Gender Wage Gap: Expedite Efforts to Improve Treatment of Non-regular Employees

Editorial

17:32 JST, December 16, 2024

There has been an increase in the number of working women, but many challenges also remain, such as the difficulty that those who left their jobs to raise children face in returning to work.

The government and companies should strive to create workplaces that can make the most of women’s desire to work.

In April, the government launched a project team to promote women’s active roles in society. It is said that the team will encourage companies to support a balance between work and family life and promote women to managerial positions, among other matters.

The Labor Standards Law stipulates that gender shall not be a basis for treating people differently regarding wages. However, many women leave the workforce to get married or raise children, thus their length of employment tends to be shorter than that of men. Therefore, the reality is that there are fewer women in managerial positions.

As a result of these circumstances, the wages earned by women in total are only 75% of those of men. The team will reportedly research the situation in the industries of finance and insurance, food manufacturing, and retail, which have large wage disparities between men and women, and discuss measures to tackle the issue.

Two years ago, the government made it mandatory for all major companies in Japan to disclose the wage difference between men and women. Subsequently, progress has been made in cultivating women for managerial positions and reviewing work styles. Small and midsize companies are urged to also take a close look at their in-house situations and strive to identify any issues that can be improved.

In Japan, the regular employment rate among women tends to peak when they are in the latter half of their 20s and then the figure declines, which is followed by an increase in the non-regular employment rate. This is probably because many women stop working as regular employees upon marriage or childbirth and then start working again, mainly as part-timers, after raising their children.

According to government statistics, women account for nearly 70% of those working in non-regular employment. The wages of non-regular workers are only two-thirds of those of regular employees.

First, it is important to improve the treatment of non-regular workers. Of the women who choose to work on a non-regular basis, some want to work as regular employees. It is also essential to establish a system that allows them to fulfill their wishes.

When women who have left the workplace return, there must be a great deal of anxiety because they have to adjust to new digital technologies and other challenges. The central and local governments should support such women in acquiring the necessary skills.

In urban areas, the wage gap between men and women is relatively small because of the high wage level of women of child-rearing age, but the gender disparities remain large in regional areas. Solving this situation is also necessary to stem the exodus of women from regional areas.

Japan is facing a low birth rate and aging population, and the labor shortage is becoming serious. It will be important for the central government and companies to create an environment in which it is comfortable for both men and women to work.

(From The Yomiuri Shimbun, Dec. 16, 2024)