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Japan’s ongoing efforts to implement four-day workweek to attract, retain workers

The country is grappling with a labor shortage exacerbated by a declining birthrate
Japan’s ongoing efforts to implement four-day workweek to attract, retain workers
Launched in 2021, the campaign encourages small businesses to adopt flexible work and offers free consulting and grants for support.

Japan, a nation known for its intense work culture, is grappling with a labor shortage exacerbated by a declining birthrate. In an effort to address this issue, the government is promoting four-day work weeks as part of a broader “work style reform” initiative. Launched in 2021, the campaign aims to encourage smaller businesses to adopt flexible working arrangements, alongside providing free consulting and grants to facilitate the transition.

Despite official backing, the uptake has been slow. Only about 8 percent of Japanese companies offer three or more days off per week, and only a handful have sought government advice on implementing these changes, AP reported citing Japan’s Ministry of Health, Labor and Welfare. A notable example is Panasonic, where only 150 out of 63,000 eligible employees have opted for a four-day work schedule. This reflects the deep-seated cultural pressures to conform and sacrifice for the company, often leading to long hours and unreported overtime, known as “service overtime.” The term “karoshi,” or death from overwork, highlights the severe consequences of this work ethic, with over 54 fatalities reported annually.

Read more: Japanese companies achieve record $244 billion in pretax profits during April-June

Benefits for workers

Proponents argue that shorter work weeks can help retain workers—particularly parents, caregivers, and retirees—by providing the flexibility they need. Companies like Fast Retailing and SMBC Nikko Securities have begun to adopt these models, signaling a potential shift in workplace norms. However, critics caution that employees on four-day schedules may still face the same workload for reduced pay, raising concerns about the effectiveness of the initiative.

Moreover, as Japan looks to the future, changing the entrenched mindset around work is seen as vital to maintaining a viable workforce. The challenge remains to create a culture that values work-life balance, allowing individuals to thrive both professionally and personally.

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