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Prepared by Chad Steinberg.
Youth unemployment in Japan at around 11 percent is more than double the national average. But with a relatively low unemployment rate overall and a highly educated labor force, this figure is much lower than youth unemployment rates in other advanced economies.
This calculation assumes that the FLP rate rises from 62 percent in 2010 to 70 percent in 2030.
Despite efforts by the government to reduce gender discrimination—through the passage of two separate equal employment acts in 1986 and 1999—hiring practices by firms continue to be targeted towards male employees.
This also reflects a tax system that is biased towards part-time work.
In addition to the retirement age, the sharp drop-off in wages (30-40 percent) after age 60 discourages labor force participation.