Japan – what can we learn? - Construction Labour Research

The Japanese construction industry suffers from an increasing age ofthe total workforce. From 1990 to 2003, the share of workers youngerthan 25 decreased by 20%, whilst the share of workers of aged 50 orolder increased by 25%. One in two workers is at least 45 years old.Age 1990 1997 2000 200315-19 2.2 2.0 1.4 1.220-24 6.8 9.2 7.5 6.025-29 7.8 10.8 11.6 10.630-34 9.2 8.2 9.8 12.135-39 12.9 8.6 8.6 9.440-44 15.6 10.5 9.3 9.145-49 12.9 15.2 12.6 11.150-54 11.6 11.4 14.5 14.655-64 17.5 18.1 18.5 19.965 + 3.4 6.0 6.3 6.1Total 100 100 100 100Though this was not answered in the interviews, I think thatproductivity cannot be very high. There are lots of workers on site notworking in production itself but, for instance, organising transportcirculation. And I have often seen workers staying around doingnothing, while a small number of workers were digging etc. Thisseems to be the same either in building and construction.Taking investment per worker as a weak indication of productivity(without asking for working time), there has been a very sharpdeterioration in the last 15 years, when investment per worker droppedalmost constantly every year, by a third in total from 145 million Yenin 1990, when a total investment of more than 85 trillion Yen wasrealised with a total workforce of 588,000, to 93 million Yen in 2003,when a lower investment of only a bit more than 56 trillion Yen wasmade with 604,000 workers (different data following the sourcesused).In the interviews it was stated that wages do not differ very much.Neither the level of skills nor the market has a big influence. Thereseem to be two major reasons for different wages. First the size of thecompany is most important: the larger the company, the better theCLR News No 2/20069