June 29, 2023

Percentage of Women in Management Positions is only 12.9% in Japan

According to the White Paper on Gender Equality, 45% of Japan's employed population is female. However, the percentage of women in management positions is only 12.9%. The difference with foreign countries, where more than 30% are in the market, is evident.

From the viewpoint of whether men and women are both able to demonstrate their abilities in the workplace, Japan is behind as a developed country. In the World Economic Forum's 2023 Gender Gap Index, Japan ranked 125th, its lowest ever. The political sector is particularly sluggish, ranking 138th, and the economy is also adversely affected, ranking 123rd.

Under such circumstances, G7 Ministerial Meeting on Gender Equality and Women's Empowerment was organized in Nikko, Tochigi Prefecture this month and it issued a statement saying that achieving full and equal participation of all women in the labor market and economy is an "urgent issue." Japan should also accelerate its transformation.

The ratio of full-time employment for women in Japan peaks in their late 20s and declines from their 30s "L-shaped curve." They tend to have shorter tenure, which is directly related to lower postings and income. It affects not only women "now" but also their future in the form of low pensions.

In order for women to build careers, it is essential to review the unbalanced division of housework and childcare, which is conspicuously large among developed countries, as well as to change the workplace. It cuts into rigid, long working hours and promotes flexible work styles. It carefully inspects managers' awareness and workplace culture for any issues. It is required to promote the systematic training and recruitment of female human resources.

Many investors, both domestic and foreign, now have a policy against appointing leaders for companies that do not have female board members. The government has also decided to encourage TSE (Tokyo Stock Exchange) Prime-listed companies to increase the percentage of female executives to at least 30% by 2030.