone system).
Source: Ministry of Internal Affairs and Communications.

96
 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION

(4) Postal Service

As of the end of March 2012, there were, nationwide, 24,514 post offices
and 185,409 mailboxes.
Japan Post Co., Ltd. handled 21.84 billion pieces of domestic mail (letters
and parcels) in fiscal 2012 (a 0.1-percent decrease from the previous fiscal
year).
Meanwhile, the total number of international mail (including letters,
express mail services [EMS] and parcels) sent in fiscal 2012 amounted to
47.9 million pieces (a decrease of 3.2 percent from the previous fiscal
year), representing an enormous decrease from that of fiscal 1992 (131.6
million).

Table 8.6
Postal Services
(Millions)
Item FY1995 FY2000 FY2005 FY2010 FY2011 FY2012
Domestic
Letters ........................ 24,262.9 26,114.4 22,666.1 19,299.6 18,598.0 18,351.7
Parcels ........................ 400.2 310.5 2,075.0 2,968.4 3,255.4 3,483.5
International
Sent ............................ 122.8 106.0 77.5 54.2 49.5 47.9
1)
Letters ................. 119.9 104.3 76.1 52.8 48.2 46.6
Parcels .................... 2.9 1.7 1.5 1.4 1.3 1.3
1) Including express mail services (EMS).
Source: Japan Post Co., Ltd.

97
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 9
Transport

© HATANO Miho

Tokyo Station, the train terminal that can be called Tokyo's front door. The red-brick
station building on the Marunouchi Exit side was designed by Kingo TATSUNO and
completed in 1914. In 2003, it was designated an Important Cultural Property of
Japan.
 TRANSPORT

1. Domestic Transport

Various modes of domestic transport are used in Japan; almost all

passenger transport is by railway, while nearly all freight transport is by
motor vehicle and cargo ship. The transport sector, which released 20
percent of the total CO2 emissions in fiscal 2011, is improving the energy
efficiency of cars, promoting the broader use of environmentally-friendly
cars, and in an effort to further reduce emissions, the Government works to
promote the development and commercialization of next-generation large
vehicles and the dissemination of "eco driving."

Figure 9.1
Composition of Domestic Transport
Passengers Airlines
▼ Motor vehicles
FY Passenger
2005
15.0% Railways 69.5 14.8 ships 0.7

FY
13.6 72.7 13.1 0.6
2011

0 100 200 300 400 500 600

Billion passenger-km

Freight Railways

FY
Motor vehicles 58.6% Cargo ships 37.2 4.0 Airlines 0.2
2005

FY 54.1
2011
41.0 4.7 0.2

0 100 200 300 400 500 600

Billion ton-km
Source: Ministry of Land, Infrastructure, Transport and Tourism.

99
 TRANSPORT

(1) Domestic Passenger Transport

No major changes have been observed in recent years in the volume of

domestic passenger transport. Under these circumstances, a shift from
private automobiles to public transportation should be promoted as a
measure against global warming. Therefore, in addition to promotion of
computerization such as adoption of IC cards (multiple-use IC [integrated
circuit] cards) and increased convenience in public transportation through
the improvement of transfers, workplace "eco-commuting" measures have
been promoted along with cooperation on regional eco-commuting
measures to develop greener commuter traffic.

In fiscal 2011, the number of domestic transport passengers was 28.87

billion (down 0.7 percent from the previous fiscal year). The total volume
of passenger transport was 543.2 billion passenger-kilometers (down 0.9
percent).

Table 9.1
Domestic Passenger Transport 1)
Passengers carried Passenger kilometers
Item (thousands) (millions)
FY2010 FY2011 FY2010 FY2011
Total transport volume ...................... 29,077,664 28,868,961 547,898 543,195
Railways .......................................... 22,669,011 22,632,357 393,466 395,067
JR (Japan Railways) ...................... 8,818,311 8,837,406 244,593 246,937
Other than JR ................................ 13,850,700 13,794,951 148,873 148,130
Motor vehicles ................................ 6,241,395 6,073,486 77,677 73,916
Buses (Commercial use) ............... 4,458,229 4,413,757 69,955 66,696
Taxis and limousine hires ............. 1,783,166 1,659,729 7,723 7,221
Airlines ........................................... 82,211 79,052 73,751 71,165
Passenger ships ............................... 85,047 84,066 3,004 3,047
1) Excluding March and April 2011 data of the Hokkaido District Transport Bureau and the
Tohoku District Transport Bureau.
Source: Ministry of Land, Infrastructure, Transport and Tourism.

100
 TRANSPORT

In fiscal 2011, the Japan Railways (JR) group reported 8.84 billion
passengers (up 0.2 percent from the previous fiscal year) and 246.94
billion passenger-kilometers (up 1.0 percent). Railways other than JR
reported 13.79 billion passengers (down 0.4 percent) and 148.13 billion
passenger-kilometers (down 0.5 percent).

Figure 9.2
Rail Transport by Country (2011)
Billion passenger-km Billion ton-km

～
～
1,200 1,000 800 600 400 200 0 0 400 1,600
800 2,000
1,200 2,400
1,600 2,800
2,000

India

China 2,563

Japan
（FY2011）
Russia 2,127

France
Passengers Freight
Germany

U.K.

U.S.A. 2,525

Source: Ministry of Land, Infrastructure, Transport and Tourism; The World Bank.

Commercial buses transported 4.41 billion passengers (down 1.0 percent

from the previous fiscal year) and achieved 66.70 billion
passenger-kilometers (down 4.7 percent); both figures decreased in fiscal
2011. In order to encourage the use of buses, various efforts to improve
their convenience have been promoted.

Taxi and limousine hire services have marked a long-term downward trend
in passengers. They carried 1.66 billion passengers (down 6.9 percent from
the previous fiscal year) and reported 7.22 billion passenger-kilometers
(down 6.5 percent).

101
 TRANSPORT

Table 9.2
Number of Motor Vehicles Owned
Type of vehicles FY1995 FY2000 FY2005 FY2010 FY2012
Trucks and trailers .............. 20,235,051 18,064,744 16,707,445 15,137,641 14,851,666
Buses ................................... 242,907 235,550 231,696 226,839 226,047
Passenger cars ..................... 45,068,530 52,449,354 57,097,670 58,139,471 59,357,223
Special purpose vehicles ..... 1,524,405 1,754,311 1,618,698 1,646,018 1,654,739
Two-wheeled vehicles 1) ..... 3,035,643 3,021,014 3,336,551 3,510,804 3,535,528
1) Two-wheeled vehicles with engine displacement of more than 125cc.
Source: Ministry of Land, Infrastructure, Transport and Tourism.

Fiscal 2011 air transport records show that there were 79 million
passengers (down 3.8 percent from the previous fiscal year), and
passenger-kilometers amounted to 71.17 billion (down 3.5 percent).

In fiscal 2011, passenger ships reported 84 million passengers (down 1.2

percent from the previous fiscal year) and 3.05 billion
passenger-kilometers (up 1.4 percent).

(2) Domestic Freight Transport

In the area of domestic freight, a total of 4.90 billion metric tons (up 0.1
percent from the previous fiscal year) of freight was transported for a total
of 426.95 billion ton-kilometers (down 3.9 percent) in fiscal 2011.

As for transport tonnage volume in fiscal 2011, motor vehicle transport

accounted for more than 90 percent of the total.

102
 TRANSPORT

Table 9.3
Domestic Freight Transport
Freight tonnage Ton kilometers
Item (thousands) (millions)
FY2010 FY2011 FY2010 FY2011
Total transport volume .......................... 4,891,580 4,898,783 444,478 426,951
Railways .............................................. 43,647 39,886 20,398 19,998
Motor vehicles ..................................... 4,480,195 4,496,954 243,150 231,061
Commercial use ................................ 3,069,416 3,153,051 213,288 202,441
Non-commercial use ......................... 1,410,779 1,343,904 29,862 28,620
Cargo ships .......................................... 366,734 360,983 179,898 174,900
1)
Airlines ............................................. 1,004 960 1,032 992
1) Including overweight baggage and postal mail.
Source: Ministry of Land, Infrastructure, Transport and Tourism.

2. International Transport

(1) International Passenger Transport

The global economic downturns after September 2008, the spread of new
influenza in early 2009, and the influence of the Great East Japan
Earthquake decreased international air passenger transport with Japanese
airlines. In 2012, however, they transported 14.00 million passengers (up
15.1 percent from the previous year) on international flights, and registered
61.36 billion passenger-kilometers (up 15.7 percent). It was the first upturn
in the five years since 2008.

The number of Japanese overseas travelers in 2012 rose from the previous
year to 18.49 million (up 8.8 percent). It was the third consecutive year
with an increase, and the highest number ever.

According to reports on arrivals by tourist offices in countries around the

world, China, Republic of Korea and the U.S.A. had many Japanese
visitors in 2011.

103
 TRANSPORT

Figure 9.3
Japanese Overseas Travelers and Foreign Visitor Arrivals
Millions
22
Japanese travelers (Females)
20
Japanese travelers (Males) Foreign
18 visitors
16
14
12
10
8
6
4
2
0
2003 04 05 06 07 08 09 10 11 12
Source: Ministry of Justice; Japan National Tourism Organization.

Table 9.4
Japanese Travelers
2010 2011 2012
Country or area Annual Annual Annual
Number of Number of Number of
of destination growth growth growth
arrivals arrivals arrivals
(%) (%) (%)
China ........................ 3,731,200 12.5 3,658,200 -2.0 3,518,200 -3.8
Korea, Rep. of .......... 3,023,009 -1.0 3,289,051 8.8 3,518,792 7.0
1)
U.S.A. .................... 3,386,076 16.0 3,249,569 -4.0 … …
Taiwan ...................... 1,080,153 7.9 1,294,758 19.9 1,432,315 10.6
Hong Kong SAR ...... 1,316,618 9.3 1,283,687 -2.5 1,254,602 -2.3
Thailand .................... 993,674 -1.1 1,127,893 13.5 1,371,253 21.6
Germany 2) ................ 605,231 12.5 642,542 6.2 … …
France ....................... 595,977 -14.5 621,541 4.3 … …
1) Including territories and dependencies (Northern Mariana Islands, Guam, American
Samoa, Puerto Rico and United States Virgin Islands, etc.). 2) Arrivals in registered tourist
accommodations.
Source: Japan National Tourism Organization.

104
 TRANSPORT

The number of foreign visitors to Japan was 8.36 million in 2012 (up 34.4
percent from the previous year). Broken down by country/region, the
number of visitors from Asian countries was highest, totaling 6.39 million
persons (up 35.2 percent from the previous year). Among Asian countries,
the number of visitors from Republic of Korea was highest, amounting to
2.04 million, a figure that accounted for 24.4 percent of the total number of
foreign visitors to Japan.

Table 9.5
Foreign Visitors
2010 2011 2012
Country or
Number of Percent Number of Percent Number of Percent
area of origin
arrivals distribution arrivals distribution arrivals distribution
Total arrivals ........... 8,611,175 100.0 6,218,752 100.0 8,358,105 100.0
Korea, Rep. of ...... 2,439,816 28.3 1,658,073 26.7 2,042,775 24.4
China .................... 1,412,875 16.4 1,043,246 16.8 1,425,100 17.1
Taiwan .................. 1,268,278 14.7 993,974 16.0 1,465,753 17.5
U.S.A. ................... 727,234 8.4 565,887 9.1 716,709 8.6
Hong Kong SAR .. 508,691 5.9 364,865 5.9 481,665 5.8
Australia ............... 225,751 2.6 162,578 2.6 206,404 2.5
Thailand ................ 214,881 2.5 144,969 2.3 260,640 3.1
U.K. ...................... 184,045 2.1 140,099 2.3 173,994 2.1
Singapore .............. 180,960 2.1 111,354 1.8 142,201 1.7
Canada .................. 153,303 1.8 101,299 1.6 135,355 1.6
Source: Japan National Tourism Organization.

In 2012, of the total number of foreign visitors to Japan, tourists numbered

6.04 million persons, or 72.3 percent of total foreign visitors. The highest
number of tourists came from Republic of Korea with 1.57 million
travelers, followed by Taiwan with 1.33 million travelers.

(2) International Freight Transport

The volume of seaborne foreign transport in 2012 was 973.9 million tons,
up 0.7 percent over the previous year. Of this figure, total exports
decreased by 19.2 percent to 41.9 million tons, and total imports decreased
by 2.6 percent to 521.8 million tons.

105
 TRANSPORT

Table 9.6
Seaborne Foreign Transport
(Thousand tons)
Year Total Exports Imports Cross Transport
1995 703,606 38,761 529,929 134,916
2000 739,377 34,960 538,875 165,542
2005 777,869 45,403 529,239 203,225
2010 819,075 44,758 465,898 308,419
2011 966,697 51,863 535,977 378,857
2012 973,892 41,898 521,848 410,146
Source: Ministry of Land, Infrastructure, Transport and Tourism.

Air-shipped international freight in 2012 totaled 1.14 million tons in terms

of volume (up 7.8 percent from the previous year) and 6.10 billion tons in
terms of ton-kilometers (up 8.3 percent).

106
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 10
Commerce

© IMATANI Akiyoshi

The Asao Daruma Market in Kawasaki-shi, Kanagawa Prefecture. In Japan, daruma

are widely enjoyed as charms that bring good luck such as business prosperity or the
realization of ambitions. According to the 2009 Economic Census for Business Frame,
there were 1.15 million retail establishments, with 8.57 million employees.
 COMMERCE

1. Wholesale and Retail

The 2009 Economic Census for Business Frame showed that 1.56 million
wholesale and retail establishments were in operation in Japan. The
number of persons engaged became 12.70 million.

(1) Wholesale Trade

The number of wholesale establishments was 402,000 in 2009. Observed

by size of operation in terms of persons engaged, establishments with less
than 20 persons accounted for 89.3 percent of the total. A total of 86.6
percent were corporations, while 13.3 percent were individual
proprietorships.

The number of persons engaged in wholesale was 4.13 million in 2009, of

which there were 804,000 part-timers and temporary employees, 19.5
percent of the total.

Table 10.1
Establishments and Persons Engaged in the Wholesale and Retail Sector (2009)
Item Total Wholesale Retail
Number of Establishments .............................................. 1,555,486 402,314 1,153,172
Size of operation (persons engaged)
1-4 persons ................................................................ 933,975 196,947 737,028
5-9 ............................................................................. 318,436 103,750 214,686
10-19 ......................................................................... 178,944 58,551 120,393
20-29 ......................................................................... 56,140 18,361 37,779
30-49 ......................................................................... 33,563 12,803 20,760
50-99 ......................................................................... 20,363 7,044 13,319
100 and over .............................................................. 9,692 3,343 6,349
Dispatched employees only ....................................... 4,373 1,515 2,858
Persons engaged ............................................................... 12,696,990 4,125,249 8,571,741
Regular employees ......................................................... 10,223,518 3,479,864 6,743,654
Full-timers ................................................................ 5,543,778 2,801,689 2,742,089
Part-timers ................................................................ 4,679,740 678,175 4,001,565
Temporary employees .................................................... 635,443 126,039 509,404
Dispatched employees from
the separately operated establishments ...................... 253,858 113,511 140,347
Dispatched employees to
the separately operated establishments ...................... 139,379 90,917 48,462
Source: Statistics Bureau, MIC.

108
 COMMERCE

(2) Retail Trade

The number of retail establishments in operation totaled 1.15 million in

2009. Observed by size of operation in terms of persons engaged,
establishments with less than 10 persons accounted for 82.5 percent of the
total. By type of legal organization, 53.1 percent of retail establishments
were corporations, while 46.7 percent were individual proprietorships. The
proportion of individual proprietorships was higher in the retail sector than
in the wholesale sector.

The number of persons engaged in retail was 8.57 million in 2009, of

which 4.51 million part-timers and temporary employees comprised 52.6
percent of the total.

2. Eating and Drinking Places

There were 673,000 eating and drinking places establishments in operation

and 4.42 million persons engaged in 2009.

Table 10.2
Eating and Drinking Places (2009)
Size of operation Establishments Persons engaged
(persons engaged) Number Ratio (%) Number Ratio (%)
Total ................................................. 673,458 100.0 4,421,927 100.0
1-4 persons .................................. 427,123 63.4 928,025 21.0
5-9 ................................................ 127,430 18.9 824,137 18.6
10-19 ............................................ 68,950 10.2 935,474 21.2
20-29 ............................................ 27,467 4.1 651,803 14.7
30 and over .................................. 22,024 3.3 1,082,488 24.5
Dispatched employees only ......... 464 0.1 - -
Source: Statistics Bureau, MIC.

109
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 11
Trade, International Balance of Payments, and
International Cooperation

© Ministry of Foreign Affairs

The Fifth Tokyo International Conference on African Development (TICAD V) was

held in Yokohama on June 1-3, 2013. Prime Minister Shinzo ABE announced Japan's
basic policy on assistance to Africa, along with an assistance package comprising up
to about 32 billion U.S. dollars in public-private initiatives over five years, including
roughly 14 billion U.S. dollars in official development assistance.
 TRADE, INTERNATIONAL BALANCE OF PAYMENTS, AND
INTERNATIONAL COOPERATION

1. Trade
(1) Overview of Trade
Although Japan's trade surplus has continued since 1981, the trade turned
to a deficit in 2011 for the first time in 31 years. This trade trend is
considered to be affected by the Great East Japan Earthquake, rapid
appreciation of the yen, and the slowdown in global economy. In terms of
Japan's international trade on a customs clearance basis in 2012, exports
(in FOB value) was 63.7 trillion yen, down 2.7 percent from the previous
year. This was a decrease for the second consecutive year. Imports (in CIF
value) grew by 3.8 percent to 70.7 trillion yen, an increase for the third
consecutive year. Consequently, Japan's trade deficit was 6.9 trillion yen.
The deficit expanded from 2.6 trillion yen in 2011.

Figure 11.1
Foreign Trade
Trillion yen
90

80

70

60
Exports
50
Imports
40

30

200
1999 00 01 02 03 04 05 06 07 08 09 10 11 12

Source: Ministry of Finance.

111
 TRADE, INTERNATIONAL BALANCE OF PAYMENTS, AND
INTERNATIONAL COOPERATION

Table 11.1
Trends in Foreign Trade and Indices of Trade
Value (billion yen) Indices of trade (2005=100)
(Customs clearance basis) Exports Imports
Year Unit Unit
Exports Imports Value Quantum Value Quantum
Balance value value
(FOB) (CIF) index index 1) index index 1)
index index
2003 54,548 44,362 10,186 83.1 89.6 92.7 77.9 90.8 85.8
2004 61,170 49,217 11,953 93.2 99.2 93.9 86.4 97.2 88.9
2005 65,657 56,949 8,707 100.0 100.0 100.0 100.0 100.0 100.0
2006 75,246 67,344 7,902 114.6 107.7 106.4 118.3 103.8 113.9
2007 83,931 73,136 10,796 127.8 112.9 113.2 128.4 103.7 123.9
2008 81,018 78,955 2,063 123.4 111.2 111.0 138.6 103.0 134.6
2009 54,171 51,499 2,671 82.5 81.6 101.1 90.4 88.2 102.5
2010 67,400 60,765 6,635 102.7 101.4 101.3 106.7 100.5 106.2
2011 65,546 68,111 -2,565 99.8 98.4 101.5 119.6 103.7 115.4
2012 63,748 70,689 -6,941 97.1 93.9 103.4 124.1 105.9 117.2
1) Quantum index = Value index / Unit value index × 100
Source: Ministry of Finance.

Japan's 2012 exports increased by 1.9 percent from the previous year in
terms of unit value index (an increase for the third consecutive year), and
decreased by 4.6 percent from the previous year in terms of quantum index
(a decrease next to the preceding year).
Japan's imports in 2012, unit value index and quantum index, increased by
1.6 percent and 2.1 percent compared to the previous year; both indices
recorded their third consecutive year of increase.

(2) Trade by Commodity

Japan's exports in 2012 consisted of transport equipment, which accounted
for the largest portion of the total export value, 23.5 percent, followed by
general machinery and electrical machinery, making up 20.1 percent and
17.9 percent, respectively. Motor vehicles, which are in the transport
equipment category, constituted 14.5 percent of the total export value, up
9.0 percent in quantity and 12.4 percent in value from the previous year.
One characteristic of Japan's exports is the large proportion of high
value-added products manufactured with advanced technology, such as
motor vehicles, iron and steel and integrated circuits.

112
 TRADE, INTERNATIONAL BALANCE OF PAYMENTS, AND
INTERNATIONAL COOPERATION

The leading import item category was mineral fuels, which represented
34.1 percent of the total value imported, followed by electrical machinery
and chemicals, with 11.9 percent and 8.4 percent, respectively. Crude
petroleum and partially refined petroleum, in the mineral fuels category,
constituted 17.3 percent of the total import value, up 2.0 percent in
quantity and 7.3 percent in value from the previous year. In recent years,
the ratio of product imports has been rising due to the further
industrialization of the Asian region and overseas production relocations
by Japanese companies.

Figure 11.2
Component Ratios of Foreign Trade by Commodity (2012)
Transport equipment Mineral fuels

General
machinery 23.5% 34.1%

20.1 Electrical machinery

11.9
Exports Imports
Electrical 63.7 70.7 Chemicals
8.4
machinery 17.9
(trillion yen)
8.3 Foodstuffs
13.2
Manufactured 7.8 Manufactured goods 1)
goods 1) 7.1 General machinery
Chemicals 10.0 11.9 12.4
6.7 Raw materials
Raw materials 1.7
Mineral fuels 1.6 Others Others 3.3 Transport equipment

1) Consisting of iron and steel products, non-ferrous metals, textile yarn and fabrics, etc.
Source: Ministry of Finance.

113
 TRADE, INTERNATIONAL BALANCE OF PAYMENTS, AND
INTERNATIONAL COOPERATION

Table 11.2
Value of Exports and Imports, by Principal Commodity
(Billion yen)
Annual
Item 2009 2010 2011 2012 growth
(%)

Exports, total ............................................ 54,171 67,400 65,546 63,748 -2.7

 Foodstuffs ............................................... 366 406 359 355 -1.0
 Raw materials ......................................... 826 946 972 1,060 9.1
Mineral fuels ........................................... 948 1,105 1,247 1,026 -17.8
 Chemicals ............................................... 5,780 6,925 6,798 6,365 -6.4
  Plastics ................................................. 1,844 2,336 2,188 2,043 -6.6
 Manufactured goods 1) ............................ 7,017 8,785 8,786 8,442 -3.9
  Iron and steel products ......................... 2,906 3,675 3,709 3,496 -5.8
 General machinery .................................. 9,669 13,317 13,803 12,843 -7.0
  Power generating machinery ................ 1,839 2,327 2,317 2,261 -2.4
 Electrical machinery ............................... 10,771 12,650 11,600 11,405 -1.7
  Semiconductors and
other electronic parts ......................... 3,419 4,153 3,565 3,339 -6.3
 Transport equipment ............................... 11,850 15,258 14,033 14,995 6.8
  Motor vehicles ...................................... 6,693 9,174 8,204 9,225 12.4
 Others ...................................................... 6,944 8,007 7,948 7,258 -8.7
  Scientific and optical instruments ........ 1,578 2,014 2,109 2,084 -1.2

Imports, total ........................................... 51,499 60,765 68,111 70,689 3.8

 Foodstuffs ............................................... 4,999 5,199 5,854 5,852 -0.0
  Fish and fish preparation ...................... 1,208 1,260 1,350 1,400 3.7
 Raw materials ......................................... 3,395 4,766 5,270 4,768 -9.5
 Mineral fuels ........................................... 14,202 17,398 21,816 24,088 10.4
  Petroleum, crude and partly refined ..... 7,564 9,406 11,415 12,247 7.3
 Chemicals ............................................... 4,583 5,379 6,098 5,926 -2.8
  Medical and pharmaceutical products .. 1,329 1,523 1,725 1,941 12.5
 Manufactured goods 1) ............................ 4,345 5,379 6,069 5,508 -9.3
  Non-ferrous metals ............................... 1,013 1,606 1,813 1,370 -24.4
 General machinery .................................. 4,225 4,826 4,970 5,004 0.7
 Electrical machinery ............................... 6,509 8,101 7,989 8,438 5.6
  Communication equipment .................. 1,007 1,253 1,576 2,149 36.3
 Transport equipment ............................... 1,501 1,681 1,738 2,312 33.0
 Others ...................................................... 7,742 8,036 8,307 8,793 5.8
  Clothing and clothing accessories ........ 2,358 2,328 2,598 2,680 3.2
1) Consisting of iron and steel products, non-ferrous metals, textile yarn and fabrics, etc.
Source: Ministry of Finance.

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Figure 11.3
Japan's Major Export and Import Commodities (2012)

Exports Imports
Motor vehicles Petroleum
(9,225 billion yen) (12,247 billion yen)

Saudi Arabia
Others
U.S.A. 22.1
Others 32.9%
32.9%
43.4 Iran 5.1

Kuwait 7.5 U.A.E.

21.8
Australia 8.2
Russia 6.8 Qatar 10.6
U.A.E. 3.5 China 5.2

Iron and steel Clothing

(3,496 billion yen) (2,680 billion yen)
Korea, Rep. of Others
Italy 2.8
16.9% 13.7
Vietnam 6.4
Others
41.2 China
15.6 China
77.1%
12.7

Taiwan 6.3 Thailand

U.S.A. 7.3

Semiconductors Communication equipment

(3,339 billion yen) Others (2,149 billion yen)
Taiwan 2.6
Malaysia 4.3 9.4
Others China U.S.A. 4.3
29.5 29.3%
Korea, Rep. of 11.5 China
67.9%
16.0
Korea, Rep. of 11.7 Taiwan
6.7
U.S.A. 6.8
Hong Kong SAR

Source: Ministry of Finance.

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(3) Trade by Country/Region

Japan has maintained a trade surplus with Asia and the U.S.A., while has
been in a continuous deficit with the Middle East and Oceania.

Table 11.3
Trends in Exports and Imports by Country/Region
(Billion yen)

Korea,
Middle
Year Total Asia China Taiwan U.S.A. EU 27 Oceania
Rep. of East
Exports from Japan
2008 81,018 39,966 12,950 6,168 4,782 14,214 11,430 3,508 2,200
2009 54,171 29,338 10,236 4,410 3,399 8,733 6,749 2,013 1,409
2010 67,400 37,827 13,086 5,460 4,594 10,374 7,616 2,216 1,796
2011 65,546 36,686 12,902 5,269 4,058 10,018 7,619 1,955 1,778
2012 63,748 34,855 11,509 4,911 3,673 11,188 6,501 2,262 1,837
Imports to Japan
2008 78,955 32,034 14,830 3,052 2,258 8,040 7,292 17,351 5,378
2009 51,499 22,989 11,436 2,051 1,711 5,512 5,518 8,640 3,542
2010 60,765 27,511 13,413 2,504 2,025 5,911 5,821 10,387 4,327
2011 68,111 30,391 14,642 3,170 1,852 5,931 6,411 12,832 4,893
2012 70,689 31,306 15,039 3,234 1,921 6,082 6,642 13,542 4,901
Source: Ministry of Finance.

(A) Trade with Asia

Japan's 2012 trade balance with Asia resulted in 3.5 trillion yen in surplus,
a decrease for the second consecutive year (down 43.6 percent from the
previous year). Exports (in FOB value) totaled 34.9 trillion yen (down 5.0
percent), marking a decrease next to the preceding year; this was mainly
due to the contributions for the decrease in general machinery and
manufactured goods. Imports (in CIF value) amounted to 31.3 trillion yen
(up 3.0 percent), an increase for the third consecutive year; this was mainly
attributed to the increase in electrical machinery and mineral fuels.
In 2012, Japan's trade with China amounted to 11.5 trillion yen in exports
and 15.0 trillion yen in imports. Trade with China accounts for about 20
percent of the value of both Japan's imports and its exports. China is
therefore Japan's largest trade partner.

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Figure 11.4
Japan's Foreign Trade by Country/Region (2012)

Exports (total: 63,748 billion yen)

Asia Imports (total: 70,689 billion yen)
(excl. China)

23,346 16,267 billion yen

15,039 11,188
China U.S.A.

Japan
11,509 6,082
13,542 6,501

2,262 6,642
Middle
EU 27
East

Source: Ministry of Finance.

(B) Trade with U.S.A.

Japan's 2012 trade balance with the U.S.A. showed a surplus of 5.1 trillion
yen. This was bigger than the previous year (up 25.0 percent). Exports (in
FOB value) amounted to 11.2 trillion yen (up 11.7 percent), the first
increase in two years. Transport equipment and general machinery made
major contributions to the increase. Imports (in CIF value) totaled 6.1
trillion yen (up 2.5 percent), the third consecutive annual increase. The rise
was due mainly to the contributions of transport equipment and mineral
fuels.

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(C) Trade with EU

As for trade with the EU (27 countries) in 2012, exports (in FOB value)
decreased for almost all products, including general machinery and
transport equipment. Exports therefore fell by 14.7 percent year-on-year, to
6.5 trillion yen. Imports (in CIF value), on the other hand, led by increases
in transport equipment and chemicals, rose by 3.6 percent year-on-year, to
6.6 trillion yen. The resulting trade balance was a deficit of 141.2 billion
yen. It was the first trade deficit with the EU (27 countries) since Japan
began keeping the statistic in January 2007.

Figure 11.5
Trends in Japan's Trade by Country/Region

Exports from Japan Imports to Japan

Trillion yen Trillion yen
18 18

16 16 China
U.S.A.

14 14

12 12

EU 1)
10 10
U.S.A.
8 China 8

Korea, Rep. of
6 6
EU 1)
4 4 Korea, Rep. of

2 Taiwan 2
Taiwan
0 0
2003 05 07 09 11 12 2003 05 07 09 11 12

1) 15 countries: before May 2004, 25 countries: from May 2004 to Dec. 2006, 27 countries: from
Jan. 2007 onward.
Source: Ministry of Finance.

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2. International Balance of Payments

In 2012, Japan's current account surplus dropped to 4.8 trillion yen, half
that of the previous year. This was mainly because the trade deficit
expanded. Breaking down the current account, in the trade balance,
exports decreased, while imports, led by mineral fuels, increased. This led
to a trade deficit of 5.8 trillion yen. The services balance posted a deficit of
2.5 trillion yen. The deficits grew for both the trade balance and the
services balance. The income balance rose 1.7 percent year-on-year, to
14.3 trillion yen. It was the second straight year with a surplus.
On the other hand, the balance of the capital and financial account
registered a deficit of 8.2 trillion yen, scoring a red ink figure (excess
outflow) for the first time in two years.

Table 11.4
International Balance of Payments
(Billion yen)
Item 2009 2010 2011 2012
Current account ................................. 13,735.6 17,887.9 9,550.7 4,823.7
Goods and services ...................... 2,124.9 6,564.6 -3,378.1 -8,304.1
Trade balance ........................ 4,038.1 7,978.9 -1,616.5 -5,814.1
Exports ............................ 50,857.2 63,921.8 62,724.8 61,442.1
Imports ............................. 46,819.1 55,942.9 64,341.2 67,256.2
Services ................................. -1,913.2 -1,414.3 -1,761.6 -2,490.0
Income ......................................... 12,774.2 12,414.9 14,038.4 14,272.3
Current transfers .......................... -1,163.5 -1,091.7 -1,109.6 -1,144.5
1)
Capital and financial account ......... -14,267.8 -17,697.1 1,172.2 -8,187.8
Financial account ......................... -13,802.5 -17,263.0 1,144.0 -8,107.4
Direct investment .................. -5,872.5 -5,048.7 -8,727.5 -9,640.1
Portfolio investment .............. -20,505.3 -13,249.3 12,925.5 -3,221.5
Financial derivatives .............. 948.7 1,026.2 1,347.0 -590.3
Other investment ................... 11,626.6 8.9 -4,401.0 5,344.5
Capital account ............................ -465.3 -434.1 28.2 -80.4
1)
Changes in reserve assets ............... -2,526.5 -3,792.5 -13,789.7 3,051.5
Errors and omissions ......................... 3,058.7 3,601.7 3,066.9 312.6
1) Negative figures (-) show outflow of capital (an increase in assets or a decrease in
liabilities).
Source: Ministry of Finance.

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Japan's foreign assets (the balance of overseas assets held by residents in

Japan) as of the end of 2012 amounted to 661.9 trillion yen, while its
foreign liabilities (assets held in Japan by nonresidents) were 365.6 trillion
yen. As a result, Japan's net foreign assets (foreign assets minus foreign
liabilities) were 296.3 trillion yen.

Table 11.5
Trends in Japan's Foreign Assets and Liabilities 1)
(Billion yen)
Item 2008 2009 2010 2011 2012
Assets .................................... 519,179 554,826 560,215 581,509 661,902
Liabilities .............................. 293,271 286,580 304,308 316,083 365,588
Net assets .............................. 225,908 268,246 255,906 265,426 296,315
1) End of year.
Source: Ministry of Finance.

Japan's foreign reserve assets remained at around 220 billion U.S. dollars
during the period from 1996 to 1998. Beginning in 1999, foreign reserve
assets increased continuously. At the end of 2012, however, they began to
decrease, falling to 1,268.1 billion U.S. dollars (down 2.1 year-on-year).

Table 11.6
Reserve Assets
(Million U.S. dollars)
Reserve Other
Foreign 2)
End of year Total position SDRs Gold reserve
currency 1)
in IMF assets 3)
2008 1,030,647 1,003,300 2,659 3,033 21,281 374
2009 1,049,397 996,552 4,313 20,968 27,161 403
2010 1,096,185 1,035,817 4,608 20,626 34,695 439
2011 1,295,841 1,220,785 17,181 19,745 37,666 464
2012 1,268,125 1,193,077 13,697 19,911 40,939 501
1) Including securities in market value. 2) Market value. 3) Including Asian Bond Fund.
Source: Ministry of Finance.

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The yen against the U.S. dollar was 83.19 yen in May 1995. The trend
subsequently shifted to a progressively weaker yen, which eventually
reached 143.79 yen in July 1998. After hovering between the 100 and 140
yen ranges for the most part, the yen began appreciating sharply in late
2008. From 2011 into 2012, the yen stayed between the higher 70 yen
range and the lower 80 yen range. In January 2013, the Japanese
Government announced economic policies such as monetary easing,
raising market confidence and accelerating the yen's depreciation. As of
the end of June 2013, the yen had reached 98.83 to the U.S. dollar.

Figure 11.6
Yen Exchange Rate against the U.S. Dollar

70
Yen

80
90
100
110
120
130
140
150
160
1995 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Source: Bank of Japan.

3. International Cooperation
In Japan, there are diverse international cooperation donors: official
development assistance (ODA) by the government, direct investments and
export credits by private corporations, donations by nonprofit
organizations, aid activities by NGOs and volunteer citizen groups, etc. In
addition, there are various forms of assistance, including bilateral
assistance and assistance through multilateral institutions.

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Table 11.7
Net Flow of Development Cooperation 1)
(Million U.S. dollars)
Item 1995 2000 2005 2010 2011
Total value ................................................................ 42,295 11,423 23,259 48,213 61,828
Official flows ......................................................... 20,033 8,467 10,726 14,683 13,736
Official development assistance (ODA) .............. 14,489 13,508 13,147 11,021 10,831
Bilateral official development assistance 2) ....... 10,419 9,768 10,406 7,337 6,592
Grants 2) ........................................................... 6,298 5,678 9,195 6,943 8,216
Grants-in-aid 2) ............................................... 2,876 2,100 6,524 3,464 4,682
Technical cooperation .................................... 3,422 3,578 2,671 3,478 3,534
Loans, etc. ........................................................ 4,120 4,090 1,212 395 -1,624
3)
Contributions to multilateral institutions, etc. 4,071 3,740 2,740 3,684 4,239
Other official flows (OOF) .................................. 5,544 -5,041 -2,421 3,662 2,905
Official export credits (over one year) ............... 981 -1,239 -1,202 -1,039 -622
Direct investment finance, etc. ........................... 3,541 -3,709 -222 4,217 3,889
Concessional lending to multilateral institutions, etc. ...... 1,021 -93 -997 485 -362
Private flows at market terms (PF) ........................ 22,046 2,725 12,278 32,837 47,594
Private export credits (over one year) .................. 3,054 -799 -3,433 2,767 1,853
Direct investments ............................................... 9,398 2,874 14,472 21,650 40,315
Bilateral investment in securities, etc. ................. 9,543 702 1,158 7,428 5,844
Concessional lending to multilateral institutions, etc. ........ 50 -52 81 992 -419
Grants by private voluntary agencies ..................... 216 231 255 692 497
ODA as percentage of GNI (%) ............................... a) 0.28 0.28 0.28 0.20 * 0.18
ODA as percentage of GNI (DAC average) (%) ...... a) 0.27 0.22 0.33 0.32 * 0.31
1) Net disbursement at current prices. Negative figures (-) indicate that loan repayments, etc.,
exceeded the disbursed amount. 2) Beginning in 2010, the data include bilateral grants
through multilateral institutions. 3) Starting in 2010, expenditures clearly addressing a
country at the point of disbursement are considered as bilateral ODA. a) ODA as percentage
of GNP (%).
Source: Ministry of Foreign Affairs; Ministry of Finance; OECD.

In the ODA framework, Japan has contributed to the growth of developing

countries as the world's number-one ODA donor for ten consecutive years
up until 2000. Recently, Japan's ODA budget has been declining because
of the country's severe economic and financial situation. Its 2011 ODA
spending (on the basis of net disbursement at current prices) decreased by
1.7 percent over the previous year to 10.8 billion U.S. dollars.
In 2011, the 23 member countries of the Development Assistance
Committee (DAC) of the OECD provided 133.5 billion U.S. dollars in
ODA. Of this total, Japan's ODA contribution accounted for 7.9 percent,

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making Japan the fifth-largest contributor behind the U.S.A., Germany, the
U.K. and France. The ratio of Japan's ODA to Gross National Income
(GNI) was 0.18 percent, or a decrease of 0.02 percentage points compared
with that of the previous year.

Figure 11.7
Trends in ODA by Country 1)
Billion U.S. dollars
35

U.S.A.
30

25

20
Japan Germany
15 U.K. France

10
Italy Canada
5

0
1998 99 00 01 02 03 04 05 06 07 08 09 10 11*

1) Net disbursement at current prices.

Source: Ministry of Foreign Affairs; OECD.

Of the 10.8 billion U.S. dollars in ODA provided by Japan in 2011, 6.6
billion U.S. dollars or 60.9 percent was bilateral ODA (down 10.2 percent
year-on-year), and 4.2 billion U.S. dollars or 39.1 percent was ODA
contributed through multilateral institutions (up 15.1 percent).
Bilateral ODA provided in 2011 consisted of 4.7 billion U.S. dollars in
grants-in-aid, 3.5 billion U.S. dollars in technical cooperation, and -1.6
billion U.S. dollars in loans, etc. (negative value indicates a larger amount
of repayment received in 2011 than the amount lent in the same year).

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By region, bilateral ODA (including aid to Eastern European countries and

graduated countries) was distributed as follows: Sub-Saharan Africa, 26.6
percent; Asia, 21.1 percent; Middle East and North Africa, 14.6 percent;
Latin America and the Caribbean, 5.1 percent; Europe, 2.7 percent; and
Oceania, 2.4 percent.

Table 11.8
Regional Distribution of Bilateral ODA 1)
(Million U.S. dollars)
Region 1995 2000 2005 2010 2011
Total .................................................. 10,557 9,640 10,464 7,428 6,511
Asia ................................................ 5,745 5,284 3,841 2,528 1,371
2)
ASEAN .................................... 2,229 # 3,126 1,968 902 -169
Middle East .................................... 721 727 3,477 … …
Africa ............................................. 1,333 970 1,139 … …
Middle East and North Africa ........ … … … 1,592 952
Sub-Saharan Africa ........................ … … … 1,733 1,734
Latin America and the Caribbean .. 1,142 800 409 -344 335
Oceania .......................................... 160 151 94 176 159
Europe ............................................ 153 118 309 181 174
Multiple regions, etc. ..................... a) 1,303 1,592 1,194 1,562 1,785
1) Net disbursement at current prices. Including aid to Eastern European countries and
graduated countries. Negative figures (-) indicate that loan repayments, etc., exceeded the
disbursed amount. 2) The data in 1995: 9 countries, the data from 2000: 10 countries. a)
ODA not classifiable by region.
Source: Ministry of Foreign Affairs.

Bilateral ODA in 2011 (including aid to Eastern European countries and

graduated countries) was broken down by purpose (on a commitment
basis) as follows: 41.5 percent for improving the economic infrastructure,
followed in descending order by social and administrative infrastructure
(including education, water supply and sanitation), with 24.5 percent.

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Figure 11.8
Distribution of Bilateral ODA by Sector (2011) 1)

Debt relief 0.6 Others

14.3
Production Economic infrastructure
9.3 41.5%
15.54 billion
U.S. dollars
Multisector 9.8

24.5
Social and administrative
infrastructure

1) Commitment basis. Including aid to Eastern European countries and graduated countries.
Source: Ministry of Foreign Affairs.

In addition to the financial assistance described above, Japan has also been
active in the areas of human resources development and technology
transfer, both vital to the growth of a developing country, through its ODA
activities.

Table 11.9
Number of Persons Involved in Technical Cooperation by Type 1)
Type of cooperation FY2000 FY2005 FY2009 FY2010 FY2011
Total ............................................. 31,968 37,291 44,652 41,212 46,799
Trainees received ....................... 17,513 24,504 29,982 23,978 27,847
Dispatched
 Experts ..................................... 3,381 3,488 6,659 8,296 9,082
Research team ......................... 9,428 6,862 5,788 7,046 8,527
Japan Overseas
Cooperation Volunteers ........ 1,370 1,804 1,708 1,459 1,046
Other volunteers ...................... 276 633 515 433 297
1) Numbers of persons newly received/dispatched in the aforementioned fiscal year.
Source: Japan International Cooperation Agency.

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 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 12
Labor

© SHIMOSATO Sachiko

Ama female divers who harvest shellfish, seaweed, etc., underwater. In 2012, 160,000
persons (0.3 percent of total employed persons) worked in Japan's fisheries industry.
 LABOR

Because of the effects of the Great East Japan Earthquake that occurred in
March 2011, the data on labor in 2011 (1. Labor Force - 3.
Unemployment) is supplementary estimated figures.

1. Labor Force
The labor force, defined as the sum of the employed and unemployed in
population of 15 years old or more, numbered 65.55 million people in
Japan in 2012, down 360,000 (0.5 percent) from the previous year.
As for trends in Japan's labor force, until the mid-1990s, both the labor
force and the number of persons employed grew along with the population
and the working-age population. In 1997, the working-age population
began decreasing, and the labor force and the number of persons employed
shifted to a downward trend. The labor force is expected to shrink in the
long run as the falling birth rate and the aging population change the
population composition.
The 2012 labor force participation rate (rate of the labor force to the
population aged 15 years and over) was 59.1 percent (down 0.2 percentage
points from the previous year). Observed by gender, the rate was 70.8
percent for men (down 0.3 percentage points) and 48.2 percent for women
(the same rate as the previous year).

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Table 12.1
Population by Labor Force Status
(Thousands)
Population Unemploy-
Labor force Not in labor
Year aged 15 years ment rate
force
and over Total Employed Unemployed (%)
Total
1995 105,100 66,660 64,570 2,100 38,360 3.2
2000 108,360 67,660 64,460 3,200 40,570 4.7
2005 # 110,080 # 66,510 # 63,560 # 2,940 # 43,460 4.4
2009 110,990 66,500 63,140 3,360 44,460 5.1
2010 111,110 66,320 62,980 3,340 44,730 5.1
1)
2011 111,110 65,910 62,890 3,020 45,170 4.6
2012 110,980 65,550 62,700 2,850 45,400 4.3
Males
1995 51,080 39,660 38,430 1,230 11,390 3.1
2000 52,530 40,140 38,170 1,960 12,330 4.9
2005 # 53,230 # 39,010 # 37,230 # 1,780 # 14,160 4.6
2009 53,640 38,690 36,660 2,030 14,940 5.3
2010 53,650 38,500 36,430 2,070 15,130 5.4
2011 1) 53,630 38,220 36,360 1,870 15,380 4.9
2012 53,550 37,890 36,160 1,730 15,650 4.6
Females
1995 54,020 27,010 26,140 870 26,980 3.2
2000 55,830 27,530 26,290 1,230 28,240 4.5
2005 # 56,850 # 27,500 # 26,330 # 1,160 # 29,300 4.2
2009 57,360 27,820 26,490 1,330 29,520 4.8
2010 57,460 27,830 26,560 1,270 29,600 4.6
2011 1) 57,480 27,680 26,530 1,150 29,790 4.2
2012 57,420 27,660 26,540 1,120 29,760 4.0
1) Supplementary estimated figures (excluding "Population aged 15 years and over").
Source: Statistics Bureau, MIC.

The female labor force participation rate by age group shows an M-shaped
curve. This curve indicates that women leave the labor force when they get
married or give birth to a child and then rejoin the labor force after their
child has grown and the burden of child-rearing is reduced. A comparison
with the data from twenty years ago (1992) shows that, in 2012, the 35-39
age group replaced the 30-34 age group to form the bottom of the
M-shaped curve. The participation rate rose by 15.9 percentage points in

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 LABOR

the 30-34 age group and by 5.3 percentage points in the 35-39 age group,
resulting in a noticeable change in the bottom of the curve: it has become
flatter and more gradual.

Figure 12.1
Labor Force Participation Rate by Gender
% %
100 100

Males Females
80 80

60 60

40 40
1992
2012
20 20

0 0
15 20 25 30 35 40 45 50 55 60 65 70 15 20 25 30 35 40 45 50 55 60 65 70
｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜＋ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜＋
19 24 29 34 39 44 49 54 59 64 69 19 24 29 34 39 44 49 54 59 64 69

Source: Statistics Bureau, MIC.

2. Employment
The number of employed persons in Japan had declined continuously since
1998, but it began to rise in 2004 and continued rising for four years in a
row. However, a downward trend set in once again in 2008, which led to a
decrease of 190,000 in 2012, from 62.89 million (56.6 percent of the
population aged 15 years and over) in the previous year to 62.70 million
(56.5 percent).

(1) Employment by Industry

In 2012, the primary industry accounted for 3.9 percent of employment;
the secondary industry, 24.8 percent; and the tertiary industry, 71.4
percent.

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 LABOR

Figure 12.2
Structure of Employment by Country
%
100

80

Tertiary
60 industry

40

20 Secondary
industry
Primary
0
industry
Japan U.S.A. U.K. Poland Turkey Thailand
(1970) 1) (1990) (2012) (2008) (2008) (2008) (2008) (2008)

1) Excluding Okinawa prefecture.

Source: Statistics Bureau, MIC; International Labour Organization.

Over the long term, the percentage employed in primary industry has been
continually falling, while the percentage employed in tertiary industry has
been continually rising. The percentage employed in secondary industry
has also been trending downward.
By industry, the number of persons employed in the primary industries of
agriculture and forestry, and in the secondary industries of manufacturing
and construction has been on a downward trend.

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Table 12.2
Employment by Industry
(Thousands)
Percentage
Industries 2009 2010 2011 1) 2012
Males Females
2)
Total ................................................. 63,140 62,980 62,890 62,700 57.7 42.3
Primary industry ............................ 2,640 2,550 2,490 2,400 61.3 38.8
Agriculture and forestry ................. 2,440 2,370 2,310 2,240 60.3 39.7
Fisheries ......................................... 200 180 180 160 75.0 25.0
Secondary industry ........................ 16,070 15,670 15,540 15,380 75.7 24.3
Mining and quarrying of stone
and gravel ................................. 30 30 30 30 - -
Construction ................................... 5,220 5,040 5,020 5,030 86.1 13.9
Manufacturing ................................ 10,820 10,600 10,490 10,320 70.5 29.5
Tertiary industry ........................... 43,800 44,110 44,310 44,300 51.3 48.7
Electricity, gas, heat supply and water ..... 340 340 310 310 87.5 12.5
Information and communications .. 1,940 1,970 1,900 1,880 74.5 25.5
Transport and postal activities ....... 3,500 3,520 3,510 3,400 82.4 17.6
Wholesale and retail trade .............. 10,590 10,620 10,570 10,420 49.7 50.3
Finance and insurance .................... 1,650 1,630 1,620 1,630 47.2 52.8
Real estate and goods rental
and leasing ............................... 1,100 1,100 1,130 1,120 63.4 36.6
Scientific research, professional
and technical services ............. 1,950 1,980 2,080 2,050 67.3 32.7
Accommodations, eating
and drinking services .................. 3,790 3,860 3,820 3,760 38.6 61.4
Living-related and personal services
and amusement services .............. 2,410 2,400 2,420 2,390 41.4 58.6
Education, learning support ........... 2,880 2,890 2,940 2,950 44.4 55.6
Medical, health care and welfare ... 6,230 6,560 6,780 7,060 24.8 75.2
Compound services ........................ 520 450 440 470 59.6 40.4
Services, n.e.c. ............................... 4,650 4,560 4,570 4,620 59.0 41.0
Government 3)................................. 2,250 2,230 2,220 2,240 75.9 24.1
1) Supplementary estimated figures. 2) Including "Industries unable to classify." 3) Except
elsewhere classified.
Source: Statistics Bureau, MIC.

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 LABOR

Figure 12.3
Distribution of Employment by Industry (2012)
(2010)
%
0 20 40 60 80 100
Primary industry
Secondary industry Tertiary industry

Medical, health Others

Agriculture, Construction care and welfare Transport
forestry and Manufacturing and postal Education，
Wholesale and
fisheries activities learning support
retail trade
Mining, quarrying Accommodations,
of stone and gravel eating and drinking services

Source: Statistics Bureau, MIC.

In the tertiary industry, which accounted for approximately 70 percent of

all industry, employment increased from the previous year by 280,000 in
the "medical, health care and welfare" sector. Meanwhile, employment in
"wholesale and retail trade" and "transport and postal activities" decreased
by 150,000 and 110,000, respectively.
Depending on the industrial sector, a difference was seen in the
employment tendency between men and women. In 2012, the percentage
of female employment was highest in "medical, health care and welfare"
(75.2 percent), followed by "accommodations, eating and drinking
services" (61.4 percent) and "living-related and personal services and
amusement services" (58.6 percent).

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 LABOR

(2) Employment by Occupation

In terms of occupation, employment in the "manufacturing process
workers" category has been declining in recent years, due to the overseas
relocation of production sites and increased imports of manufactured
goods. The number of "manufacturing process workers" was 9.02 million
in 2012, down 0.3 percent from the previous year's 9.05 million. In
contrast, the trend toward a service-oriented economy, the aging
population, and improvements to the welfare services have been on a
rising trend over the last few years in the number of "service workers"
such as home-care workers. At the same time, the expansion of the
information industry gave a steady boost to the number of "professional
and engineering workers."

Table 12.3
Employment by Occupation
(Thousands)
Percentage
Occupation 2009 2010 2011 1) 2012
Males Females
2)
Total ..................................................... 63,140 62,980 62,890 62,700 57.7 42.3
Administrative and managerial workers ....... 1,690 1,620 1,580 1,530 88.9 11.1
Professional and engineering workers..... 9,440 9,610 9,870 10,100 53.7 46.3
Clerical workers....................................... 12,460 12,370 12,340 12,140 40.9 59.1
Sales workers .......................................... 8,910 8,900 8,920 8,750 58.0 42.0
Service workers........................................ 7,390 7,540 7,530 7,580 33.0 67.0
Security workers ...................................... 1,220 1,240 1,230 1,220 94.3 5.7
Agricultural, forestry and fishery workers ... 2,630 2,530 2,460 2,370 63.1 36.9
Manufacturing process workers .............. 9,390 9,250 9,050 9,020 71.4 28.6
Transport and machine operation workers ... 2,240 2,230 2,230 2,220 97.3 2.7
Construction and mining workers ........... 3,070 2,990 3,010 3,020 98.3 1.7
Carrying, cleaning, packaging,
and related workers............................ 4,140 4,130 4,140 4,140 54.8 45.2
1) Supplementary estimated figures. 2) Including "Labor force status not reported."
Source: Statistics Bureau, MIC.

In 2012, percentages of male and female employed persons by occupation

shows that men were particularly prominent among "construction and
mining workers" (98.3 percent) and "transport and machine operation
workers" (97.3 percent). Women were prominent among "service workers"
(67.0 percent) and "clerical workers" (59.1 percent).

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 LABOR

(3) Employment by Employment Pattern

Observation of employment by patterns in Japan shows that regular staff
members have been on a declining trend since the late 1990s, while
non-regular staff members, including part-time workers and
agency-dispatched workers, have increased almost continuously.

Figure 12.4
Percentage of Non-Regular Staff Members by Gender 1)
%
%
60

50 Females

40

30 Total

20

Males
10

0
2)
2002 03 04 05 06 07 08 09 10 11 12

1) Yearly average. 2) Supplementary estimated figures.

Source: Statistics Bureau, MIC.

In 2012, there were 51.54 million employees (excluding company

executives), of whom 18.13 million, or 35.2 percent, were non-regular
staff members. The ratio of non-regular staff members among all male
employees was 19.7 percent, while the corresponding ratio for females was
54.5 percent, revealing a large difference between the genders.

134
 LABOR

A breakdown of non-regular staff members by age group shows that

among men, many young and elderly men are employed as non-regular
staff members relative to other age groups. Among women, the older the
age group is, the greater the non-regular staff ratio is.

Table 12.4
Employment by Employment Pattern (2012)
(Thousands)
1)
Employees Regular staff Percentage Non-regular staff Percentage
Total 51,540 33,400 64.8 18,130 35.2
Males 28,650 23,000 80.3 5,660 19.7
Females 22,880 10,410 45.5 12,470 54.5
1) Excluding company executives.
Source: Statistics Bureau, MIC.

Figure 12.5
Employment Pattern by Gender and Age (2012)

Males Females
% %
100 100
Regular
staff
80 80

60 60

40 40

Non-regular
20 staff 20

0 0
15 25 35 45 55 65 15 25 35 45 55 65
| | | | | + | | | | | +
24 34 44 54 64 24 34 44 54 64

Source: Statistics Bureau, MIC.

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 LABOR

Factors behind the rise in non-regular staff members include labor

cost-cutting and the trend where seeking work-ready, pre-trained workers
was preferred to developing human resources by hiring new graduates. As
a result, there was a change in terms of employment patterns in that
non-regular staff members increased, particularly among young people.
The employment rate of new graduates had been worsening as a result of
the economic slowdown since 2008, but their employment situation
showed a sign of improvement in 2012.

3. Unemployment
In 2012 the unemployed numbered 2.85 million persons, down 5.6 percent
from the previous year. The unemployment rate was 4.3 percent, down 0.3
percentage points from the previous year.
After the ratio of job openings to job seekers peaked out in 2006, it was on
a falling trend in recent years. The ratio has been increasing since 2009
and is gradually recovering.

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 LABOR

Figure 12.6
Unemployment Rate and Ratio of Job Openings to Job Seekers
% Times
6 1.6
Unemployment rate 1)
(left scale) 1.4
5 ▼
1.2
4
1.0

3 0.8

0.6
2

▲ 0.4
1 Ratio of job openings to job seekers
(right scale) 0.2

0 0.0
1986 88 90 92 94 96 98 00 02 04 06 08 10 12
1) The data for 2011 indicates supplementary estimated figure.
Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare.

A breakdown by gender shows that the unemployment rate in 2012 was

4.6 percent among men, and 4.0 percent among women. The
unemployment rate has been higher among men for fifteenth consecutive
years since 1998.
The unemployment rate was seen as notably higher in younger age groups
than in other age groups, in men and women alike.

137
 LABOR

Figure 12.7
Unemployment Rates by Gender and Age (2012)
%
0 2 4 6 8 10

15-24

Males
25-34 Females

35-44

45-54

55-64

65+

Source: Statistics Bureau, MIC.

Analyzing the total number of unemployed in 2012 (2.85 million people),

by reasons for job-seeking, the major reasons were: (i) involuntarily
dismissed due to corporate or business circumstances, or reaching
retirement age limit, 1.02 million persons; (ii) voluntarily left their jobs for
personal or family reasons, 1.01 million persons; (iii) new job seekers due
to the necessity to earn income, 0.37 million; and (iv) new job seekers just
graduated from schools, 0.16 million.
In terms of the duration of unemployment, most were unemployed for "1
year or more" (1.07 million persons), followed by "less than 3 months"
(0.85 million persons). The younger a job seeker is, the shorter the
job-seeking period tends to be; on the other hand, the older a person, the
longer the job-seeking period tends to be.

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 LABOR

Figure 12.8
Unemployment Rates by Country
%
14

Germany
12

10
France

8
Italy
U.K.
U.S.A.
6 Canada
Japan 1)

Korea, Rep. of
2

0
2003 04 05 06 07 08 09 10 11 12
1) The data for 2011 indicates supplementary estimated figure.
Source: Statistics Bureau, MIC; Cabinet Office.

4. Hours of Work and Wages

In 2012, the monthly average of total hours worked was 147.1 per regular
employee (in establishments with five or more regular employees), up 0.5
percent from the previous year, and an annual average of 1,765 hours.
Of the total monthly hours worked, 136.7 were scheduled working hours,
representing an increase of 0.5 percent from the previous year.
Non-scheduled work such as overtime work averaged 10.4 hours per
month, representing an increase of 0.6 percent from the previous year.
Working days averaged 19.1 days per month in 2012.

139
 LABOR

In 2012, the monthly average of total cash earnings per regular employee
(in establishments with five or more regular employees) was 314,000 yen.
This total amount includes 262,000 yen in "contractual cash earnings"
(which include "scheduled cash earnings" plus "non-scheduled cash
earnings" for working overtime, on holidays and late at night, as well as
other allowances), and 53,000 yen in "special cash earnings" (which
include summer and year-end bonuses, payments to celebrate employees'
marriages, etc.).

Table 12.5
Hours of Work and Wages 1) (Monthly average)
Hours of Work Wages (1,000 yen)
Days
Year Non- Non- Special 2)
worked Total Scheduled Total Contractual Scheduled
scheduled scheduled
1995 20.3 159.2 149.6 9.6 363 282 264 18 81
2000 20.0 154.4 144.6 9.8 355 284 265 19 72
2005 19.5 150.2 139.8 10.4 335 273 253 19 62
2010 19.0 146.2 136.2 10.0 317 263 245 18 54
2011 19.0 145.6 135.6 10.0 317 262 244 18 54
2012 19.1 147.1 136.7 10.4 314 262 243 19 53
Indices (2010 average=100) 3)
1995 - 108.5 109.4 96.0 110.6 103.4 104.1 - -
2000 - 105.4 105.8 98.2 110.5 106.4 106.7 - -
2005 - 102.9 102.7 104.3 104.7 102.8 102.6 - -
2010 - 100.0 100.0 100.0 100.0 100.0 100.0 - -
2011 - 99.8 99.7 101.0 99.8 99.6 99.4 - -
2012 - 100.3 100.2 101.6 99.1 99.5 99.2 - -
1) Establishments with 5 or more regular employees. 2) Bonuses and other special
allowances. 3) Data was recalculated for sample adjustments.
Source: Ministry of Health, Labour and Welfare.

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 LABOR

Generally, the average earnings (scheduled cash earnings) in Japan go up

with age until roughly the 40s to mid-50s are reached and then declines.
This reflects one characteristic of Japan's seniority employment system in
which salaries are determined mainly on the basis of employment duration.
Into the 1990s, an increasing number of enterprises reviewed their salary
system, resulting in more widespread introduction of a merit-based pay
system placing emphasis on performance. There has been a trend in recent
years, particularly among large enterprises, to value the practice of
long-term employment once again and attach importance to job execution
skills.

Figure 12.9
Monthly Contractual Cash Earnings by Size of Enterprise (2012)
Thousand yen Thousand yen
600 600
Males Females
500 500

400 400

300 300

200 200
1,000 and over
100-999
100 100
10-99 workers

0 0
15 20 25 30 35 40 45 50 55 60 65 70 15 20 25 30 35 40 45 50 55 60 65 70
｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ + ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ ｜ +
19 24 29 34 39 44 49 54 59 64 69 19 24 29 34 39 44 49 54 59 64 69

Source: Ministry of Health, Labour and Welfare.

141
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 13
Family Budgets and Prices

© ITOU Yoshitoki

The interior of a Japanese-style confectionary shop. According to the Family Income

and Expenditure Survey (two-or-more-person households), the average household
spent 78,000 yen on cakes and candies (such as "manju" bean-jam cakes, etc.) in
2012.
 FAMILY BUDGETS AND PRICES

1. Family Budgets
In 2010, there were approximately 52 million households in Japan, of
which about 70 percent are two-or-more-person households and about 30
percent are one-person households. Family budgets vary significantly
depending on the employment situation and ages of their members. In this
section, family budgets in various types of households are described on the
basis of the 2012 results of the Family Income and Expenditure Survey.

(1) Income and Expenditure

(A) Two-or-more-person Households

The 2012 average monthly consumption expenditures per
two-or-more-person households (the average number of household
members being 3.07 and the average age of the household head being 57.5
years) was 286,169 yen. Compared to the previous year, it increased by 1.1
percent in both nominal and real terms. The share of food expenses to the
whole consumption expenditures (Engel's coefficient) was 23.5 percent.

Figure 13.1
Average Monthly Consumption Expenditures
(Two-or-more-person households) (2012)
%
0 20 40 60 80 100

Consumption
Food Others
expenditures 23.5% 8.0 14.0 10.0 8.1
14.0
286,169 yen
Housing 6.4 Social expenses
Fuel, light & water charges Culture & recreation
Furniture & household utensils 3.5 Education 4.1
Transportation & communication
Clothing & footwear 4.0
Medical care 4.5
Source: Statistics Bureau, MIC.

(a) Workers' Households

A workers' household means a household of which the head is employed
by a company, public office, school, factory, store, etc. The average
income of workers' households (the average number of household

143
 FAMILY BUDGETS AND PRICES

members being 3.42 and the average age of the household head being 47.8
years) was 518,506 yen in 2012, of which about 80 percent came from the
household head's income.

Table 13.1
Average Monthly Income and Expenditures (Workers' households 1))
(Thousand yen)
Item 2008 2009 2010 2011 2012
Income (A) ..................................................... 534.2 518.2 520.7 510.1 518.5
Wages and salaries ....................................... 500.7 484.9 485.3 473.1 479.6
Others .......................................................... 33.5 33.3 35.4 37.0 38.9
Disposable income (A-C) .............................. 442.7 427.9 430.0 420.5 425.0
Expenditures .................................................. 416.4 409.4 409.0 398.4 407.4
Consumption expenditures (B) .................... 324.9 319.1 318.3 308.8 313.9
2)
Non-consumption expenditures (C) .......... 91.5 90.3 90.7 89.6 93.5
Surplus ((A-C)-B) .......................................... 117.8 108.9 111.7 111.7 111.1
Net increase in savings and insurance ........... 81.2 69.5 76.8 76.8 77.8
Average propensity to consume (%) 3) ........... 73.4 74.6 74.0 73.4 73.9
Ratio of net increase in savings and insurance (%) 4) .. 18.3 16.2 17.9 18.3 18.3
Engel's coefficient (%) ................................... 21.9 22.0 21.9 22.2 22.1
Annual rate of increase (%) (real terms)
Disposable income ....................................... -1.5 -1.9 1.3 -1.9 1.1
Consumption expenditures .......................... -1.1 -0.3 0.6 -2.7 1.6
1) Two-or-more-person households. 2) Direct taxes, social insurance contributions, etc.
3) Ratio of consumption expenditures to disposable income. 4) Ratio of net savings and
insurance to disposable income.
Source: Statistics Bureau, MIC.

Disposable income, calculated as income minus non-consumption

expenditures such as taxes and social insurance contributions, was 425,005
yen. Of this disposable income, 313,874 yen was used for living expenses
(consumption expenditures), such as food and housing expenses, while the
remainder (surplus), totaling 111,131 yen, was applied to savings, life
insurance premiums and repaying debt such as housing loans.
A look at consumption expenditures by category showed that some
categories, including spending on "transportation and communication" and
"medical care," increased from the previous year in real terms, while
"housing," "education" and other spending decreased in real terms.

144
 FAMILY BUDGETS AND PRICES

Figure 13.2
Balance of Income and Expenditures
(Monthly average, workers' households 1)) (2012)

Others
Other household
members 1.8 Household average
Persons per household: 3.42
Spouse of 7.5 Earners per household: 1.68
household head
Age of head: 47.8 years old
11.5

Income Household head

518,506 yen

79.2％
Carry-over from previous
month 62,001 yen
Saving deposits cashed &
Disposable income installment purchases, etc.

Receipts 425,005 yen 400,143 yen

980,650 yen

Non-consumption
expenditures 93,501 yen Surplus 111,131 yen

Disbursements
313,874 yen 515,798 yen
980,650 yen

▲ ▲ ▲
Consumption expenditures Savings & debts Carry-over to next
payments, etc. month 57,478 yen
Consumption
expenditures
313,874 yen
Others Food
21.3 22.1%

Culture & recreation 9.7 Housing 6.5

Fuel, light & water charges 7.2

16.0
Education 5.7 Furniture & household utensils 3.3
Clothing & footwear 4.3
Transportation
Medical care 3.7
& communication

1) Two-or-more-person households.
Source: Statistics Bureau, MIC.

145
 FAMILY BUDGETS AND PRICES

Figure 13.3
Annual Change in Household Income and Expenditures
(Workers' households 1))
% Income % Consumption expenditures
4 4
3 CPI CPI
3
2 2
Real terms
1 1
0 0
-1 -1
-2 Real
terms -2
-3 Nominal -3
terms Nominal terms
-4 -4
2008 09 10 11 12 2008 09 10 11 12

1) Two-or-more-person households.
Source: Statistics Bureau, MIC.

Family budgets differ among households according to their stages in life.

Observed by age group of the household head, the 2012 average monthly
disposable income of workers' households was the highest in households
in the 50s group (480,037 yen), followed by those in the 40s group
(450,136 yen) and the 30s group (398,669 yen).
The 2012 average propensity to consume (the ratio of consumption
expenditures to disposable income) was the lowest in households in the
30s group (68.2 percent). The figure was 70.8 percent in those in the 40s
group, 74.2 percent in the 50s group, and 90.3 percent in the 60s group.
The percentage tends to be higher as the age goes up, except for the
under-30 group (74.7 percent) and the 70-and-over group (76.8 percent).
Meanwhile, a net increase in financial assets (an amount added to savings)
was the highest in households in the 50s group, followed by those in the
40s group.

146
 FAMILY BUDGETS AND PRICES

Figure 13.4
Average Monthly Family Income and Expenditures by Age Group
of Household Head (Workers' households 1)) (2012)
Thousand yen
600
Consumption
500 Disposable income expenditures
Net increase
in financial
400
assets

300

200

100

0
-29 30-39 40-49 50-59 60-69 70 and over

1) Two-or-more-person households.
Source: Statistics Bureau, MIC.

(b) Non-working Elderly Households

According to an analysis of the average monthly income and expenditures
of non-working elderly households (two-or-more-person households where
the age of the household head is 60 and over), the average income was
215,555 yen in 2012. Social security benefits amounted to 183,769 yen,
thus accounting for 85.3 percent of income.
Disposable income averaged 185,113 yen, while consumption
expenditures averaged 242,138 yen. The average propensity to consume in
non-working elderly households was 130.8 percent, which means
consumption expenditures exceeded disposable income. The deficit of
disposable income to consumption expenditures (57,025 yen) increased
from that of the previous year (52,819 yen). This deficit was financed by
the proceeds from private and/or corporate pension insurance, and by
withdrawing financial assets.

147
 FAMILY BUDGETS AND PRICES

Figure 13.5
Average Monthly Income and Expenditures
(Non-working elderly households 1) ) (2012)
%
0%
0 20
20% 40%
40 60%
60 80%
80 100%
100

Income 215,555 yen

Other Deficit
Income Social security benefits
income 57,025 yen

Disposable income 185,113 yen

Consumption expenditures 242,138 yen

Expenditures Food Others

▲ ▲
Housing Social expenses
Non-consumption
expenditures Culture & recreation
Fuel, light & water charges
30,443 yen Transportation & communication
Medical care
1) Two-or-more-person households.
Source: Statistics Bureau, MIC.

(B) One-person Households

The average monthly consumption expenditures of one-person households
in 2012 was 156,450 yen, down 2.8 percent in both nominal and real terms
from the previous year. Compared on an age-group basis to the previous
year in real terms, the average monthly consumption expenditures were
down 6.7 percent for the under 35-year-old group and down 6.2 percent in
the 35-59 age group, while there was a 1.4 percent increase in the
60-and-over. Spending on categories such as "fuel, light and water
charges," "furniture and household utensils" and "medical care" tended to
be larger in older age groups. Meanwhile, older age groups were found to
spend increasingly less on categories such as "housing."

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 FAMILY BUDGETS AND PRICES

Table 13.2
Average Monthly Consumption Expenditures of One-Person Households
by Age Group
(Yen)
Annual
1)
2008 2009 2010 2011 2012 growth
(%)
Average .................. 171,602 162,731 162,009 160,891 156,450 -2.8
Under 35 years ........ 192,515 171,233 156,582 169,813 158,474 -6.7
35-59 ...................... 188,158 183,380 186,396 180,173 168,929 -6.2
60 and over ............. 151,670 146,861 150,669 147,077 149,089 1.4
1) Real terms.
Source: Statistics Bureau, MIC.

(2) Savings and Debts

Two-or-more-person households in 2012 showed that the average amount
of savings per workers' household was 12.33 million yen, resulting in its
ratio to average yearly income (6.91 million yen) amounting to 178.4
percent. On the other hand, the average amount of debts per household was
6.95 million yen, which was 100.6 percent relative to yearly income. The
portion for "housing and land" accounted for 6.48 million yen of the debts
(6.95 million yen). A total of 40.8 percent of workers' households held
"debts for housing and land."

Table 13.3
Average Amount of Savings and Debts (Workers' households 1))
(Thousand yen)
Ratio of Ratio of Ratio of
Yearly savings to debts households
Year Savings Debts Housing and to yearly
income yearly holding
income (%) land income (%) debts (%)
2008 7,170 12,500 174.3 6,520 6,030 90.9 52.4
2009 7,090 12,030 169.7 6,430 5,960 90.7 52.8
2010 6,970 12,440 178.5 6,790 6,290 97.4 52.8
2011 6,890 12,330 179.0 6,470 6,010 93.9 51.9
2012 6,910 12,330 178.4 6,950 6,480 100.6 53.5
1) Two-or-more-person households.
Source: Statistics Bureau, MIC.

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 FAMILY BUDGETS AND PRICES

By age group of the head of the household, the average amount of savings
was found to be the highest in the 70-and-over group, while debts were the
highest in the 40s group.

Table 13.4
Amount of Savings and Debts by Age Group of Household Head
(Workers' households 1)) (2012)
(Million yen)
70 and
Item Average -29 30-39 40-49 50-59 60-69
over
Yearly income ................................. 6.91 4.44 5.69 7.17 8.36 6.24 6.20
Savings ............................................ 12.33 2.90 5.69 9.88 16.09 21.68 22.32
Financial institutions .................... 11.77 2.83 5.37 9.24 15.22 21.32 22.23
Demand deposits ........................ 2.79 1.34 2.10 2.39 3.13 4.14 5.24
Time deposits ............................. 4.79 0.94 1.84 3.33 6.34 9.82 9.27
Life insurance ............................. 3.13 0.49 1.09 2.81 4.58 4.78 4.00
Securities .................................... 1.05 0.06 0.34 0.69 1.17 2.58 3.72
Non-financial institutions ............ 0.56 0.07 0.32 0.65 0.87 0.36 0.09
Debts ............................................... 6.95 3.02 9.29 10.02 5.16 1.98 1.69
Housing and land ......................... 6.48 2.70 8.87 9.47 4.60 1.70 1.05
Other than housing and land ........ 0.29 0.12 0.24 0.37 0.35 0.18 0.01
Monthly and yearly installments .. 0.18 0.20 0.18 0.18 0.20 0.10 0.62
1) Two-or-more-person households.
Source: Statistics Bureau, MIC.

By yearly income group, an almost positive correlation was observed

between yearly income and savings/debts: the higher the yearly income,
the higher the amount of savings as well as debts.

2. Prices
A general overview of Japan's price movements in recent years showed
that corporate goods prices were going up since 2004, reflecting the
recovering economy and rising prices in raw material imports. Meanwhile,
consumer prices, which had been deflationary for the past decade, changed
their pattern in 2006 to later take on an upward trend in the start of 2008.
However, since September 2008, corporate goods prices and consumer
prices have both declined. This was due to falling prices of petroleum
products, etc. which resulted from a global economic slowdown triggered

150
 FAMILY BUDGETS AND PRICES

by the failure of an American securities investment bank in September

2008. After the beginning of 2013, domestic corporate goods prices have
risen at a moderate pace. Consumer prices have declined moderately. From
a long-term viewpoint, price movements are different between consumer
prices and domestic corporate goods prices.

(1) Consumer Price Index (CPI)

The overall index of consumer prices (with base year 2010 = 100) was
99.7 in 2012, the same level as the previous year.

Table 13.5
CPI for Major Categories of Goods and Services
(2010=100)
Item Weight 2000 2005 2009 2011 2012
Overall ..................................................... 10000 102.7 100.4 100.7 99.7 99.7
Overall, excluding imputed rent ............ 8442 103.1 100.3 100.8 99.7 99.7
Food ................................................... 2525 98.4 96.8 100.3 99.6 99.7
Housing .............................................. 2122 100.9 100.6 100.4 99.8 99.5
Fuel, light and water charges ............. 704 94.6 94.4 100.2 103.3 107.3
Furniture and household utensils ....... 345 131.1 111.6 104.8 94.4 91.7
Clothing and footwear ....................... 405 106.3 100.2 101.2 99.7 99.7
Medical care ....................................... 428 98.7 101.2 100.5 99.3 98.5
Transportation and communication ... 1421 103.0 101.6 99.0 101.2 101.5
Education ........................................... 334 103.2 107.4 110.6 97.9 98.2
Culture and recreation ........................ 1145 118.0 107.9 101.7 96.0 94.5
Miscellaneous .................................... 569 95.4 97.1 98.7 103.8 103.5
Goods ..................................................... 4931 104.5 100.1 100.6 99.3 99.3
Services .................................................. 5069 100.8 100.7 100.9 100.1 100.0
Source: Statistics Bureau, MIC.

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 FAMILY BUDGETS AND PRICES

Figure 13.6
Price Trends (Percent change from previous year)
%
10
8
6
4 CPI
2
0
-2
-4
-6 Domestic corporate goods
-8
price index
-10
1997 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Source: Statistics Bureau, MIC; Bank of Japan.

Figure 13.7
CPI by Country (2005=100)
%
130 14
Japan Canada Germany
120 12

110 CPI (left scale) 10

▼
100 8

90 6

80 Annual change 4
(right scale)
70 ▼ 2

60 0

50 -2
2006 08 10 12 2006 08 10 12 2006 08 10 12
130 14
Italy U.K. U.S.A.
120 12

110 10

100 8

90 6

80 4

70 2

60 0

50 -2
2006 08 10 12 2006 08 10 12 2006 08 10 12

Source: Statistics Bureau, MIC; International Monetary Fund.

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 FAMILY BUDGETS AND PRICES

According to the regional difference index of prices, which compares the

difference in consumer price levels by prefecture, Tokyo-to had the highest
score in 2007, with a figure of 108.5 against the national average set at 100.
Following Tokyo-to were Kanagawa-ken (104.8) and Kyoto-fu (102.8). On
the other hand, Okinawa-ken registered the lowest score at 91.9.
Comparing Tokyo-to and Okinawa-ken, price index of Tokyo-to was 18.1
percent higher than that of Okinawa-ken.

Figure 13.8
Regional Difference Index of Prices by Selected Prefectures (2007)
(Japan = 100)
90 95 100 105 110

Tokyo-to
Tokyo
Kanagawa-ken
Kanagawa
Kyoto
Kyoto-fu
Osaka-fu
Osaka
Hyogo-ken
Hyogo
Hiroshima
Hiroshima-ken
Hokkaido
Fukuoka
Fukuoka-ken
Nagano
Nagano-ken
Ibaraki-ken
Ibaraki
Akita
Akita-ken
Miyazaki
Miyazaki-ken
Okinawa
Okinawa-ken

Source: Statistics Bureau, MIC.

(2) Corporate Goods and Services Price Indices

The corporate goods price index measures the price developments of
goods traded between companies. It is comprised of the domestic
corporate goods price index (index of transaction prices between
companies for domestic products targeted at the domestic market), the
export price index, and the import price index.
In 2012, the domestic corporate goods price index (2010 as the base year =
100) was 100.6, down 0.9 percent from the previous year.

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 FAMILY BUDGETS AND PRICES

In 2012, the export price index decreased 101.6 on a contract currency

basis (down 1.5 percent from the previous year); measured in yen, the
index decreased to 95.8 (down 2.0 percent). Meanwhile, the import price
index fell to 115.1 on a contract currency basis (down 0.1 percent from the
previous year) and to 107.3 on a yen basis (down 0.2 percent), thus turning
down in both contractual currency and yen terms.
The corporate services price index measures price movements of services
traded between companies. In 2012, the corporate services price index
(2005 as the base year = 100) was 95.8, down 0.4 percent from the
previous year.

Table 13.6
Corporate Goods and Services Price Indices
Item Weight 2000 2005 2010 2011 2012
Corporate goods price index (2010=100)
Domestic corporate goods price index .......... 1000.0 99.5 97.2 100.0 101.5 100.6
Manufactured products ............................... 902.5 99.6 97.4 100.0 101.3 99.7
Export price index (yen basis) ...................... 1000.0 117.7 115.7 100.0 97.8 95.8
Import price index (yen basis) ...................... 1000.0 79.7 94.1 100.0 107.5 107.3
Corporate services price index (2005=100)
All items ........................................................ 1000.0 107.4 100.0 96.9 96.2 95.8
Transportation ............................................. 210.3 96.7 100.0 99.7 99.6 99.3
Information and communications ............... 216.5 112.3 100.0 95.0 94.0 93.3
Advertising services .................................... 68.5 102.3 100.0 89.7 89.5 89.5
Leasing and rental ....................................... 84.6 146.6 100.0 84.3 82.5 81.3
Source: Bank of Japan.

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 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 14
Environment and Life

© KONDO Hiroki

Hitachikaihin National Government Park in Hitachinaka-shi, Ibaraki Prefecture. In

order to lighten environmental impact, this park promotes the reuse of all plant waste
generated in the park as fertilizer, wood chips, etc.
 ENVIRONMENT AND LIFE

1. Environmental Issues
The list of environmental issues is wide-ranging, from waste management
to global warming. Japan is, while pursuing regional development at home,
taking the initiative in efforts to prevent global warming and conserve the
natural environment to help achieve sustainable growth of the entire world.
In fiscal 2011, Japan's total emission of greenhouse gases, which are a
major cause of global warming, amounted to 1.31 billion tons (calculated
after their conversion into carbon dioxide), representing an increase of 4.0
percent from the previous fiscal year. Carbon dioxide accounted for 95
percent of these greenhouse gases, with an emission volume of 1.24 billion
tons. A breakdown of carbon dioxide emissions by sector revealed that
emissions from the industrial sector accounted for 34 percent of the total,
followed in order by emissions from the commercial sector (office
buildings, etc.), the transport sector, the residential sector, and the energy
sector (electric power plants, etc.).

Table 14.1
Breakdown of Carbon Dioxide Emissions in Japan 1)
(Million tons)
Item FY1990 FY1995 FY2000 FY2005 FY2010 FY2011
Total ........................................ 1,141 1,224 1,251 1,282 1,191 1,241
Industrial sector .................... 482 471 467 459 421 419
Transport sector ................... 217 258 265 254 232 230
Commercial sector ............... 164 185 206 236 217 248
Residential sector ................. 127 148 158 174 172 189
Energy sector ....................... 68 73 71 79 81 87
Industrial processes .............. 60 61 54 50 41 41
Waste (incineration, etc.) ..... 22 27 31 30 27 26
1) Volume of carbon dioxide after reallocation to the end-use sector.
Source: Ministry of the Environment.

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 ENVIRONMENT AND LIFE

Figure 14.1
Sources of Carbon Dioxide Emissions in Japan 1) (FY2011)

Others

Energy sector
5.4
7.0 Industrial sector

33.8 %
Residential sector 15.2
1.24
billion tons of
CO2

18.6
20.0
Transport sector

Commercial sector

1) Volume of carbon dioxide after reallocation to the end-use sector.

Source: Ministry of the Environment.

The state of waste management in Japan had remained grave due to the
shrinking remaining capacity of final disposal sites and increased illegal
dumping. This led to the Basic Act on Establishing a Sound
Material-Cycle Society (brought into force in January 2001), which
defines basic principles for the creation of a sound material-cycle society.
This law has established a legal framework to address issues such as waste
disposal and automobile and electrical appliance recycling. Another
ongoing effort is the promotion of the "3Rs" (reduce, reuse and recycle) in
waste management, including appropriate management of hazardous
materials and R&D on waste recycling technology.

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 ENVIRONMENT AND LIFE

Of various types of waste generated as a result of business activities, 20 of

them, including sludge, waste oil, and soot and dusts, are designated as
"industrial waste." The fiscal 2010 nationwide industrial waste generation
totaled 385.99 million tons. Sludge, animal waste and debris, which
account for approximately 80 percent of the total industrial waste, are now
increasingly recycled into construction materials, organic fertilizers, and
other materials. Thanks to this development, the volume of final disposal
(to be put into landfills) fell from 89.73 million tons in fiscal 1990 to 14.26
million tons in fiscal 2010.
Meanwhile, a total of 45.36 million tons of "nonindustrial waste"
(household waste and also shop, office and restaurant waste) was
generated in fiscal 2010. This translates to 976 grams per person per day.
In terms of nonindustrial waste disposal in fiscal 2010, the total volume
processed was 42.79 million tons. The total volume of recycled waste was
9.45 million tons, with the recycling rate at 20.8 percent.

Table 14.2
Waste Generation and Disposal (Industrial and nonindustrial waste)
(Thousand tons)
Item FY1990 FY1995 FY2000 FY2005 FY2010
Industrial waste
Total volume of waste generation .............. 394,736 393,812 406,037 421,677 385,988
Recycling ................................................ 150,568 146,620 184,237 218,888 204,733
Treatment for waste reduction ................ 154,443 177,941 176,933 178,560 167,000
Final disposal .......................................... 89,725 69,257 44,868 24,229 14,255

Nonindustrial waste 1)
Total volume of waste generation .............. 50,257 52,224 54,834 52,720 45,359
Municipally scheduled and collected ...... 42,495 44,100 46,695 44,633 38,827
Directly brought to
waste treatment facilities .................... 6,776 5,806 5,373 5,090 3,803
Recyclable waste
collected by community ...................... 986 2,318 2,765 2,996 2,729
Waste generated
daily per person (in grams) ................... 1,115 1,138 1,185 1,131 976

Total volume of processed waste ............... 49,282 49,899 52,090 49,754 42,791
Direct incineration .................................. 36,192 38,048 40,304 38,486 33,799
Intermediate treatment for recycling, etc. ... 6,479 7,283 6,161
3,300 6,131
Direct recycling ....................................... 2,224 2,541 2,170
Direct final disposal ................................ 9,790 5,721 3,084 1,444 662
1) Figures for FY2010 exclude those for Minamisanriku-cho (Miyagi Prefecture) for the
Great East Japan Earthquake.
Source: Ministry of the Environment.

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 ENVIRONMENT AND LIFE

Figure 14.2
Recycling of Nonindustrial Waste 1)
Million tons %
15 25
Collection by community
(left scale)
Recycling by municipality
12 20
Recycling rate (%) (right scale)

9 15

6 10

3 5

0 0
FY1990 92 94 96 98 00 02 04 06 08 10

Total volume of recycled waste

Recycling rate ＝ × 100
(%) Total volume of + Volume of collection
processed waste by community
Total volume of ＝ Volume of recycling + Volume of collection
recycled waste by municipality by community
1) Figures for FY2010 exclude those for Minamisanriku-cho (Miyagi Prefecture) for the Great East
Japan Earthquake.
Source: Ministry of the Environment.

2. Housing
According to the Housing and Land Survey conducted in October 2008,
the total number of dwellings (in the case of apartment buildings, counting
the number of individual units) in Japan was 57.59 million, up by 3.70
million (6.9 percent) from 2003. The number of households was 49.97
million, representing the excess in number of dwellings over households
by 7.61 million.
In 2008, the number of occupied dwellings (where people usually live)
amounted to 49.60 million, accounting for 86.1 percent of the total number
of dwellings. Of these, the number of dwellings used exclusively for living
totaled 48.28 million, accounting for 97.3 percent of the occupied
dwellings.

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 ENVIRONMENT AND LIFE

A breakdown of occupied dwellings by class of ownership showed that

owned houses totaled 30.32 million, accounting for 61.1 percent of the
total, which represented a decrease of 0.1 percentage points from the
figure of 61.2 percent in 2003. Rented houses, on the other hand,
numbered 17.77 million, accounting for 35.8 percent of the total.

Table 14.3
Housing Conditions
(Thousands)
Ownership
Total Dwellings
Total Occupied Floor space
Year number of exclusively
households dwellings Owned Rented per dwelling
dwellings for living 2
(m )
1983 35,197 38,607 34,705 21,650 12,951 31,935 81.6
1988 37,812 42,007 37,413 22,948 14,015 34,701 85.0
1993 41,159 45,879 40,773 24,376 15,691 38,457 88.4
1998 44,360 50,246 43,922 26,468 16,730 41,744 89.6
2003 47,255 53,891 46,863 28,666 17,166 45,258 92.5
2008 49,973 57,586 49,598 30,316 17,770 48,281 92.4
Source: Statistics Bureau, MIC.

Table 14.4
Occupied Dwellings by Type of Building
(Thousands)
Detached Tenement
Year Total Apartments Others
houses houses
1983 34,705 22,306 2,882 9,329 187
1988 37,413 23,311 2,490 11,409 203
1993 40,773 24,141 2,163 14,267 202
1998 43,922 25,269 1,828 16,601 224
2003 46,863 26,491 1,483 18,733 156
2008 49,598 27,450 1,330 20,684 134
Source: Statistics Bureau, MIC.

Occupied dwellings by building type showed that 27.45 million or 55.3

percent were detached houses, and 20.68 million or 41.7 percent were
apartments. The proportion of apartments has consistently increased in
recent years.

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 ENVIRONMENT AND LIFE

In terms of construction materials, 25.42 million or 92.6 percent of the

detached houses were wood-frame houses (including fire-resistant ones).
On the other hand, 15.04 million or 72.7 percent of the component
apartments were steel-framed concrete structures.
A study of housing with accessibility equipment for the elderly and
physically challenged persons showed that the number of housing units
"with equipment for the elderly, etc." was 24.15 million, or 48.7 percent of
all housing, up 8.9 percentage points from 18.66 million (39.8 percent) in
2003. Housing "equipped with handrails" accounted for 37.3 percent of all
housing, and housing with a "step-free interior" made up 20.0 percent.
Figures increased from 2003 in all categories of equipment surveyed.

Figure 14.3
Ratio of Housing with Barrier-Free Features

%
0 10 20 30 40 50 60

Equipment for the

elderly, etc.

Handrail-equipped

Bath tub,
easy-to-step-in

Wheelchair-accessible 2003
hallway 2008

Step-free interior

Street-to-door
wheelchair access

Source: Statistics Bureau, MIC.

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 ENVIRONMENT AND LIFE

3. Traffic Accidents
In 1970, the annual number of fatalities from traffic accidents hit a record
high of 16,765, leading to the enactment of the Traffic Safety Measures
Basic Law in the same year. Based on this law, the government has since
promoted traffic safety measures in a comprehensive and systematic
manner. As a result, the number of traffic accident fatalities declined to
4,612 in 2011, and they recorded their eleventh consecutive year of
decrease. This represented less than one-third of that of 1970.
In 2011, traffic deaths per 100,000 population were 3.6 persons, while the
number of persons killed per 10,000 motor vehicles was 0.6 persons.

Table 14.5
Traffic Accidents and Casualties
Traffic Traffic
Year Injuries per 10,000 per 100,000
accidents deaths 1) motor vehicles population
1970 718,080 981,096 16,765 9.0 16.2
1980 476,677 598,719 8,760 2.2 7.5
1990 643,097 790,295 11,227 1.9 9.1
2000 931,934 1,155,697 9,066 1.2 7.1
2005 933,828 1,156,633 6,871 0.9 5.4
2010 725,773 896,208 4,863 0.6 3.8
2011 691,937 854,493 4,612 0.6 3.6
1) Death within 24 hours of the accident.
Source: National Police Agency.

4. Crime
In 2012, the reported number of penal code offenses (excluding cases
related to traffic accidents) was 1.38 million, a decrease of 98,639 (6.7
percent) compared to the previous year. The proportion of thefts was the
highest, accounting for approximately 75 percent, or 1.04 million cases
(down 8.2 percent from the previous year).
The number of persons arrested for penal code offenses was 287,021 in
2012, a decrease of 18,610 (6.1 percent) compared to the previous year,
marking an eight-consecutive-year decline.

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 ENVIRONMENT AND LIFE

The ratio of arrests to reported number of offenses marked a post-World

War II low at 19.8 percent in 2001. Since 2002, however, it has shown
signs of recovery, accounting for 31.7 percent in 2012.

Table 14.6
Trends in Crime (Penal code offenses) 1)
2) Crime rate
Reported Resultant Persons Arrest rate
Year per 100,000
offenses arrests arrested
(%) population
1980 1,357,461 811,189 392,113 59.8 1,159.6
1985 1,607,697 1,032,879 432,250 64.2 1,328.1
1990 1,636,628 692,593 293,264 42.3 1,324.0
1995 1,782,944 753,174 293,252 42.2 1,419.9
2000 2,443,470 576,771 309,649 23.6 1,925.5
2005 2,269,293 649,503 386,955 28.6 1,775.7
2010 1,585,856 497,356 322,620 31.4 1,238.0
2011 1,480,760 462,535 305,631 31.2 1,158.7
2012 1,382,121 437,612 287,021 31.7 1,084.0
1) Excluding traffic offenses. 2) The ratio of arrests to reported number of offenses.
Source: National Police Agency.

Various kinds of computers and computer networks are currently playing

an essential role as a social foundation. In line with this, crimes utilizing
computer networks are becoming increasingly diversified. The number of
arrests for cybercrime in 2012, involving the abuse of computer
technology and telecommunications technology, was 7,334, up 27.7
percent from the previous year. This represented about an eightfold
increase from the 913 cases registered in 2000.
The police organization consists of the National Public Safety Commission
and the National Police Agency, both of which are state organizations, as
well as the Prefectural Public Safety Commission and prefectural police,
both of which are organizations under the authority of individual
prefectures. As of April 1, 2012, the prefectural police operated police
headquarters, police schools, 1,174 police stations, 6,240 police boxes
(Koban) and 6,714 police substations in 47 prefectures.
Local police officers at their respective police boxes/substations are
engaged in standing guard over their communities, patrolling, and dealing
with criminal cases and accidents to prevent crimes and catch criminals.

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 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 15
Social Security, Health Care, and Public Hygiene

© KIMURA Shinkoh

A gathering to celebrate a 70th birthday at a coffee shop in Koto-ku, Tokyo. Social

security benefit expenditures in fiscal 2010 totaled 103.5 trillion yen, an increase of
3.6 trillion yen (3.6 percent) from the previous fiscal year.
 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

1. Social Security
In Japan, the birth rate has been falling, while the number of elderly people
has been growing. As these trends continue, Japanese society faces the
prospect of accelerating population decline. Meanwhile, its social security
system is required to address various changes in the socioeconomic
environment, including the expanding the fiscal deficit.
In April 2000, a long-term care insurance system was launched. This is due
to the fact that the issue of elderly care, including the excessive burden of
care resting on family members alone, had loomed as a social problem as
the aging of society progressed. At the onset of the system (in 2000), the
number of care service users was approximately 1.5 million. It
subsequently jumped, coinciding with rapid rises in the aggregate
long-term care insurance cost (long-term care insurance finances).
Therefore, an all-round revision was made to the system in 2005, including
putting greater emphasis on nursing care prevention. Moreover, a 2011
revision emphasizes building a comprehensive local care system (an
integrated system to provide medical treatment, caregiving, prevention,
and livelihood support to people in the places where they live). As of April
2012, the number of long-term care service users amounted to
approximately 4.5 million.
In fiscal 2010, social security benefit expenditures totaled 103.5 trillion
yen (up 3.6 percent from the previous fiscal year), a figure which
amounted to 808,100 yen per person. The ratio of Japan's social security
benefit expenditures to national income registered 29.6 percent. Total
expenditure on social security benefits is increasing annually, thus making
a review of benefits and burdens an urgent issue in order to ensure that the
social security system is sustainable over the long term. Benefits for the
aged accounted for approximately 70 percent of total social security
benefit expenditures.

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 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

Table 15.1
Trends in Social Security Benefit Expenditures by Institutional Scheme
(Billion yen)
Item FY2000 FY2005 FY2008 FY2009 FY2010
Total ............................................................ 78,139 87,777 94,104 99,861 103,488
Medical insurance ................................... 14,573 16,141 17,741 18,196 18,794
1)
Health and medical services for the aged .... 10,447 10,754 10,444 11,007 11,700
Long-term care insurance ....................... 3,262 5,815 6,587 7,051 7,434
Pension benefits ...................................... 39,173 44,669 48,151 50,406 51,191
Employment insurance 2) ........................ 2,665 1,435 1,401 2,697 2,088
Workers' accident compensation insurance .... 1,019 953 946 922 907
3)
Family allowance ................................. 712 1,158 1,559 1,610 3,042
Public assistance ..................................... 1,939 2,594 2,701 3,007 3,330
Social welfare ......................................... 2,186 2,505 3,048 3,311 3,353
Public health ........................................... 555 548 547 762 831
Gratuities for retired public employees .. 1,420 1,059 841 772 702
Aid for war victims ................................. 188 146 138 120 116
1) Including public health measures (e.g., medical check-ups and counseling, etc.).
2) Including unemployment benefits for Seamen's insurance. 3) Including income support
for single parent families and families with challenged children.
Source: Ministry of Health, Labour and Welfare.

Figure 15.1
13.1
Trends in Social Security
Security Benefit Expenditures by Sector
Expenditures
Trillion yen %
120 30
Ratio of social security benefit
Others expenditures to national income
100 (right scale) 25
Medical care (left scale)

80 Pensions 20

60 15

40 10

20 5

0 0
FY1990 92 94 96 98 00 02 04 06 08 10
Source: Ministry of Health, Labour and Welfare.

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 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

In fiscal 2010, pensions accounted for half (50.7 percent) of total social
security benefit expenditures, while medical care accounted for 31.2
percent, and social welfare and others for 18.1 percent. Social security
benefit expenditures are forecasted to continue growing, and are projected
to reach 149 trillion yen in fiscal 2025.
In accordance with the rise in social security benefit expenditures, the
amount of funds necessary to cover these expenditures has also increased,
reaching 112.2 trillion yen in fiscal 2010. This was financed by 57.8
trillion yen from social insurance contributions, 40.1 trillion yen from
taxes and 14.2 trillion yen from other sources.
The national contribution ratio (the combined ratios of taxes and social
security costs to national income) was 40.0 percent in fiscal 2011 (taxation
burden: 22.9 percent; social security premiums: 17.1 percent), up 1.5
percentage points from 38.5 percent in fiscal 2010. The national
contribution ratio in 2010 was 30.9 percent in the U.S.A., 47.3 percent in
the U.K., and 58.9 percent in Sweden. While the ratio in Japan was higher
than that of the U.S.A., it was lower than European countries.

Figure 15.2
National Contribution Ratio by Country
%
90
National contribution Ratio of social security
80 ratio premiums burden

Ratio of taxation
70
burden
58.9 60.0
60
50.5
47.3 12.0
50
24.8
40.0
40 10.8
21.9
30.9
30 17.1
8.4
46.9
20 36.4 35.2
28.6
10 22.9 22.6

0
Japan U.S.A. U.K. Germany Sweden France
(FY2011) (2010) (2010) (2010) (2010) (2010)
Source: Ministry of Finance.

167
 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

The social welfare institutions shown below provide users with various
services either for free or partially free.

Table 15.2
Social Welfare Institutions (as of October 1, 2011)
Type of institutions Institutions Users Workers 1)
Total ......................................................................... 50,129 2,684,538 769,777
2)
Institutions under the Public Assistance Act ........ 294 19,342 6,232
Welfare for the elderly ............................................. 4,827 136,029 40,446
Nursing homes ..................................................... 893 56,381 15,847
Welfare centers .................................................... 1,933 - 6,220
Support for the physically challenged, etc. .............. 4,263 105,317 71,572
Rehabilitation for the physically challenged ............ 286 10,743 5,857
Rehabilitation for the mentally challenged .............. 1,127 50,827 20,975
Rehabilitation for the mentally ill ............................ 366 6,288 2,134
Support for social participation of the physically challenged ... 318 ... 2,758
Protection for women ............................................... 45 411 364
Child welfare 3) ......................................................... 31,599 2,157,692 523,339
Day nurseries ........................................................ 21,751 2,084,136 447,013
Maternal and child welfare ...................................... 60 ... 251
Others 4) .................................................................... 6,944 197,889 95,850
Pay nursing homes for the elderly ........................ 4,640 179,505 90,439
1) Full time equivalent. 2) "Users" and "workers" exclude medical care aid institutions.
3) "Users" excludes homes of living assistance for mothers and children, and maternity
homes; "workers" excludes maternity homes, and children's playgrounds. 4) "Users"
excludes those of homes for the visually impaired, and facilities for medical treatment that is
free of charge or low-cost; "workers" excludes those of facilities for medical treatment that is
free of charge or low-cost.
Source: Ministry of Health, Labour and Welfare.

2. Health Care and Public Hygiene

Japan has a universal health insurance regime to ensure that anyone can
receive necessary medical treatment. Under this regime, every citizen
enters a publicly regulated medical insurance system, such as employees'
health insurance or national health insurance.
This medical care system has contributed to Japan's achieving the highest
life expectancy in the world, as well as a high standard of healthcare along
with improvements in the living environment and better nutrition.
Currently, reform of the whole system is being undertaken in order to
sustain this medical insurance system in the future.

168
 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

Life expectancy at birth was 86.4 years for women and 79.9 years for men
in 2012. Japan's life expectancy remains the highest level in the world.
Japan's infant mortality rate was 2.2 per 1,000 births in 2012.

Figure 15.3
Figure 15.3
Death by Leading
Death Rates Cause
by Major Cause
Per 100,000 population
300

250
Malignant neoplasms
▼

200
Heart diseases
▼ Cerebrovascular diseases
150

100
Pneumonia Suicide
50 ▼ Accidents
▼

0
1982 87 92 97 02 07 12
Source: Ministry of Health, Labour and Welfare.

The death rate was 997.4 per 100,000 population in 2012. The leading
cause of death was malignant neoplasms (286.4 per 100,000 population),
followed by lifestyle diseases such as heart diseases (157.7; excluding
hypertensive diseases), in which people's daily diet and behavior are
significant factors therefore, and pneumonia (98.3). Malignant neoplasms
became the leading cause of death in 1981. The death rate by malignant
neoplasms has continued to increase since, reaching 28.7 percent of all
deaths in 2012.
Due to the increasingly complex social environment created by a
highly-technological, competition-oriented society, the stress levels felt by
all age groups are rising. The number of suicides in Japan was 26,400 in
2012, and had remained at the same level of around 30,000 a year since
1998. In 2012, suicide became the leading cause of deaths for people aged
between 15 and 39.

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 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

In the past, humanity faced the threat of epidemic diseases such as

smallpox and bubonic plague. Today, infectious diseases that especially
require countermeasures are new strains of influenza. Japan has taken
measures to combat such new strains in Japan and abroad, including R&D
on vaccines against them, through steps such as establishing the Influenza
Virus Research Center (a WHO-designated center) inside the National
Institute of Infectious Diseases.
In terms of healthcare provision, Japan had 292,338 physicians engaged in
medical care, or 228.3 physicians per 100,000 population, in 2010. While
the number of physicians providing healthcare is increasing nationwide,
their uneven distribution has become a problem due to the lack of
physicians specializing in certain areas of medicine and the lack of
physicians operating in regional parts of the country.

Table 15.3
Number of Medical Personnel at Work
Personnel 2002 2004 2006 2008 2010
Number
Physicians ....................................... 260,500 267,943 275,127 283,915 292,338
Dentists ........................................... 91,783 94,022 95,944 98,063 100,161
Pharmacists ..................................... 212,720 223,564 234,429 249,251 258,713
Nurses and Assistant nurses ........... 1,097,326 1,146,181 1,194,121 1,252,224 1,320,871
Rates per 100,000 population
Physicians ....................................... 204.3 209.7 215.1 221.7 228.3
Dentists ........................................... 72.0 73.6 75.0 76.6 78.2
Pharmacists ..................................... 166.9 175.0 183.3 194.6 202.0
Nurses and Assistant nurses ........... 860.7 896.9 933.6 977.7 1,031.5
Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare.

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 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

The number of hospital beds in Japan (excluding those in medical clinics

and dental clinics) totaled 1,238.7 per 100,000 population in 2011.

Table 15.4
Number of Medical Care Institutions and Beds
Type of Institution 2002 2005 2008 2010 2011
Institutions
Number
Total ............................................. 169,079 173,200 175,656 176,878 176,308
Hospitals ................................ 9,187 9,026 8,794 8,670 8,605
Medical clinics ....................... 94,819 97,442 99,083 99,824 99,547
Dental clinics ......................... 65,073 66,732 67,779 68,384 68,156
Rates per 100,000 population
Total ......................................... 132.7 135.6 137.6 138.1 138.0
Hospitals ................................ 7.2 7.1 6.9 6.8 6.7
Medical clinics ....................... 74.4 76.3 77.6 78.0 77.9
Dental clinics ......................... 51.1 52.2 53.1 53.4 53.3
Beds
Number
Total ......................................... 1,839,376 1,798,637 1,756,115 1,730,339 1,712,539
Hospitals ................................ 1,642,593 1,631,473 1,609,403 1,593,354 1,583,073
Medical clinics ....................... 196,596 167,000 146,568 136,861 129,366
Dental clinics ......................... 187 164 144 124 100
Rates per 100,000 population
Total ......................................... 1,443.4 1,407.7 1,375.3 1,351.2 1,340.0
Hospitals ................................ 1,289.0 1,276.9 1,260.4 1,244.3 1,238.7
Medical clinics ....................... 154.3 130.7 114.8 106.9 101.2
Dental clinics ......................... 0.1 0.1 0.1 0.1 0.1
Source: Ministry of Health, Labour and Welfare.

National medical care expenditures have been increasing gradually. In

fiscal 2010, the expenditures totaled 37.4 trillion yen or 10.71 percent of
Japan's national income. The cost of medical care per person averaged
292,200 yen in fiscal 2010.
Medical costs for treating the latter-stage elderly in fiscal 2010 were 12.7
trillion yen, or about one-third of national medical care expenditure, and
accounted for 3.61 percent of the national income. The per-capita cost of
medical care for the latter-stage elderly averaged 904,795 yen for the year.
Rising medical costs for the latter-stage elderly, resulting from the rapidly
aging population, etc., is one of the major contributors to the overall
uptrend in national medical care expenditures.

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 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE

Figure 15.4
Trends in Medical Care Expenditures 1)

Trillion yen %
50 12

Proportion of national medical care

expenditures to national income 10
40
(right scale)
Medical care
for the latter-stage elderly 8
(left scale)
30

20
4

10
2

0 0
FY1983 86 89 92 95 98 01 04 07 10
1) The medical care system was changed in 2000.
Source: Ministry of Health, Labour and Welfare.

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 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 16
Education and Culture

© SAITO Jun

At a dye works in Suo-oshima-cho, Yamaguchi Prefecture. Such "warrior" banners

are given as gifts to wish for the healthy growth of boys and to celebrate first festival
visits (Children's Day, May 5). Their bright colors are a technique of traditional
crafts.
 EDUCATION AND CULTURE

1. School-Based Education
Japan's primary and secondary education is based on a 6-3-3 system: 6
years in elementary school, 3 years in lower secondary school, and 3 years
in upper secondary school. The period of compulsory schooling is the 9
years at elementary and lower secondary schools. Higher education
institutions are universities, junior colleges, and colleges of technology.
Other education establishments include kindergartens, which provide
pre-school education, and schools for special needs education. There are
also specialized training colleges and miscellaneous schools for a wide
range of vocational and other practical skills learning. Given the nearly
100-percent upper secondary school entrance rate, the School Education
Law was amended in 1998 to authorize combined lower and upper
secondary schooling, which began at some lower and upper secondary
schools in 1999. On an additional note, school years in Japan start in April
and end in March.

Table 16.1
Educational Institutions in Japan (as of May 1, 2012)
Schools Full-time Students (1,000)
Type of institution teachers
Total National Public Private (1,000) Males Females
Kindergartens ........................... 13,170 49 4,924 8,197 111 814 791
Elementary schools .................. 21,460 74 21,166 220 419 3,462 3,303
Lower secondary schools ......... 10,699 73 9,860 766 254 1,816 1,737
Upper secondary schools ......... 5,022 15 3,688 1,319 237 1,692 1,664
Secondary schools .................... 49 4 28 17 2 14 15
Schools for special needs
education 1) ............................. 1,059 45 1,000 14 76 85 45
Colleges of technology ............. 57 51 3 3 4 49 10
Junior colleges ........................… 372 - 22 350 9 17 125
Universities .............................. 783 86 92 605 178 1,670 1,206
Graduate schools ................... 621 86 75 460 105 183 80
Specialized training colleges ... 3,249 10 199 3,040 40 292 358
Miscellaneous schools.............. 1,392 - 9 1,383 9 61 59
1) Schools for mentally and/or physically challenged children, inclusive of kindergarten to
upper secondary school levels.
Source: Ministry of Education, Culture, Sports, Science and Technology.

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 EDUCATION AND CULTURE

Figure 16.1
Japanese School System
Correspondence
Programs
School Graduate Schools
Year Age Specialized Training Correspondence
24 College General Programs Part-time/
18 Miscellaneous Programs Correspondence
23 Schools Specialized Training Programs
17 College Specialized
22 Programs
16 Specialized Training
21 Colleges of College Upper
15 Technology Secondary Universities
20 Programs
14
Junior
19 Colleges
13
18
12 Part-time/
17 Corre- Upper Upper
11 spondence Upper Secondary Schools Div. Sec.
16 Programs Dept.
10
15
9
14 Lower
Lower
8 Lower Secondary Schools Sec.
13 Div.
Dept.
7
12
6
11 Secondary
5 Schools
10
4 Element.
9 Elementary Schools Dept.
3
8
2
7
1
6

5 Compulsory Kindergartens Kinder.

Education Dept.
4
Special educ. Schools
3

Source: Ministry of Education, Culture, Sports, Science and Technology.

Of the March 2012 upper secondary school graduates, 53.6 percent went
straight on to enter a university or junior college. The ratio of upper
secondary school graduates who entered a university, junior college, etc. in
2012 was 56.2 percent (56.8 percent of male and 55.6 percent of female
graduates), including graduates from previous years.

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 EDUCATION AND CULTURE

Table 16.2
Number of University Students (as of May 1)
2000 2005 2010 2011 2012
Total ............................... 2,740,023 2,865,051 2,887,414 2,893,489 2,876,134
Undergraduate ................ 2,471,755 2,508,088 2,559,191 2,569,349 2,560,909
Graduate schools ............ 205,311 254,480 271,454 272,566 263,289
Others 1) .......................... 62,957 102,483 56,769 51,574 51,936
Females ....................... 992,312 1,124,900 1,185,580 1,200,182 1,206,134
Undergraduate ............. 913,222 1,009,217 1,077,782 1,094,283 1,101,644
Graduate schools ......... 54,216 75,734 82,133 82,534 80,460
Others 1) ....................... 24,874 39,949 25,665 23,365 24,030
National .......................... 624,082 627,850 625,048 623,304 618,134
Public .............................. 107,198 124,910 142,523 144,182 145,578
Private ............................ 2,008,743 2,112,291 2,119,843 2,126,003 2,112,422
1) Auditing students, non-degree students, research students, etc.
Source: Ministry of Education, Culture, Sports, Science and Technology.

Figure 16.2
University Students by Major Subject (as of May 1, 2012)
Humanities
7.4%

Others Humanities Others

14.8% Social
Education 20.5 Education 18.6 sciences Natural
and teacher and teacher 10.9 sciences
training training
7.0 8.5
6.3
Undergraduate Graduate
Medical 2,560,909 Medical 263,289
and and
dentistry
students Social
dentistry students
sciences
2.6 1.0
33.7
Agriculture
Agriculture Engineering 5.5
3.0 15.2 Engineering
41.8

Natural
sciences
3.2

Source: Ministry of Education, Culture, Sports, Science and Technology.

As of May 1, 2012, a total of 110,518 foreign students were enrolled in

Japanese junior colleges, universities, and graduate schools. Of the total
foreign students, 91.0 percent were from Asia, including 69,117 from
China, 14,097 from the Republic of Korea and 3,042 from Taiwan.

176
 EDUCATION AND CULTURE

Fiscal 2010 public expenditure on education in Japan was 22.8 trillion yen,
which was equivalent to 14.3 percent of the net expenditure of national
and local governments. Fiscal 2010 school expenditure by households with
children attending public school averaged 54,929 yen per elementary
school pupil, 131,501 yen per lower-secondary school student and 237,669
yen per upper-secondary school student.

Figure 16.3
Public Expenditures on Education
Trillion yen %
30 18

28 Percentage of public expenditure on

education to net national and local 16
government expenditure (right scale)
26
▼

24 Educational administration 14
(left scale)

22
12
20

Social
18 10
education

16
School
8
education
14
∼ ∼
∼ ∼
120 06
FY2006 07 08 09 10
Source: Ministry of Education, Culture, Sports, Science and Technology.

177
 EDUCATION AND CULTURE

2. Lifelong Learning
In recent years, people's demands for learning are increasing and the
contents are becoming more diverse and advanced. This has raised more
and more expectations over the realization of a "Lifelong Learning
Society" in which people are able to utilize their learning outcomes.

Table 16.3 Table 16.4

Social Education Facilities Sports Facilities
(as of October 1, 2011) (as of October 1, 2011)
Facilities Number Facilities Public Private
Citizens' public halls ...................... 14,681 Total .................................... 47,571 15,532
Libraries ......................................... 3,274 Fields and tracks ............... 913 17
Museums ........................................ 1,262 Baseball grounds ............... 6,279 143
General museums ........................ 143 Other ball game grounds ... 1,415 325
Science museums ........................ 109 Playgrounds ...................... 7,346 240
Historical museums ..................... 448 Swimming pools, indoor .. 1,615 1,607
Art museums ............................... 452 Swimming pools, outdoor ..... 2,093 87
Outdoor museums ....................... 18 Gymnasiums ..................... 6,949 356
Zoological gardens ...................... 32 Judo and Kendo gyms ..... 2,364 405
Botanical gardens ........................ 10 Tennis courts, indoor ........ 194 322
Zoological and botanical gardens .... 8 Tennis courts, outdoor ...... 4,963 886
Aquariums ................................... 42 Physical training gyms ...... 1,681 1,479
Centers for children and youths ..... 1,048 Dance halls ....................... 113 1,269
Women's education centers ............ 375 Golf courses ...................... 162 2,182
Culture halls ................................... 1,866 Golf practice ranges .......... 28 1,641
Lifelong learning centers ............... 409 Camping sites ................... 1,565 379
Source: Ministry of Education, Culture, Gate ball and croquet fields .. 2,030 139
Sports, Science and Technology. Source: Ministry of Education, Culture,
Sports, Science and Technology.

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 EDUCATION AND CULTURE

Today, in order to develop a society where people have the freedom to

continue learning throughout their lives, efforts are being made to develop
learning opportunities such as school education, social education, cultural
activities, sports activities, recreational activities, volunteer activities, and
corporate in-house education. In providing places and opportunities for
such lifelong learning, educational institutions, social education facilities
(public halls, libraries, museums, etc.) and sports facilities play a vital role.

3. Leisure Activities
The results of the 2011 Survey on Time Use and Leisure Activities
conducted with people aged 10 and over show that the per-day average
amount of free time was 6 hours and 27 minutes, which is the time
remaining after activities that are physiologically necessary (sleeping,
eating, etc.) and societally essential (work, housework, etc.). It was found
that 1 hour and 14 minutes of free time was spent on hobbies, sports,
learning for personal development, volunteer activities, etc.

Table 16.5
Major Leisure Activities by Gender (10 years old and over) (2011)
Leisure Activities Total Males Females
Free time per day (hours and minutes) .......................... 6:27 6:38 6:16
Active leisure time (hours and minutes) ..................... 1:14 1:28 1:04
1)
Participation rate (%)
Hobbies and amusements ............................................ 84.8 84.8 84.9
2)
Sports ....................................................................... 63.0 67.9 58.3
2)
Learning, self-education and training ....................... 35.2 34.3 36.1
3)
Travel (domestic) ..................................................... 57.9 57.2 58.6
3)
Travel (abroad) ......................................................... 8.9 8.5 9.2
Volunteer activities ..................................................... 26.3 24.5 27.9
1) Total participants / Population (10 years old and over) × 100 2) Excluding school and
professional activity. 3) Excluding day trips.
Source: Statistics Bureau, MIC.

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 EDUCATION AND CULTURE

The participation rate (percentage of people who engaged in the activity

within the past 12 months) for "sports" was 63.0 percent. The most popular
sport for both genders was "walking or light physical exercise" (men: 31.1
percent; women: 39.2 percent). Other popular sports for men were
"bowling" (15.1 percent) and "golf (including golf practice range)" (13.7
percent). For women, such sports were "bowling" (10.6 percent) and
"swimming" (9.7 percent). The participation rate for "learning,
self-education, and training (excluding school and professional activities)"
was 35.2 percent. Men preferred "computing etc." (14.8 percent) and
"foreign language" (11.0 percent), while women preferred "cooking,
sewing or home management, etc." (12.6 percent), as well as "arts and
culture" (12.3 percent).

Figure 16.4
Participation Rates for Sports by Gender and Age Group
% %
100 100

Males Females
80 80

60 60

40 40
2006
2011
20 20

0 0
10 15 20 25 30 35 40 45 50 55 60 65 70 75 10 15 20 25 30 35 40 45 50 55 60 65 70 75
| | | | | | | | | | | | | + | | | | | | | | | | | | | +
14 19 24 29 34 39 44 49 54 59 64 69 74 14 19 24 29 34 39 44 49 54 59 64 69 74

Source: Statistics Bureau, MIC.

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 EDUCATION AND CULTURE

4. Publishing and Mass Media

The total number of books and magazines published in Japan during 2011
was 1.31 billion and 3.13 billion, respectively, of which 1.93 billion were
monthlies and 1.20 billion were weeklies.
A total of 78,863 new book titles were released in 2011. The number of
magazine titles published was 3,949 (including 2,202 monthlies and 108
weeklies) at the end of March 2011. In recent years, the spread of
electronic media, such as the Internet and e-books, that compete with
traditional print media has had a heavy impact. The publishing industry is
facing a major turning point.
A total of 118 daily newspapers were in circulation, and the penetration
was 0.88 newspapers per household as of October 2012.

Figure 16.5
Trends in Number of Publications
Millions
3,500

3,000 Monthly magazines

▼

2,500

2,000 ▲
Weekly magazines
1,500
▲
Books
1,000

500

0
1991 93 95 97 99 01 03 05 07 09 11

Source: Shuppan News Co., Ltd.

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 EDUCATION AND CULTURE

Table 16.6
Number of New Publications
(Titles)
Subject 1995 2000 2005 2010 2011
Total .......................................... 58,310 65,065 78,304 77,773 78,863
General works ........................ 2,794 2,587 2,551 2,080 1,912
Philosophy ............................. 2,731 2,997 3,763 4,381 4,292
General history ....................... 3,917 4,634 5,102 4,969 4,655
Social sciences ....................... 12,578 14,099 16,201 15,757 15,732
Natural sciences ..................... 4,460 5,218 6,226 6,780 6,668
Technology and engineering .. 4,774 6,105 8,104 8,499 8,583
Industry and commerce .......... 2,160 3,000 3,337 3,478 3,456
Art .......................................... 7,540 8,895 10,884 11,535 12,454
Languages .............................. 1,391 1,766 2,063 1,884 1,948
Literature ................................ 11,427 11,484 13,595 12,879 12,989
Children's books .................... 3,510 3,334 5,064 4,675 4,592
School textbooks ................... 1,028 946 1,414 856 1,582
Source: Shuppan News Co., Ltd.

Figure 16.6
Newspaper Circulation by Country (2004)
Millions
150 100 50 0 0 200 400 600

China

Japan

U.S.A.

Germany Per 1,000

Total population
Brazil

Australia

South Africa

Source: UNESCO; World Association of Newspapers.

182
 EDUCATION AND CULTURE

Japan has a public broadcasting network (NHK: Nippon Hoso Kyokai, or

Japan Broadcasting Corporation), as well as commercial networks. NHK
was the pioneer broadcasting station, and has been funded through fees
paid by subscribers.
Major broadcasting services can be divided roughly into three categories:
terrestrial, satellite, and cable television. Terrestrial digital broadcasting
was launched in some areas of the Kanto, Kinki and Chukyo regions in
December 2003 and then also in other areas, including all prefectural
capitals, in December 2006. As of March 31, 2012, analog broadcasting
ended and was completely replaced with terrestrial digital broadcasting in
all parts of Japan. Satellite broadcasters offer an increasing number of
channels through, for example, new digital broadcasting which began in
March 2002.

Figure 16.7
Subscribers of Cable Television Service
(Self-originating broadcasting using licensed facilities) 1)

Millions %
35 60
Penetration rate for households
30 (right scale)
Subscribers 50
(left scale)
25
40
20
30
15
20
10

5 10

0 0
2006 07 08 09 10 11 12 13

1) As of March each year.

Source: Ministry of Internal Affairs and Communications.

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 EDUCATION AND CULTURE

Subscribers of cable television services (self-originating broadcasting

using licensed facilities) have increased to 27.1 million households, or
50.0 percent of all households in March 2013.
In 2012, advertising expenditures on the four major media types in Japan
(newspapers, magazines, radio and television) totaled 2.8 trillion yen,
recording the first increase in eight years. This accounted for 47.2 percent
of total 2012 advertising expenditures, which were 5.9 trillion yen. Internet
advertising expenditure made up 14.7 percent, up 7.7 percent from the
previous year.

Table 16.7
Advertising Expenditures by Medium
Satellite
News- Maga- Tele-
Year Total Radio media- Internet Others
papers zines vision
related
Advertising expenditures (billion yen)
2000 6,110.2 1,247.4 436.9 207.1 2,079.3 26.6 59.0 2,053.9
2005 6,823.5 1,037.7 484.2 177.8 2,041.1 48.7 377.7 2,656.3
2010 5,842.7 639.6 273.3 129.9 1,732.1 78.4 774.7 2,214.7
2011 5,709.6 599.0 254.2 124.7 1,723.7 89.1 806.2 2,112.7
2012 5,891.3 624.2 255.1 124.6 1,775.7 101.3 868.0 2,142.4
Percentage distribution (%)
2000 100.0 20.4 7.2 3.4 34.0 0.4 1.0 33.6
2005 100.0 15.2 7.1 2.6 29.9 0.7 5.6 38.9
2010 100.0 11.0 4.7 2.2 29.6 1.3 13.3 37.9
2011 100.0 10.5 4.4 2.2 30.2 1.6 14.1 37.0
2012 100.0 10.6 4.3 2.1 30.2 1.7 14.7 36.4
Source: Dentsu Inc.

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 EDUCATION AND CULTURE

5. Cultural Assets
As a country with a long history, Japan has been endowed with an
abundance of valuable cultural assets, including works of art, historic
landmarks, and many natural monuments. To pass on this cultural heritage
to future generations, the Japanese government has accorded many of the
most important assets as national treasures, designated important cultural
properties, historic sites, places of scenic beauty, or natural monuments,
based on the Cultural Assets Preservation Law. The government has also
been engaged in efforts to preserve and repair existing cultural assets,
search for and recover other buried artifacts and restore historic landmarks.

Table 16.8
Cultural Properties Designated by the National Government
(as of May 1, 2013)
Type of cultural properties Number
Designated important cultural properties ................................................. 12,874 a) 1,085
Fine and applied arts ............................................................................. 10,476 a) 868
Buildings ............................................................................................... 2,398 a) 217
Historic sites, places of scenic beauty and natural monuments ............... 3,088 b) 172
Historic sites .......................................................................................... 1,709 b) 61
Places of scenic beauty .......................................................................... 374 b) 36
Natural monuments ............................................................................... 1,005 b) 75
Important tangible folk cultural properties ............................................... 213
Important intangible folk cultural properties ........................................... 281
Important intangible cultural properties
Recognized individuals ......................................................................... 79
Performing arts ................................................................................... 38
Craft techniques ................................................................................. 41
Recognized holding groups ................................................................... 26
Performing arts ................................................................................... 12
Craft techniques ................................................................................. 14
Traditional building preservation areas .................................................... 102
a) National treasures only. b) Specially designated places only.
Source: Ministry of Education, Culture, Sports, Science and Technology.

As of May 1, 2013, 12,874 items were assigned as designated important

cultural properties, of which 1,085 were classified as national treasures. In
addition, the government has provided support for such activities as
theatrical performances, music, handicrafts and other important intangible

185
 EDUCATION AND CULTURE

cultural properties. It also has worked to preserve important folk-cultural

properties such as annual cultural events and folk performing arts, as well
as to train people to carry on such traditions.
Japan ratified the UNESCO World Heritage Convention (the Convention
Concerning the Protection of the World Cultural and Natural Heritage) in
1992. In June 2011, Ogasawara Islands, Tokyo, was inscribed as the 15th
World Heritage Site in Japan. Located approximately 1,000 kilometers
south of the heart of Tokyo, Ogasawara Islands comprise a group of
approximately 30 islands that vary in size. Every one of those islands is an
oceanic island that has never been connected to any continent since its
formation and is, therefore, the habitat of a great number of living
creatures native to it, a fact that gave the islands the nickname "Galapagos
of the Orient."
This was then followed by "Hiraizumi - Temples, Gardens and
Archaeological Sites Representing the Buddhist Pure Land" being named
as the 16th World Heritage Site in June 2011. It consists of temples, former
temple sites, gardens and other sites. All those temples were built with the
involvement of the Oshu Fujiwara clan, which flourished in the Tohoku
region in the 12th century throughout four generations.
In June 2013, "Fujisan [Mt. Fuji], Sacred Place and Source of Artistic
Inspiration" straddling the border between Yamanashi and Shizuoka
Prefectures, was designated Japan's 17th World Heritage Site. A graceful,
conical stratovolcano, Mt. Fuji is Japan's highest mountain. It is famed
worldwide as a symbol of Japan. The mountain's majestic, sublime form
has inspired the development of the Japanese faith in nature and Japan's
unique artistic culture. The mountain inspired the development of Japanese
belief in sacred mountains, as well as unique Japanese artistic culture with
outstanding universal value, such as ukiyo-e by KATSUSHIKA Hokusai
and UTAGAWA Hiroshige, which were influential far beyond Japan's
borders in the late 19th century. Across many centuries, Mt. Fuji has not
only shown a profound relationship with various aspects of one country's
culture and expressed the cultural tradition of the sacred mountain, it has
become famed as a striking example of the pattern for the world's "great
mountains." It is thus a mountain with outstanding universal value.

186
 EDUCATION AND CULTURE

Table 16.9
Heritage Sites Inscribed on the World Heritage List (as of June 22, 2013)
Type of
Year World heritage Prefecture
heritage
1993 Cultural Buddhist Monuments in the Horyu-ji Area Nara
Cultural Himeji-jo (castle) Hyogo
Natural Yakushima (island) Kagoshima
Natural Shirakami-Sanchi (mountains) Aomori, Akita
1994 Cultural Historic Monuments of Ancient Kyoto Kyoto, Shiga
1995 Cultural Historic Villages of Shirakawa-go and Gokayama Gifu, Toyama
1996 Cultural Hiroshima Peace Memorial (Genbaku Dome) Hiroshima
Cultural Itsukushima Shinto Shrine Hiroshima
1998 Cultural Historic Monuments of Ancient Nara Nara
1999 Cultural Shrines and Temples of Nikko Tochigi
2000 Cultural Gusuku Sites and Related Properties of the Okinawa
Kingdom of Ryukyu
2004 Cultural Sacred Sites and Pilgrimage Routes in the Kii Mie, Nara,
Mountain Range Wakayama
2005 Natural Shiretoko (peninsula) Hokkaido
2007 Cultural Iwami Ginzan Silver Mine and its Shimane
Cultural Landscape
2011 Natural Ogasawara Islands Tokyo
Cultural Hiraizumi-Temples, Gardens and Archaeological Iwate
Sites Representing the Buddhist Pure Land
2013 Cultural Fujisan, Sacred Place and Source of Aristic Shizuoka, Yamanashi
Inspiration
Source: Ministry of Education, Culture, Sports, Science and Technology.

In 2006, the UNESCO Convention for the safeguarding of the intangible

cultural heritage entered into force. As of April 2013, Japan has 21 entries
on its list, including: nogaku theater, ningyo johruri bunraku puppet
theater and kabuki theater (the kind of kabuki performed by a traditional
method of acting and directing).

187
 “Statistical Handbook of Japan 2013” by Statistics Bureau, Japan

Chapter 17
Government System

© Secretariat of the House of Councillors

Japan's National Diet Building (Chiyoda-ku, Tokyo) lit up at night. The current
National Diet Building was completed in November 1936. It is a popular tourist spot
in Tokyo. Many group tours and children on school trips visit there.
 GOVERNMENT SYSTEM

1. Division of Powers
The Japanese Constitution, which went into effect on May 3, 1947, is
based on three core principles: sovereignty of the people, respect for
fundamental human rights and pacifism. To control governmental power
effectively through checks and balances, governmental power is separated
into three independent branches: legislative, executive and judicial, and
each contains a separate set of agencies and personnel.

Figure 17.1
Separation of the Three Branches of Government
under the Japanese Constitution

Diet

Designation of (Legislative)
the Prime Minister /
Vote of non-
confidence to the
Cabinet
Judgement on the
constitutionality of laws
Convocation of
the Diet / Election
Dissolution
of the House
of Representatives
Impeachment
of judges
Nation
（Sovereignty）

National
Executive referendum

Judgement on cabinet orders, regulations

or administrative actions
Cabinet Supreme Court
Designation of the Chief Justice of
(Executive) the Supreme Court and appointment (Judicial)
of other judges

Source: Prime Minister of Japan and His Cabinet.

189
 GOVERNMENT SYSTEM

Figure 17.2
Government Organization of Japan 1) (FY2013)
〔Legislative Branch〕
Ministry of Internal Affairs and
House of Representatives Communications (5,226)

Diet

House of Councillors Ministry of Justice (52,352)

(3,891)

〔Administrative (Executive) Branch〕 Ministry of Foreign Affairs (5,753)

Cabinet Secretariat
Ministry of Finance (71,131)
Cabinet Cabinet Office (14,335)
Ministry of Education, Culture, Sports, (2,072)
(1,555) Imperial Household Agency Science and Technology

Fair Trade Commission Ministry of Health, Labour and Welfare (31,826)

National Public Safety Ministry of Agriculture,

Commission (22,717)
Forestry and Fisheries

Financial Services Agency Ministry of Economy,

(8,088)
Trade and Industry
Consumer Affairs Agency
Ministry of Land, Infrastructure, (59,177)
Transport and Tourism

Reconstruction Agency
Ministry of the Environment (1,852)
(689) 2)

3)
Ministry of Defense (21,435)
Cabinet Legislation Bureau
(0)

National Personnel Authority

Board of Audit

(1,261)

〔Judicial Branch〕
District Courts Summary Courts

Courts Supreme Court High Courts

Family Courts
(25,744)

1) Figures in parentheses refer to budgetary fixed number of national government employees. 2) Of

the 689 employees, 160 are from the Reconstruction Agency and 529 are from other ministries. 3)
Excluding the number of the personnel of the Self-Defense Forces.
Source: Ministry of Internal Affairs and Communications; Ministry of Finance.

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 GOVERNMENT SYSTEM

2.The Legislative Branch

The Diet is the highest organ of state power, and is the sole law-making
organ of the State. The Diet consists of the House of Representatives and
the House of Councillors. Both Houses consist of elected members,
representative of all the people.
The most important responsibility of the Diet is to enact legislation. The
Diet also has the authority to fulfill a number of additional functions,
including the deliberation and passage of the budget and other matters of
fiscal importance, the approval of treaties, the designation of the Prime
Minister and the initiation of motions to amend the Constitution. Each
House may conduct investigations relating to the government, and demand
the presence and testimony of witnesses, and the production of records.
For the Diet to pass a resolution, the agreement of both Houses of the Diet
is necessary. However, when the two Houses differ in their resolutions
regarding legislative bills, draft budgets, the approval of treaties or the
designation of the Prime Minister, under the terms of the Constitution,
decision of the House of Representatives overrides that of the House of
Councillors.
The term of office for Diet members is set by the Constitution. Members
of the House of Representatives serve a four-year term, while members of
the House of Councillors, six years. Elections for the latter are held every
three years, so that one half of the seats are contested in each election.
The House of Representatives has 480 members. Of these, 300 are elected
under a single-seat constituency system, while 180 are elected under a
proportional representation system in which the nation is divided into 11
regions. The last general election was held in December 2012. The House
of Councillors has 242 members, of whom 96 are elected through
proportional representation, and 146 are elected as representatives from 47
electoral districts of the nation, i.e. prefectures. The last regular election
was held in July 2013.
All Japanese citizens, both men and women, aged 20 years or older, have
the right to vote in elections for both Houses of the Diet. Furthermore,
both men and women above the qualifying age are eligible to run in
elections. The qualifying age for members of the House of Representatives
is 25 years or older, while the qualifying age for members of the House of
Councillors is 30 years or older.

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 GOVERNMENT SYSTEM

Table 17.1
Number of the Diet Members by Political Group
House of Representatives (as of June 3, 2013) House of Councillors (as of July 23, 2013)
Membership 480, Vacancies 0 Membership 242, Vacancies 5
Name Males Females Name Males Females

Incumbents ................................... 441 39 Incumbents ................................... 193 44

Liberal Democratic Party 271 23 The Democratic Party of Japan,
The Democratic Party of Japan, and The Shin-Ryokufukai....... 72 14
and Club of Independents ....... 53 3 Liberal Democratic Party........... 68 15
Japan Restoration Party ............. 48 5 New Komeito ............................ 16 3
New Komeito ............................ 28 3 Your Party.................................. 12 1
Your Party.................................. 18 0 People's Life Party ..................... 5 3
Japanese Communist Party ....... 7 1 Japanese Communist Party ....... 4 2
People's Life Party ..................... 5 2 Green Wind................................ 1 3
Social Democratic Party ............ 2 0 Social Democratic Party ............ 3 1
Japan Restoration Party ............. 2 1
New Renaissance Party ............. 2 0
Independents ............................. 9 2 Independents ............................. 8 1
Source: House of Representatives; House of Councillors.

3. The Executive Branch

The Cabinet exercises its executive power on the basis of the laws and
budgets adopted by the Diet. The Cabinet, composed of the Prime Minister
and other Ministers of State, is collectively responsible to the Diet,
regarding the exercise of the executive power. The Prime Minister is
elected in the Diet from among its members. The majority of the ministers
of state to be appointed by the Prime Minister must be Diet members. Thus,
Japan adopts the parliamentary Cabinet system, in which the organization
and existence of the Cabinet rest on the confidence in the Diet.
The Cabinet's powers include the following: (i) implementing laws; (ii)
engaging in foreign diplomacy; (iii) signing treaties; (iv) overseeing the
operational affairs of public officers; (v) formulating a budget and
submitting it to the Diet; (vi) enacting Cabinet orders; and (vii) deciding
amnesty. In addition, the Cabinet powers also include naming the Chief
Justice of the Supreme Court and appointing other judges. The Cabinet
also gives advice and approval to the Emperor in matters of state, and
bears the responsibility for this.

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 GOVERNMENT SYSTEM

Table 17.2
Successive Prime Ministers
1) 1)
Date Name Date Name
Dec. 26, 2012 Shinzo ABE Apr. 26, 2001 Junichiro KOIZUMI
Sep. 2, 2011 Yoshihiko NODA Apr. 5, 2000 Yoshiro MORI
Jun. 8, 2010 Naoto KAN Jul. 30, 1998 Keizo OBUCHI
Sep. 16, 2009 Yukio HATOYAMA Jan. 11, 1996 Ryutaro HASHIMOTO
Sep. 24, 2008 Taro ASO Jun. 30, 1994 Tomiichi MURAYAMA
Sep. 26, 2007 Yasuo FUKUDA Apr. 28, 1994 Tsutomu HATA
Sep. 26, 2006 Shinzo ABE Aug. 9, 1993 Morihiro HOSOKAWA
1) Date of initial cabinet formation.
Source: Prime Minister of Japan and His Cabinet.

4. The Judicial Branch

Judicial power resides in the courts and is independent from the executive
branch and the legislative branch.
The Constitution provides for the establishment of the Supreme Court as
the highest court with final judgment, while the Court Act provides for
four lower-level courts (High Court, District Court, Family Court and
Summary Court). At present, there are eight High Courts, 50 District
Courts, 50 Family Courts and 438 Summary Courts throughout the nation.
To ensure fair judgments, Japan uses a three-tiered judicial system. The
first courts in the court hierarchy are the District Courts, the second being
the High Courts, and the highest court being the Supreme Court. The
system allows a case to be heard and ruled on up to three times in principle,
should a party involved in the case so desire. The Summary Courts and
Family Courts handle simple cases, domestic relations and cases involving
juveniles as first instances.
The Supreme Court has the authority to deliver the final judgment on the
legitimacy of any law, ordinance, regulation, or disposition. It is chaired by
the Chief Justice and 14 judges.
A new saiban-in (lay judge) system began in May 2009. This is a system
under which citizens participate in criminal trials as judges to determine,
together with professional judges, whether the defendant is guilty or not
and, if found guilty, what sentence should apply. What is hoped for is that
the public's participation in criminal trials will make citizens feel more
involved in the justice process and make the trials easier to understand,

193
 GOVERNMENT SYSTEM

thus leading to the public's greater trust in the justice system. A total of
3,173 people were tried in saiban-in trials held between the start of the
system and December 2011.

Table 17.3
Judicial Cases Newly Commenced, Terminated or Pending (All courts)
(Thousands)
1)
Civil and administrative cases Criminal cases
Year
Commenced Terminated Pending Commenced Terminated Pending
1995 2,411 2,390 697 1,555 1,555 31
2000 3,052 3,062 780 1,638 1,636 43
2005 2,713 2,827 576 1,568 1,572 47
2010 2,179 2,241 536 1,158 1,161 36
2011 1,985 2,046 476 1,106 1,107 35
Domestic cases Juvenile cases 1)
Year
Commenced Terminated Pending Commenced Terminated Pending
1995 412 414 66 296 299 49
2000 561 555 78 286 288 49
2005 718 713 99 237 238 32
2010 815 815 106 165 168 25
2011 816 815 107 153 153 25
1) Persons involved.
Source: Supreme Court.

5. Local Governments
The affairs of local governments are conducted on two levels in Japan: by
the prefectures and by the municipalities within each prefecture. As of
January 1, 2013, Japan has 47 prefectures, within which there are 1,719
municipalities, plus the 23 wards (ku) in metropolitan Tokyo. In order to
strengthen the administrative and fiscal foundation of the municipalities,
municipal mergers were promoted by law. Consequently, the number of
municipalities was reduced by nearly half from the 3,232 existing at the
end of March 1999.
Municipalities that satisfy certain population criteria (i.e., 500,000 people
or more) are eligible for designation as "Cabinet-Order designated cities."
This designation gives them administrative and fiscal authority equivalent
to those of prefectures. With the addition of Kumamoto-shi in April 2012,
there are presently 20 cities that have earned this designation. (See the map
on the inside back cover.)

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 GOVERNMENT SYSTEM

Figure 17.3
Government System by Level 1) (as of January 1, 2013）

National level Local level

Municipalities
Cabinet-Order
National Wards
Prefectures (47) designated cities
government
(20)

Cities (769)

Towns (746)

Villages (184)

23 wards (ku) of Tokyo-to

1) Figures in parentheses indicate number.

Source: Ministry of Internal Affairs and Communications.

Figure 17.4
Local Government Employees by Type of Administrative Services
(as of April 1, 2012)
%
0 20 40 60 80 100

Employed
Police
persons Education 37.8 % 19.7 13.3 10.2
2,768,913
General administrative services Fire services 5.7
Social welfare and public hygiene Hospitals 7.3
Water and sewerage 2.7
Transportation 0.9
Others 2.2
Source: Ministry of Internal Affairs and Communications.

195
 APPENDICES

Appendix 1
Population, Surface Area and Population Density by Prefecture
Surface area (km2) Population density (per km2)
Prefectural Population (1,000)
Prefectures Total area Inhabitable Total area Inhabitable
capital cities
2010 1) 2012
2)
2012 2011 2011 2011
Japan ........................................... 128,057 127,515 377,960 122,151 343 1,046
Hokkaido ............ Sapporo-shi 5,506 5,460 83,457 22,207 70 247
Aomori-ken ........ Aomori-shi 1,373 1,350 9,645 3,233 141 422
Iwate-ken ............Morioka-shi 1,330 1,303 15,279 3,694 86 356
Miyagi-ken ......... Sendai-shi 2,348 2,325 7,286 3,145 319 740
Akita-ken ........... Akita-shi 1,086 1,063 11,636 3,194 92 337
Yamagata-ken .... Yamagata-shi 1,169 1,152 9,323 2,855 125 407
Fukushima-ken ...Fukushima-shi 2,029 1,962 13,783 4,229 144 471
Ibaraki-ken ......... Mito-shi 2,970 2,943 6,096 3,982 485 743
Tochigi-ken ........ Utsunomiya-shi 2,008 1,992 6,408 2,982 312 671
Gunma-ken .........Maebashi-shi 2,008 1,992 6,362 2,301 315 870
Saitama-ken ....... Saitama-shi 7,195 7,212 3,798 2,574 1,898 2,800
Chiba-ken ...........Chiba-shi 6,216 6,195 5,157 3,532 1,205 1,760
Tokyo-to ............ Tokyo (ku -area) 13,159 13,230 2,189 1,392 6,029 9,479
Kanagawa-ken ... Yokohama-shi 9,048 9,067 2,416 1,467 3,749 6,174
Niigata-ken .........Niigata-shi 2,374 2,347 12,584 4,504 188 524
Toyama-ken ....... Toyama-shi 1,093 1,082 4,248 1,853 256 587
Ishikawa-ken ...... Kanazawa-shi 1,170 1,163 4,186 1,388 279 840
Fukui-ken ........... Fukui-shi 806 799 4,190 1,074 192 748
Yamanashi-ken .. Kofu-shi 863 852 4,465 952 192 900
Nagano-ken ........ Nagano-shi 2,152 2,132 13,562 3,314 158 646
Gifu-ken ............. Gifu-shi 2,081 2,061 10,621 2,200 195 941
Shizuoka-ken ......Shizuoka-shi 3,765 3,735 7,781 2,753 482 1,362
Aichi-ken ........... Nagoya-shi 7,411 7,427 5,165 2,975 1,436 2,493
Mie-ken .............. Tsu-shi 1,855 1,840 5,777 2,044 320 904
Shiga-ken ........... Otsu-shi 1,411 1,415 4,017 1,297 352 1,091
Kyoto-fu .............Kyoto-shi 2,636 2,625 4,613 1,177 571 2,236
Osaka-fu ............. Osaka-shi 8,865 8,856 1,901 1,318 4,666 6,721
Hyogo-ken ..........Kobe-shi 5,588 5,571 8,396 2,775 665 2,011
Nara-ken .............Nara-shi 1,401 1,390 3,691 851 378 1,640
Wakayama-ken .. Wakayama-shi 1,002 988 4,726 1,096 211 908
Tottori-ken ......... Tottori-shi 589 582 3,507 911 167 642
Shimane-ken ...... Matsue-shi 717 707 6,708 1,288 106 553
Okayama-ken ..... Okayama-shi 1,945 1,936 7,113 2,227 273 871
Hiroshima-ken ... Hiroshima-shi 2,861 2,848 8,480 2,291 337 1,246
Yamaguchi-ken .. Yamaguchi-shi 1,451 1,431 6,114 1,716 236 840
Tokushima-ken .. Tokushima-shi 785 776 4,147 1,024 188 762
Kagawa-ken ....... Takamatsu-shi 996 989 1,877 1,003 529 989
Ehime-ken .......... Matsuyama-shi 1,431 1,415 5,679 1,667 251 854
Kochi-ken ...........Kochi-shi 764 752 7,105 1,161 107 653
Fukuoka-ken ...... Fukuoka-shi 5,072 5,085 4,979 2,775 1,020 1,830
Saga-ken .............Saga-shi 850 843 2,440 1,333 347 635
Nagasaki-ken ......Nagasaki-shi 1,427 1,408 4,106 1,634 345 867
Kumamoto-ken .. Kumamoto-shi 1,817 1,807 7,405 2,732 245 664
Oita-ken ............. Oita-shi 1,197 1,185 6,340 1,746 188 682
Miyazaki-ken ..... Miyazaki-shi 1,135 1,126 7,736 1,846 146 613
Kagoshima-ken .. Kagoshima-shi 1,706 1,690 9,189 3,270 185 520
Okinawa-ken ...... Naha-shi 1,393 1,409 2,277 1,168 615 1,200
1) Population census. 2) Population estimates.
Source: Statistics Bureau, MIC; Ministry of Land, Infrastructure, Transport and Tourism.

196
 APPENDICES

Appendix 2
Main Economic Indicators of Selected Countries
Item Year Japan Argentina Australia Brazil Canada
Population (thousands) 2010 128,057 40,374 22,404 195,210 34,126
2011 127,799 40,729 22,741 196,935 34,487
2012 127,515 41,087 23,050 198,656 34,838
Projection (medium variant) 2050 97,076 51,024 33,735 231,120 45,228

Employed persons (1,000) 2008 a 62,890 b 10,304 10,740 c 90,786 17,126

Unemployed persons (1,000) 2008 a 3,020 b 883 471 c 8,060 1,119
Unemployment rates (%) 2008 a 4.6 b 7.9 4.2 c 8.2 6.1
Hours of work per week 2008 a 42.1 bd 45.3 37.7 c 43.6 37.2
(manufacturing)

Industrial production 2011 91.1 … 101.8 … 92.8

index (2005=100) 2012 91.9 … #e 107.2 … 93.9

Gross domestic product 2010 5,511 370 1,283 2,143 1,577

(US$ billion) 2011 5,905 448 1,515 2,477 1,737

Wholesale price index 2011 f 101.5 g 197.5 h 119.2 139.7 j 110.5

(2005=100) Dec. 2012 f 100.4 g 239.3 eh 118.3 154.1 j 110.9
Consumer price index 2011 f 99.7 168.9 119.7 134.0 112.0
(2005=100) 2012 f 99.7 185.9 121.8 141.3 113.7

Broad money
Percent changes from End of 2011 2.9 26.0 8.0 18.5 …
the previous year (%) End of 2012 2.2 34.8 7.1 15.9 …

Imports, CIF (US$ billion) 2012 885.6 68.5 260.9 228.4 469.6
Exports, FOB (US$ billion) 2012 798.6 75.2 a 271.7 242.6 461.8

Gold and foreign End of 2011 1,259,494 43,333 42,922 350,415 65,657
exchange reserves End of 2012 1,228,471 40,028 45,081 369,682 66,893
(US$ million)

Foreign exchange rates Australian Canadian

Yen Pesos Reais
(national currency per US$) dollars dollars
End of year 2012 86.32 4.8611 0.9558 2.0772 0.9897
End of period average Mar. 2013 94.04 5.0645 0.9676 1.9832 1.0248
a) 2011. b) Urban agglomerations. c) 2007. d) 2005. e) Third quarter. f) 2010=100. g) Producer prices.
h) Manufacturing output. j) Industry selling.

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 APPENDICES

Appendix 2
Main Economic Indicators of Selected Countries (Continued)
Item Year China Euro Area France Germany India
Population (thousands) 2010 1,359,821 501,085 63,231 83,017 1,205,625
2011 1,368,440 502,369 63,582 82,893 1,221,156
2012 1,377,065 503,930 63,937 82,800 1,236,687
Projection (medium variant) 2050 1,384,977 … 73,212 72,566 1,620,051

Employed persons (1,000) 2008 774,800 … 25,913 38,880 a 368,966

Unemployed persons (1,000) 2008 b 8,860 … 2,070 3,141 a 16,634
Unemployment rates (%) 2008 b 4.2 … 7.4 7.3 a 4.3
Hours of work per week 2008 b 47.9 … 36.7 38.4 c 46.9
(manufacturing)

Industrial production 2011 … 100.5 92.6 113.3 158.9

index (2005=100) 2012 … d 96.2 90.5 112.6 160.1

Gross domestic product 2010 5,951 … 2,566 3,306 1,678

(US$ billion) 2011 7,204 … 2,776 3,604 1,898

Wholesale price index 2011 … e 118.4 e 113.0 e 115.9 145.8

(2005=100) Dec. 2012 … e 122.5 e 115.5 e 118.4 161.3
Consumer price index 2011 … f 112.9 110.1 110.4 165.4
(2005=100) 2012 … df 117.0 92.6 112.6 180.8

Broad money
Percent changes from End of 2011 17.3 1.7 … … 16.1
the previous year (%) End of 2012 14.4 3.4 … … …

Imports, CIF (US$ billion) 2012 1,817.8 2,016.6 663.6 1,168.7 488.5
Exports, FOB (US$ billion) 2012 2,048.9 2,077.7 556.6 1,410.4 294.7

Gold and foreign End of 2011 3,204,609 g 335,343 52,819 72,796 272,249
exchange reserves End of 2012 3,332,943 g 351,189 58,443 73,288 271,551
(US$ million)

Foreign exchange rates

Yuan Euros Euros Euros Rupees
(national currency per US$)
End of year 2012 6.2901 0.7623 0.7623 0.7623 54.648
End of period average Mar. 2013 6.2746 0.7714 0.7714 0.7714 54.405
a) 2000. b) Urban areas. c) 2006. d) Dec. 2012. e) Producer prices. f) Harmonized CPI. g) Including
European Central Bank.

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 APPENDICES

Appendix 2
Main Economic Indicators of Selected Countries (Continued)
Item Year Indonesia Italy Korea, Rep. of Mexico Russia
Population (thousands) 2010 240,676 60,509 48,454 117,886 143,618
2011 243,802 60,729 48,733 119,361 143,438
2012 246,864 60,885 49,003 120,847 143,170
Projection (medium variant) 2050 321,377 60,015 51,034 156,102 120,896

Employed persons (1,000) 2008 102,553 23,405 23,577 43,867 70,965

Unemployed persons (1,000) 2008 9,395 1,692 769 1,593 4,791
Unemployment rates (%) 2008 8.4 6.7 3.2 3.5 6.3
Hours of work per week 2008 43.8 35.9 43.7 46.4 a 6.8
(manufacturing)

Industrial production 2011 b 117.8 87.8 147.4 109.7 117.4

index (2005=100) 2012 bc 129.2 82.4 148.7 113.6 120.4

Gross domestic product 2010 708 2,057 1,015 1,031 1,488

(US$ billion) 2011 847 2,196 1,116 1,155 1,858

Wholesale price index 2011 182.8 d 117.7 d 122.1 136.6 …

(2005=100) Dec. 2012 194.2 d 121.7 d 121.8 143.6 …
Consumer price index 2011 153.4 112.9 120.7 128.5 176.5
(2005=100) 2012 160.0 116.4 123.4 133.7 185.4

Broad money
Percent changes from End of 2011 16.4 … 8.9 10.0 20.9
the previous year (%) End of 2012 14.9 … 5.1 10.2 12.1

Imports, CIF (US$ billion) 2012 191.0 487.2 461.8 389.3 369.0
Exports, FOB (US$ billion) 2012 188.5 501.0 547.9 370.9 529.3

Gold and foreign End of 2011 106,664 53,421 304,349 144,174 455,473
exchange reserves End of 2012 108,966 54,739 323,353 160,628 488,233
(US$ million)

Foreign exchange rates

Rupiah Euros Won Pesos Rubles
(national currency per US$)
End of year 2012 9,656.8 0.7623 1,076.4 12.867 30.740
End of period average Mar. 2013 e 9,697.3 0.7714 1,103.8 12.575 30.798
a) Per day. b) Manufacturing production. c) Dec. 2012. d) Producer prices. e) Feb. 2013.

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 APPENDICES

Appendix 2
Main Economic Indicators of Selected Countries (Continued)
Item Year Saudi Arabia South Africa Turkey U.K. U.S.A.
Population (thousands) 2010 27,258 51,452 72,138 62,066 312,247
2011 27,762 51,949 73,059 62,427 314,912
2012 28,288 52,386 73,997 62,783 317,505
Projection (medium variant) 2050 40,388 63,405 94,606 73,131 400,853

Employed persons (1,000) 2008 7,987 13,713 21,194 29,364 145,362

Unemployed persons (1,000) 2008 428 4,075 2,611 1,751 8,924
Unemployment rates (%) 2008 5.1 22.9 11.0 5.7 5.8
Hours of work per week 2008 55.6 a 175.3 52.8 b 40.9 40.8
(manufacturing)

Industrial production 2011 … … 128.1 90.3 98.4

index (2005=100) 2012 … … 131.3 88.2 101.9

Gross domestic product 2010 456 364 731 2,266 14,419

(US$ billion) 2011 597 408 775 2,429 14,991

Wholesale price index 2011 122.9 c 156.9 c 159.8 d 124.5 c 127.7

(2005=100) Dec. 2012 e 127.4 c 170.3 c 172.4 d 128.4 c 128.0
Consumer price index 2011 136.0 147.0 163.0 119.6 115.2
(2005=100) 2012 142.0 154.9 177.5 123.0 117.6

Broad money
Percent changes from End of 2011 13.3 8.3 15.2 -4.4 6.6
the previous year (%) End of 2012 16.5 5.2 10.4 0.8 4.9

Imports, CIF (US$ billion) 2012 139.7 124.2 236.5 642.7 2,335.4
Exports, FOB (US$ billion) 2012 f 364.5 87.4 152.5 474.6 1,546.8

Gold and foreign End of 2011 541,235 42,811 78,660 79,808 150,965
exchange reserves End of 2012 657,023 44,213 100,565 89,132 153,200
(US$ million)

Foreign exchange rates U.S.

Riyals Rand Liras Pounds
(national currency per US$) dollars
End of year 2012 3.7500 8.6445 1.7839 0.6194 1.0000
End of period average Mar. 2013 3.7500 9.1923 1.8087 0.6613 1.0000
a) Per month. 2002. b) 2007. c) Producer prices. d) Manufacturing output. e) Fourth quarter, 2012.
f) 2011.
Source: Statistics Bureau, MIC; Cabinet Office; Ministry of Health, Labour and Welfare; Bank of Japan;
United Nations; International Labour Organization; International Monetary Fund; EUROSTAT.

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 APPENDICES

Appendix 3
Foreign Exchange Rates 1)
(Yen per U.S. dollar)
Year Average End of year
1995 94.06 102.91
1996 108.79 115.98
1997 121.00 129.92
1998 130.90 115.20
1999 113.91 102.08
2000 107.77 114.90
2001 121.53 131.47
2002 125.31 119.37
2003 115.93 106.97
2004 108.18 103.78
2005 110.16 117.48
2006 116.31 118.92
2007 117.76 113.12
2008 103.37 90.28
2009 93.54 92.13
2010 87.78 81.51
2011 79.81 77.57
2012 79.81 86.32
1) Midpoint rate in the interbank foreign
exchange market in Tokyo.
Source: Bank of Japan.

Appendix 4
Conversion Factors
Metric units British Imperial and U.S. equivalents
Length: 1 centimeter (cm) ............................ 0.3937008 inches
3.280840 feet
1 meter (m) ......................................
1.093613 yards
1 kilometer (km) ............................. 0.6213712 miles
2 10.763910 square feet
Area: 1 square meter (m ) ......................... 1.195990 square yards
2
1 square kilometer (km ) ................. 0.3861022 square miles
1 hectare (ha)
......... 2.471054 acres
10,000 square meters (m2)
3 35.31467 cubic feet
Volume: 1 cubic meter (m ) ........................... 1.307951 cubic yards
35.27396 ounces
Weight: 1 kilogram (kg) ................................ 2.204623 pounds
0.9842065 long tons
1 ton (t) ............................................
1.1023113 short tons
0.8798766 imp. quarts
Capacity: 1 liter (ℓ) .......................................... 1.056688 U.S. liq. quarts
Temperature: centigrade (℃) ................................ 5/9 (Fahrenheit-32)

201