2023 All

STATISTICAL HANDBOOK OF
JAPAN
2023
© 2023 by Statistics Bureau
Ministry of Internal Affairs and Communications
Japan
All rights reserved.
Edited and Published by

Statistics Bureau
Ministry of Internal Affairs and Communications
Japan
19-1 Wakamatsu-cho, Shinjuku-ku
Tokyo 162-8668 Japan
Printed in Japan
ISSN 0081-4792
https://www.stat.go.jp/english/data/handbook/index.html
Preface
This handbook is designed to provide a clear and coherent

overview of present-day Japan through statistics.
It provides statistical tables, figures, maps and photographs to
portray conditions in modern-day Japan from a variety of
perspectives, including demographics, economic and social trends,
and culture. Most of the comments and statistical data for this
purpose have been drawn from principal statistical publications
available from government and other leading sources.
For more in-depth statistical information on Japan, readers are
invited to peruse the Japan Statistical Yearbook.
We hope that this handbook will serve as a guide in your search
for knowledge about Japan. We are always happy to receive
opinions or requests from readers.
You can also view the contents of this handbook on the website of
the Statistics Bureau.
September 2023
IWASA Tetsuya
Director-General
Statistics Bureau
Ministry of Internal Affairs
and Communications
Japan
Notes for Users
1. The present issue basically contains statistics that became available by April 30,
2023.
2. Unless otherwise indicated, "year" refers to the calendar year and "fiscal year"
refers to the 12 months beginning April 1 of the year stated.
3. Metric units are used in all tables and figures in which the data are measured in
weight, volume, length or area. Refer to Appendix 2 for conversion factors.
4. Unless otherwise indicated, amounts shown are in Japanese yen. Refer to
Appendix 3 for exchange rates of JPY per U.S. dollar.
5. Statistical figures may not add up to the totals due to rounding.
6. The following symbols are used in the tables:
･･･ Data not available
－ Magnitude zero or figures not applicable
0 or 0.0 Less than half of unit employed
＃ Marked break in series
＊ Provisional or estimate
7. Data relating to "China" generally exclude those for Hong Kong SAR, Macao
SAR and Taiwan.
8. All contents of the present issue, including tables, figures, and maps, are also
available on the website:
https://www.stat.go.jp/english/data/handbook/index.html
9. When any contents of the present issue are to be quoted or copied in other media
(print or electronic), the title is to be referred to as follows:
Source: Statistical Handbook of Japan 2023, Statistics Bureau, Ministry of
Internal Affairs and Communications, Japan.
10. "Statistics Bureau, MIC" in the tables and figures is an abbreviation of "Statistics
Bureau, Ministry of Internal Affairs and Communications, Japan".
Contents
Chapter 1 Land and Climate .......................................................................... 1

1. Land .............................................................................................................. 2
2. Climate .......................................................................................................... 4
Chapter 2 Population ....................................................................................... 7

1. Total Population ........................................................................................... 8
2. Households ................................................................................................. 10
(1) Household Size and Household Composition .................................... 10
(2) Elderly Households .............................................................................. 12
3. Declining Birth Rate and Aging Population ............................................. 13
4. Births and Deaths ....................................................................................... 15
5. Marriages and Divorces ............................................................................. 18
6. Population Density and Regional Distribution ......................................... 19
(1) Population Density ............................................................................... 19
(2) Population Distribution ........................................................................ 21
Chapter 3 Economy ........................................................................................ 22

1. Economic Development ............................................................................ 23
2. Bubble Economy and Its Collapse ............................................................ 24
3. Economic Trends after Collapse of the Bubble Economy ...................... 26
4. Industrial Structure ..................................................................................... 29
Chapter 4 Finance .......................................................................................... 34

1. National and Local Government Finance ................................................. 35
(1) National Government Finance ............................................................ 35
(2) Local Government Finance ................................................................. 38
(3) National and Local Government Finance ........................................... 40
(4) Tax ......................................................................................................... 43
2. Bank of Japan and Money Stock .............................................................. 44
3. Financial Institutions .................................................................................. 47
4. Financial Assets .......................................................................................... 49
5. Stock Market .............................................................................................. 50
Chapter 5 Agriculture, Forestry, and Fisheries ......................................... 53
1. Overview of Agriculture, Forestry, and Fisheries .................................... 54
2. Agriculture .................................................................................................. 55
(1) Agricultural Production ........................................................................ 55
(2) Agriculture Management Entity and Cultivated Land ....................... 56
3. Forestry ....................................................................................................... 58
4. Fisheries ...................................................................................................... 60
(1) Fishery Production ............................................................................... 60
(2) Fishery Workers ................................................................................... 61
5. Self-Sufficiency in Food ............................................................................ 62
Chapter 6 Manufacturing and Construction ............................................. 65

1. Overview of the Manufacturing Sector .................................................... 66
2. Principal Industries in the Manufacturing Sector ..................................... 69
(1) Machinery Industry .............................................................................. 69
(2) Chemical Industry ................................................................................ 71
(3) Iron and Steel Industry ......................................................................... 72
(4) Fabricated Metals Industry .................................................................. 72
3. Construction ............................................................................................... 73
Chapter 7 Energy ............................................................................................ 76

1. Supply and Demand .................................................................................. 77
2. Electric Power ............................................................................................ 82
3. Gas .............................................................................................................. 83
Chapter 8 Science and Technology/Information and Communication .. 84

1. Science and Technology ............................................................................ 85
(1) Researchers and R&D Expenditures .................................................. 85
(2) Technology Balance of Payments (Technology Trade) ..................... 87
2. Patents ......................................................................................................... 89
3. Information and Communication .............................................................. 91
(1) Diffusion of the Internet ....................................................................... 91
(2) Progress of Communication Technologies ......................................... 93
(3) Telephones ............................................................................................ 94
(4) Postal Service ....................................................................................... 95
Chapter 9 Transport ....................................................................................... 96
1. Domestic Transport .................................................................................... 97
(1) Domestic Passenger Transport ............................................................ 98
(2) Domestic Freight Transport ................................................................. 99
2. International Transport ............................................................................. 100
(1) International Passenger Transport ..................................................... 100
(2) International Freight Transport .......................................................... 103
Chapter 10 Commerce ................................................................................. 104

1. Wholesale and Retail ............................................................................... 105
(1) Wholesale Trade ................................................................................. 105
(2) Retail Trade ......................................................................................... 106
2. Eating and Drinking Places ..................................................................... 106
Chapter 11 Trade, International Balance of Payments, and

International Cooperation ......................................................................... 107
1. Trade ......................................................................................................... 108
(1) Overview of Trade ............................................................................. 108
(2) Trade by Commodity ......................................................................... 109
(3) Trade by Country/Region .................................................................. 113
2. International Balance of Payments ......................................................... 116
3. International Cooperation ........................................................................ 118
Chapter 12 Labour ....................................................................................... 123

1. Labour Force ............................................................................................ 124
2. Employment ............................................................................................. 126
(1) Employment by Industry ................................................................... 127
(2) Employment by Occupation .............................................................. 129
(3) Employment by Employment Pattern .............................................. 130
3. Unemployment ......................................................................................... 133
4. Hours Worked and Cash Earnings .......................................................... 135
Chapter 13 Family Budgets and Prices ..................................................... 138

1. Family Budgets ........................................................................................ 139
(1) Income and Expenditure .................................................................... 139
(2) Savings and Debts .............................................................................. 145
(3) Internet Shopping by Households ..................................................... 147
(4) Electronic Money ............................................................................... 149
2. Prices ......................................................................................................... 150
(1) Consumer Price Index (CPI) ............................................................. 151
(2) Corporate Goods and Services Producer Price Indices ................... 152
Chapter 14 Environment and Life ............................................................. 154

1. Environmental Issues ............................................................................... 155
2. Housing ..................................................................................................... 158
3. Traffic Accidents ...................................................................................... 161
4. Crime ........................................................................................................ 162
Chapter 15 Social Security, Health Care, and Public Hygiene .............. 164
1. Social Security .......................................................................................... 165
2. Health Care and Public Hygiene ............................................................. 168
Chapter 16 Education and Culture ........................................................... 173

1. School-Based Education .......................................................................... 174
2. Lifelong Learning .................................................................................... 178
3. Leisure Activities ..................................................................................... 179
4. Publishing and Mass Media .................................................................... 180
5. Cultural Assets ......................................................................................... 184
Chapter 17 Government System ................................................................ 188

1. Separation of Powers ............................................................................... 189
2. Legislative Branch ................................................................................... 191
3. Executive Branch ..................................................................................... 192
4. Judicial Branch ......................................................................................... 193
5. Local Governments .................................................................................. 194
Appendices
1. Population, Surface Area, and Population Density by Prefecture ......... 196
2. Conversion Factors .................................................................................. 197
3. Foreign Exchange Rates .......................................................................... 197
List of Tables
1.1 Surface Area of Japan .........................................................................2

1.2 Top 10 Countries According to Surface Area ....................................2
1.3 Mountains ............................................................................................3
1.4 Rivers ...................................................................................................3
1.5 Lakes ....................................................................................................3
1.6 Surface Area by Use ...........................................................................4
1.7 Temperature and Precipitation (Normal value) .................................6
2.1 Countries with a Large Population .....................................................8

2.2 Trends in Population ........................................................................ 10
2.3 Households and Household Members ............................................ 12
2.4 Trends in Elderly Households ......................................................... 12
2.5 Age Structure of Population by Country ........................................ 14
2.6 Vital Statistics ................................................................................... 16
2.7 Changes of Mothers' Age at Childbirth .......................................... 17
2.8 Mean Age of First Marriage ............................................................ 18
2.9 Proportion of Never Married at Exact Age 50 by Sex ................... 18
2.10 Population of Major Cities .............................................................. 21
2.11 Population of 3 Major Metropolitan Areas ..................................... 21
3.1 Gross Domestic Product (Expenditure approach) .......................... 27

3.2 Changes in Industrial Structure ....................................................... 29
3.3 Gross Domestic Product by Type of Economic Activity ............... 30
3.4 Number of Establishments and Persons Engaged .......................... 32
3.5 Trends of Overseas Affiliated Company
(Manufacturing industries) .............................................................. 33
4.1 Expenditures of General Account ................................................... 37

4.2 Local Government Finance (Ordinary accounts) ........................... 39
4.3 Expenditures of National and Local Governments
(Initial budget) ................................................................................. 40
4.4 Currency in Circulation (Outstanding at year-end) ........................ 45
4.5 Money Stock (Average amounts outstanding) ............................... 45
4.6 Financial Markets (Interest rates, etc.) ............................................ 46
4.7 Financial Assets and Liabilities of Japan ........................................ 49
4.8 Stock Prices (Tokyo Stock Exchange) ............................................ 51
5.1 Total Agricultural Output ................................................................. 55

5.2 Agricultural Harvest ......................................................................... 56
5.3 Number of Agriculture Management Entities ................................ 57
5.4 Forest Land Area and Forest Resources ......................................... 58
5.5 Production by Fishery Type and Major Kinds of Fish ................... 61
5.6 Enterprises and Workers Engaged in the Marine Fishery
/Aquaculture Industry ...................................................................... 62
5.7 Domestic Production, Supplies for Domestic Consumption,
Food Self-Sufficiency Ratio, and Imports ..................................... 63
6.1 Establishments, Persons Engaged, and Value of

Manufactured Goods Shipments of the Manufacturing Industry ... 67
6.2 Indices on Mining and Manufacturing ........................................... 68
6.3 Construction Investment (Nominal prices) .................................... 74
6.4 Building Construction Started by Types of Investor,
Dwellings and Industries, and Structure ......................................... 75
7.1 Trends in Domestic Supply of Primary Energy and Percentage

by Energy Source ............................................................................ 79
7.2 Trends in Electricity Output and Power Consumption .................. 82
7.3 Trends in Production and Purchases, and Sales of Gas ................. 83
8.1 Trends in Researches and Expenditures on R&D .......................... 85

8.2 Technology Trade by Business Enterprises .................................... 88
8.3 Patents ............................................................................................... 89
8.4 PCT International Applications by Country ................................... 90
8.5 Status of Internet Use by Device by Age Group ............................ 92
8.6 Subscribers to Telecommunications Services ................................ 93
8.7 Postal Services .................................................................................. 95
9.1 Domestic Passenger Transport ........................................................ 98

9.2 Domestic Freight Transport ............................................................. 99
9.3 Japanese Overseas Travelers by Destination ................................ 101
9.4 Foreign Visitors .............................................................................. 102
9.5 Seaborne Foreign Transport .......................................................... 103
10.1 Establishments and Persons Engaged
in the Wholesale and Retail Sector .............................................. 105
10.2 Eating and Drinking Places .......................................................... 106
11.1 Trends in Foreign Trade and Indices of Trade ............................. 109

11.2 Value of Exports and Imports by Principal Commodity ..............111
11.3 Trends in Value of Exports and Imports by Country/Region ..... 113
11.4 International Balance of Payments ............................................... 116
11.5 Trends in Japan's International Investment Position ................... 117
11.6 Reserve Assets ............................................................................... 117
11.7 Financial Flows to Developing Countries .................................... 119
11.8 Regional Distribution of Bilateral ODA ...................................... 121
11.9 Number of Persons Involved in Technical Cooperation
by Type .......................................................................................... 122
12.1 Population by Labour Force Status .............................................. 125

12.2 Employment by Industry .............................................................. 128
12.3 Employment by Occupation ......................................................... 130
12.4 Employment by Employment Pattern .......................................... 131
12.5 Hours Worked and Cash Earnings (Monthly average) ............... 136
13.1 Average Monthly Income and Expenditures per Household

(Workers' households) .................................................................. 140
13.2 Average Monthly Consumption Expenditures per Household
by Age Group (One-person households) ..................................... 145
13.3 Average Amount of Savings and Debts
(Workers' households) .................................................................. 146
13.4 Amount of Savings and Debts by Age Group
of Household Head (Workers' households) ................................. 146
13.5 CPI for Major Categories of Goods and Services ....................... 151
13.6 Corporate Goods and Services Producer Price Indices ............... 153
14.1 Breakdown of Carbon Dioxide Emissions .................................. 155

14.2 Waste Generation and Disposal .................................................... 157
14.3 Housing Conditions ....................................................................... 160
14.4 Occupied Dwellings by Type of Building ................................... 160
14.5 Ratio of Barrier-Free Houses with Elderly Members ................... 161
14.6 Traffic Accidents and Casualties .................................................. 162
14.7 Trends in Crime (Penal code offenses) ........................................ 163
15.1 Trends in Social Security Benefit Expenditures
by Functional Category ................................................................ 166
15.2 Medical Personnel at Work ........................................................... 170
15.3 Medical Care Institutions and Beds ............................................. 171
16.1 Educational Institutions in Japan .................................................. 174

16.2 Number of University Students .................................................... 176
16.3 Social Education Facilities and Users .......................................... 178
16.4 Major Leisure Activities by Sex
(Aged 10 years old and over) ....................................................... 179
16.5 Number of New Book Titles Published ....................................... 181
16.6 Advertising Expenditures by Medium ......................................... 183
16.7 Cultural Properties Designated by the National Government .... 184
16.8 Heritage Sites Inscribed on the World Heritage List ................... 186
17.1 Diet Members by Political Group ................................................ 192

17.2 Successive Prime Ministers .......................................................... 193
17.3 Judicial Cases Newly Commenced, Terminated or Pending
(All courts) ..................................................................................... 194
List of Figures
1.1 Famous Mountains of the World ........................................................3

1.2 Temperature and Precipitation (Normal value) .................................5
2.1 Population Pyramid .............................................................................8

2.2 Population Density by Country or Area ............................................9
2.3 Changes in Household Composition ...............................................11
2.4 Changes in the Population Pyramid ................................................ 13
2.5 Proportion of Elderly Population by Country
(Aged 65 years old and over) .......................................................... 14
2.6 Natural Population Change ............................................................. 15
2.7 Life Expectancy at Birth by Country .............................................. 17
2.8 Changes in Marriage Rate and Divorce Rate ................................. 19
2.9 Population Density by Prefecture ................................................... 20
3.1 Economic Growth Rates .................................................................. 23
3.2 National Wealth ................................................................................ 25
3.3 Gross Domestic Product
(Nominal prices, converted into U.S. dollars) ............................... 26
3.4 Economic Growth Rates (Quarterly changes) ............................... 28
3.5 Shares of Establishments and Persons Engaged
by Scale of Operation ...................................................................... 31
4.1 Revenue and Expenditure in the General Account ........................ 36

4.2 Composition of Revenue and Expenditure of
General Account Budget (Initial budget) ........................................ 38
4.3 Ratio of Net Total National and Local Expenditures by Function .. 41
4.4 National Government Bond Issue and Bond Dependency Ratio .. 42
4.5 Ratio of General Government Gross Debt to GDP ........................ 43
4.6 Ratio of Taxation Burden to National Income by Country
(Actual basis) ................................................................................... 44
4.7 Assets of Domestically Licensed Banks
(Banking accounts, end of year) ..................................................... 48
4.8 Stock Price Index and Market Capitalization
(Tokyo Stock Exchange, end of year) ............................................ 50
5.1 Number of Employed Persons and

Percentage of Gross Domestic Product (Nominal prices) for
Agriculture, Forestry, and Fisheries ................................................ 54
5.2 Wood Supply and Self-Sufficiency Rate ........................................ 59
5.3 Production by Type of Fishery ........................................................ 60
5.4 Trends in Food Self-Sufficiency Ratio of Major Countries
(On calorie supply basis) ................................................................. 64
6.1 Trends in Indices on Mining and Manufacturing ........................... 69
7.1 Domestic Supply of Primary Energy by Energy Source ............... 78

7.2 International Comparison of Energy Consumption/GDP .............. 79
7.3 Trends in Final Energy Consumption and Real GDP .................... 80
7.4 Trends in Final Energy Consumption by Sector ............................ 81
7.5 Final Energy Consumption by Country .......................................... 81
8.1 Researchers and Expenditures by Industry

(Business enterprises) ...................................................................... 87
8.2 Composition of Technology Trade by Major Country .................. 89
8.3 Changes in Patent Applications with Major Offices
by Japanese Applicants ................................................................... 91
8.4 Trends in Internet Usage Rate by Age Group ................................ 92
8.5 International Comparison of Fixed-Broadband Subscribers ......... 94
8.6 Telephone Service Subscribers ........................................................ 95
9.1 Composition of Domestic Transport ............................................... 97

9.2 Japanese Overseas Travelers and Foreign Visitor Arrivals .......... 100
11.1 Foreign Trade .................................................................................. 108

11.2 Component Ratios of Foreign Trade by Commodity .................. 110
11.3 Component Ratios of the Value of Major Export
and Import Commodities by Country/Region .............................. 112
11.4 Trends in Value of Exports and Imports by Country/Region ...... 115
11.5 Yen Exchange Rate against the U.S. Dollar ................................. 118
11.6 Trends in ODA by Country ........................................................... 120
11.7 Distribution of Bilateral ODA by Sector ...................................... 121
12.1 Labour Force Participation Rate by Gender and Age Group ...... 126
12.2 Structure of Employment by Country ........................................... 127
12.3 Distribution of Employment by Industry ...................................... 129
12.4 Employment Pattern by Gender and Age Group ......................... 131
12.5 Unemployment Rate and Active Job Openings-to-Applicants
Ratio ................................................................................................ 133
12.6 Unemployment Rates by Gender and Age Group ....................... 134
12.7 Unemployment Rates by Country ................................................ 135
12.8 Monthly Scheduled Cash Earnings by Size of Enterprise,
Gender, and Age Group ................................................................. 137
13.1 Average Monthly Consumption Expenditures per Household

(Two-or-more-person households) ............................................... 139
13.2 Balance of Income and Expenditures
(Monthly average per household, workers' households) ............ 141
13.3 Year-on-Year Change in Average Monthly Income and
Consumption Expenditures per Household
(Workers' households) ................................................................... 142
13.4 Average Monthly Family Income and Consumption
Expenditures per Household by Age Group of Household Head
(Workers' households) ................................................................... 143
13.5 Average Monthly Income and Expenditures per Household
(Non-working elderly households) .............................................. 144
13.6 Proportion of Households Ordered over the Internet
13.7 Ratio of Expenditure on Goods and Services Ordered
over the Internet (Two-or-more-person households) .................. 148
13.8 Trends in Ownership and Utilization of Electronic Money
13.9 Price Trends (Percent change from previous year) ...................... 151
13.10 Regional Difference Index of Consumer Prices
by Selected Prefectures ................................................................. 152
14.1 Sources of Carbon Dioxide Emissions ........................................ 156

14.2 Recycling of Nonindustrial Waste ................................................ 158
14.3 Trends in Dwellings, Vacant Dwellings, and Vacancy Rate ....... 159
15.1 Trends in Social Security Benefit Expenditures by Sector ......... 167

15.2 National Contribution Ratio by Country ..................................... 168
15.3 Death Rates by Major Cause ........................................................ 169
15.4 Trends in Medical Care Expenditures .......................................... 172
16.1 Japanese School System ............................................................... 175

16.2 University Students by Field of Study ......................................... 176
16.3 Public Expenditures on Education ............................................... 177
16.4 Participation Rates for Major "Sports" by Age Group ................ 180
16.5 Trends in the Size of the Electronic Publication Market ............. 181
16.6 Trends in the Circulation of Newspaper ...................................... 182
17.1 Separation of Powers under the Constitution of Japan ............... 189

17.2 Government Organization ............................................................ 190
17.3 Government System by Level ...................................................... 195
17.4 Local Government Employees by Type of
Administrative Services ................................................................ 195
Photo Sources
Cover photo .......TSUCHIYA Yoshitaka; The Month of Photography, Tokyo
2018
Chapter 1............Statistics Bureau, MIC
Chapter 2............WATANABE Noburo; The Photographic Society of Japan
Chapter 3............YAMADA Toshiya; The Month of Photography, Tokyo 2023
Chapter 4............KAWANO Katsushige; The Photographic Society of Japan
Chapter 5............KATO Masami; The Photographic Society of Japan
Chapter 6............TAZAKI Ryuichi; The Photographic Society of Japan
Chapter 7............SUZUKI Michio; The Month of Photography, Tokyo 2020
Chapter 8............WATANABE Noburo; The Photographic Society of Japan
Chapter 9............FUKUDA Kazuo; The Month of Photography, Tokyo 2020
Chapter 10..........SHOJI Seiichi; The Month of Photography, Tokyo 2023
Chapter 11..........Statistics Bureau, MIC
Chapter 12..........FUKUSHIMA Hidekazu; The Month of Photography, Tokyo
2023
Chapter 13 ......... KAMIKURA Tomoko; The Photographic Society of Japan
Chapter 14..........KASAHARA Toshikazu; The Month of Photography, Tokyo
2023
Chapter 15..........FUNAYAMA Toshihiro; The Month of Photography, Tokyo
2022
Chapter 16..........KOYAMA Chieko; The Month of Photography, Tokyo 2023
Chapter 17..........AIDA Katsuhito; The Month of Photography, Tokyo 2023
Cover photo: Mt. Fuji

Mt. Fuji covered with clouds like a hat. There is a saying, "When Mt. Fuji
wears a hat, it will soon rain." Mt. Fuji is the highest peak in Japan, with an
elevation of 3,776 meters. In June 2013, it was registered as a World
Cultural Heritage Site, making it the 17th World Heritage Site in Japan.
“Statistical Handbook of Japan 2023” by Statistics Bureau, Japan
Chapter 1
Land and Climate
© Statistics Bureau, MIC
Japan has four seasons, and beautiful natural scenes can be enjoyed in spring,
summer, fall, and winter. Spring is a season of blossoms, with all sorts of flowers
blooming here and there in each town. A typical example is the "cherry blossom." All
over Japan, spots for cherry blossom viewing are crowded with sightseers.
CHAPTER 1 LAND AND CLIMATE
1. Land
Japan is an island country situated off the eastern seaboard of the Eurasian
continent in the northern hemisphere. The islands form a crescent-shaped
archipelago stretching from northeast to southwest parallel to the
continental coastline with the Sea of Japan in between. The land is located
between approximately 20 to 45 degrees north latitude and between
approximately 123 to 154 degrees east longitude. It consists of the main
islands of Hokkaido, Honshu, Shikoku, Kyushu and Okinawa, and more
than 14,000 smaller islands of various sizes. Its surface area totals 377,974
square kilometers.
Since the Japanese archipelago is located in the world's newest mobile belt,
it is particularly prone to various geological phenomena. Therefore, the
number of earthquakes in the country is quite high, and so is the proportion
of active volcanoes. The land is full of undulations, with mountainous
regions including hilly terrain accounting for about three-quarters of its
total area. The mountains are generally steep and are intricately carved out
by ravines. Hilly terrain extends between the mountainous regions and the
plains.
Table 1.1 Table 1.2

Surface Area of Japan (2023) Top 10 Countries According
(Square kilometers) to Surface Area (2021) 1)
District Area (1,000 square kilometers)
Japan ........................ 377,974 Country Area
Honshu ................... 231,235 2)
World ........................ 130,094
Hokkaido ................ 83,424 Russia ........................ 17,098
Kyushu .................... 42,230
Canada ....................... 9,985
Shikoku ................... 18,803
Okinawa .................. 2,282 U.S.A. ........................ 9,834
China .......................... 9,600
Source: Geospatial Information
Brazil ......................... 8,510
Authority of Japan.
Australia ..................... 7,692
India ........................... 3,287
Argentina ................... 2,796
Kazakhstan ................. 2,725
Algeria ....................... 2,382
1) Comprising land area and inland
waters. Excluding polar regions and
uninhabited islands. 2) Land area only.
Source: United Nations.
2
Figure 1.1 Table 1.3

Famous Mountains of the World Mountains (As of February, 2022)
(Meters)
m Name Height
10,000
Mt. Fuji .......................... 3,776
Mt. Kitadake .................. 3,193
Mt. Ainodake ................. 3,190
9,000
Mt. Oku-Hotaka ............. 3,190
Mt. Yarigatake ............... 3,180
Mt. Higashidake ............. 3,141
Mt. Akaishi .................... 3,121
8,848
Mt. Karasawa ................. 3,110
8,000
Mt. Kita-Hotaka ............. 3,106
Mt. Everest
(Asia)
Mt. Obami ...................... 3,101
7,000 Authority of Japan.
Mt. Aconcagua
(S. America) Table 1.4
6,961
Rivers (As of April, 2022)
(Kilometers)
6,000
5,895 Name Length
6,190
Shinano River ................. 367
Mt. Kilimanjaro Tone River ..................... 322
(Africa) Mt. Denali Ishikari River .................. 268
5,000
(N. America) Teshio River ................... 256
Kitakami River ............... 249
4,810 Abukuma River .............. 239
Kiso River ...................... 229
4,000 Mont Blanc Mogami River ................ 229
(Europe) Tenryu River .................. 213
3,776 Agano River ................... 210
Source: Ministry of Land, Infra-
3,000 Mt. Fuji
(Japan) structure, Transport and Tourism.
Table 1.5
Lakes (As of January, 2023)
2,000 (Square kilometers)
Name Area
Lake Biwa ...................... 669.3
Lake Kasumigaura .......... 168.2
1,000 Lake Saroma .................. 151.6
Lake Inawashiro ............. 103.2
Lake Nakaumi ................ 85.7
Lake Kussharo ............... 79.5
0 Lake Shinji ..................... 79.3
Lake Shikotsu ................ 78.5
Source: National Astronomical Observatory Lake Toya ...................... 70.7
of Japan. Lake Hamana ................. 64.9
Authority of Japan.
3
As of 2019, forestland and fields account for the largest portion of the
nation's surface area. There are 25.38 million hectares of forestland and
fields (which equates to 67.1 percent of the nation's surface area), followed
by 4.40 million hectares of farmland (11.6 percent) combined. Together,
forestland, fields and farmland thus cover approximately 80 percent of the
nation. There are 1.97 million hectares of developed land (5.2 percent).
Table 1.6
Surface Area by Use
(million hectares)
Forestland Inland 1) Developed
Year Total Farmland Roads Others
and fields water land 2)
1980 37.77 25.68 5.59 1.31 0.99 1.39 2.81
1990 37.77 25.52 5.33 1.31 1.14 1.60 2.87
2000 37.79 25.38 4.91 1.35 1.27 1.79 3.09
2010 37.79 25.35 4.67 1.33 1.36 1.90 3.19
2019 37.80 # 25.38 # 4.40 1.35 1.41 # 1.97 3.30
Percentage distribution (%)
2019 100.0 67.1 11.6 3.6 3.7 5.2 8.7
1) Including farm roads and forest roads, etc. 2) Such as residential and industrial land.
Source: Ministry of Land, Infrastructure, Transport and Tourism.
2. Climate
Although the Japanese archipelago has a temperate marine climate, it
differs by region depending on the effects of seasonal winds and ocean
currents. Due to the topography of Honshu featuring a series of mountain
ranges running from north to south, the northwest monsoon in the winter
brings humid conditions with heavy precipitation (snow) to the Sea of
Japan side of Honshu but comparatively dry weather with low
precipitation to the Pacific Ocean side. In the summer, the southeast
monsoon brings high temperatures and low rainfall on the Sea of Japan
side, and high temperatures and high humidity on the Pacific Ocean side.
Another unique characteristic of Japan's climate is that it has two long
spells of rainy seasons, one in early summer when the southeast monsoon
begins to blow, and the other in autumn when the winds cease. From
summer to autumn, tropical cyclones generated in the Pacific Ocean to the
south develop into typhoons and hit Japan, sometimes causing storm and
flood damage. In recent years, intense torrential rains exceeding previous
expectations have caused localized damage.
4
Figure 1.2
Temperature and Precipitation (Normal value)
(1991-2020 average)
C° Sapporo mm
25.0 300
20.0
15.0 200
C° Kanazawa mm
10.0
30.0 400
5.0 100
300 0.0
20.0
200 -5.0 0
1 2 3 4 5 6 7 8 9 10 11 12
10.0
100
0.0 0
1 2 3 4 5 6 7 8 9 10 11 12
HOKKAIDO
Temperature Precipitation
C° Kagoshima mm (left scale) (right scale)
30.0 600
500
HONSHU C° Tokyo mm
20.0 400
300 30.0 300
10.0 200
100 20.0 200
0.0 0
1 2 3 4 5 6 7 8 9 10 11 12 10.0 100
KYUSHU
0.0 0
SHIKOKU 1 2 3 4 5 6 7 8 9 10 11 12
C° Kyoto mm
30.0 300
OKINAWA
C° Takamatsu mm
20.0 200
30.0 300
Naha 10.0 100

C° mm 20.0 200
30.0 300
0.0 0
10.0 100 1 2 3 4 5 6 7 8 9 10 11 12
20.0 200
0.0 0
10.0 100 1 2 3 4 5 6 7 8 9 10 11 12
0.0 0
1 2 3 4 5 6 7 8 9 10 11 12
Source: Japan Meteorological Agency.
5
Table 1.7
Temperature and Precipitation (Normal value) (1991-2020 average)
Temperature (℃) Precipitation (mm)
Observing
Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Annual 1)
station
High -0.4 0.4 4.5 11.7 17.9 21.8 25.4 26.4 22.8 16.4 8.7 2.0 13.1
Temp.
Sapporo Low -6.4 -6.2 -2.4 3.4 9.0 13.4 17.9 19.1 14.8 8.0 1.6 -4.0 5.7
Prec. 108 92 78 55 56 60 91 127 142 110 114 115 1,146
High 9.8 10.9 14.2 19.4 23.6 26.1 29.9 31.3 27.5 22.0 16.7 12.0 20.3
Temp.
Tokyo Low 1.2 2.1 5.0 9.8 14.6 18.5 22.4 23.5 20.3 14.8 8.8 3.8 12.1
Prec. 60 57 116 134 140 168 156 155 225 235 96 58 1,598
High 7.1 7.8 11.6 17.3 22.3 25.6 29.5 31.3 27.2 21.8 15.9 10.2 19.0
Temp.
Kanazawa Low 1.2 1.0 3.4 8.2 13.6 18.4 22.9 24.1 19.9 13.9 8.1 3.5 11.5
Prec. 256 163 157 144 138 170 233 179 232 177 251 301 2,402
High 9.1 10.0 14.1 20.1 25.1 28.1 32.0 33.7 29.2 23.4 17.3 11.6 21.1
Temp.
Kyoto Low 1.5 1.6 4.3 9.2 14.5 19.2 23.6 24.7 20.7 14.4 8.4 3.5 12.1
Prec. 53 65 106 117 151 200 224 154 179 143 74 57 1,523
High 9.7 10.5 14.1 19.8 24.8 27.5 31.7 33.0 28.8 23.2 17.5 12.1 21.1
Temp.
Takamatsu Low 2.1 2.2 5.0 9.9 15.1 19.8 24.1 25.1 21.2 15.1 9.1 4.3 12.8
Prec. 39 46 81 75 101 153 160 106 167 120 55 47 1,150
High 13.1 14.6 17.5 21.8 25.5 27.5 31.9 32.7 30.2 25.8 20.6 15.3 23.1
Temp.
Kagoshima Low 4.9 5.8 8.7 12.9 17.3 21.3 25.3 26.0 23.2 18.0 12.2 6.9 15.2
Prec. 78 113 161 195 205 570 365 224 223 105 103 93 2,435
High 19.8 20.2 21.9 24.3 27.0 29.8 31.9 31.8 30.6 28.1 25.0 21.5 26.0
Temp.
Naha Low 14.9 15.1 16.7 19.1 22.1 25.2 27.0 26.8 25.8 23.5 20.4 16.8 21.1
Prec. 102 115 143 161 245 284 188 240 275 179 119 110 2,161
1) Annual average for temperature and annual total for precipitation.
Source: Japan Meteorological Agency.
6
Chapter 2
Population
© WATANABE Noburo
People and carp streamers.

On Children's Day (May 5), there is a custom of flying carp streamers to wish for a
good future for children.
CHAPTER 2 POPULATION
1. Total Population
Japan's total population in 2022 was 124.95 million. This ranked 11th in
the world and made up 1.6 percent of the world's total. Japan's population
density measured 338.2 persons per square kilometer in 2020, ranking 12th
among countries or areas with a population of 10 million or more.
Figure 2.1
Population Pyramid
Age 83 years: Birth rate declined in 1938-39

due to the Sino-Japanese Incident.
100
100
and over
Males Females
90 76 and 77 years: Birth rate declined
around the end of World War Ⅱ.
80
73 to 75 years: Born in the first
70 "baby boom" period (1947-49).
60
56 years: Born in 1966, "the year of
Hinoeuma" (turns around every 60
2022 50
years). Superstition says girls born in
this year bring bad luck.
40
48 to 51 years: Born in the second
30 "baby boom" period (1971-74).
20
1935 10
0
1,200 800 400 0 0 400 800 1,200
Thousands
Source: Statistics Bureau, MIC.
Table 2.1
Countries with a Large Population (2022)
(Millions)
Country Population Country Population
World ................................ 7,975 Nigeria ............................. 219
China ............................. 1,426 Brazil ............................... 215
India ............................... 1,417 Bangladesh ...................... 171
U.S.A. ............................ 338 Russia .............................. 145
Indonesia ....................... 276 Mexico ............................ 128
Pakistan ......................... 236 Japan ................................ 125
Source: Statistics Bureau, MIC; United Nations.
8
Figure 2.2
Population Density by Country or Area 1) (2020)
Bangladesh 1286.2
Taiwan 672.7
Rwanda 543.0
Korea, Rep. of 524.0
Netherlands 517.8
Burundi 470.9
India 469.7
Haiti 410.1
Belgium 381.9 = 50 persons

(per square kilometer)
Philippines 374.0
Sri Lanka 346.3
Japan 338.2
Viet Nam 308.4
Pakistan 294.7
U.K. 276.3
1) Top 15 countries or areas with a population of 10 million or more.

Source: Statistics Bureau, MIC; United Nations.
From the 18th century through the first half of the 19th century, Japan's
population remained steady at about 30 million. Following the Meiji
Restoration in 1868, it began expanding in tandem with the drive to build a
modern nation-state. In 1912, it reached 50 million, and in 1967, it
surpassed the 100 million mark. However, Japan's population growth
slowed afterward, with the rate of population change about 1 percent from
the 1960s through the 1970s. Since the 1980s, it has declined sharply.
Japan's total population was 126.15 million according to the Population
Census in 2020. The Population Census in 2015 marked the first decline in
Japan's total population since the initiation of the Census in 1920. The
decline continued in the Population Census in 2020, with a decrease of
948.6 thousand people compared to the previous Census (2015). In 2022, it
was 124.95 million, down by 0.56 million from the year before.
9
Table 2.2
Trends in Population (as of October 1)
Age composition (%) 1) Change rate
Population
Population 0-14 65 years of annual
Year density
(1,000) years 15-64 old and basis 2
(per km )
old over (%)
1872 2) 34,806 ... ... ... ... 91
2) 0.83 115
1900 43,847 33.9 60.7 5.4
2) 1.16 129
1910 49,184 36.0 58.8 5.2
1920 55,963 36.5 58.3 5.3 1.30 147
1930 64,450 36.6 58.7 4.8 1.42 169
1940 71,933 36.7 58.5 4.8 1.10 188
1950 84,115 35.4 59.6 4.9 1.58 226
1955 90,077 33.4 61.2 5.3 1.38 242
1960 94,302 30.2 64.1 5.7 0.92 253
1965 99,209 25.7 68.0 6.3 1.02 267
1970 104,665 24.0 68.9 7.1 1.08 281
1975 111,940 24.3 67.7 7.9 1.35 300
1980 117,060 23.5 67.4 9.1 0.90 314
1985 121,049 21.5 68.2 10.3 0.67 325
1990 123,611 18.2 69.7 12.1 0.42 332
1995 125,570 16.0 69.5 14.6 0.31 337
2000 126,926 14.6 68.1 17.4 0.21 340
2005 127,768 13.8 66.1 20.2 0.13 343
2010 128,057 13.2 63.8 23.0 0.05 343
2015 127,095 12.6 60.9 26.6 -0.15 341
2020 126,146 11.9 59.5 28.6 -0.15 338
2021 125,502 11.8 59.4 28.9 -0.51 336
2022 124,947 11.6 59.4 29.0 -0.44 335
(Projection, 2023)
2030 120,116 10.3 58.9 30.8 -0.49 322
2040 112,837 10.1 55.1 34.8 -0.62 303
2050 104,686 9.9 52.9 37.1 -0.75 281
2060 96,148 9.3 52.8 37.9 -0.85 258
2070 86,996 9.2 52.1 38.7 -1.00 233
1) The ratios for 2015 and 2020 were calculated using imputation values for
unknowns. The ratios for 2010 and earlier were calculated by excluding unknowns
from the denominator. 2) As of January 1.
Source: Statistics Bureau, MIC; National Institute of Population and Social
Security Research; Geospatial Information Authority of Japan.
2. Households
(1) Household Size and Household Composition
The Population Census shows that Japan had 55.70 million private
households (excluding "institutional households" such as students in
school dormitories) in 2020. Of that total, 54.2 percent were
10
nuclear-family households, and 38.1 percent were one-person households.
Figure 2.3
Changes in Household Composition
%
0 20 40 60 80 100
2005 29.5 57.7 12.8
2010 32.4 56.4 11.1
2015 34.6 55.9 9.4
2020 38.1 54.2 7.7

▲ ▲ ▲
One-person households Nuclear-family households Others
From the 1920s to the mid-1950s, the average number of household

members remained about 5. However, due to the increase in one-person
households and nuclear-family households since the 1960s, the average
size of households was down significantly in 1970, to 3.41 members. The
number of household members has continued to decline, dropping to 2.21
in 2020. Although the Japanese population shifted into the declining phase,
the number of households is expected to continue to increase for some
years to come, as the size of the average household will shrink at a slow
pace. The number of households is projected to peak in 2023 and then
decrease thereafter.
11
Table 2.3
Households and Household Members 1)
Private Private
Members Population
house- Rate of household Rate of
Year per
holds private househods members population
household (1,000)
(1,000) change (%) 2) (1,000) change (%) 2)
1960 22,539 … 93,419 4.14 94,302 4.7
1970 30,297 a) 15.9 103,351 3.41 104,665 5.5
1975 33,596 10.9 110,338 3.28 111,940 7.0
1980 35,824 6.6 115,451 3.22 117,060 4.6
1985 37,980 6.0 119,334 3.14 121,049 3.4
1990 40,670 7.1 121,545 2.99 123,611 2.1
1995 43,900 7.9 123,646 2.82 125,570 1.6
2000 46,782 6.6 124,725 2.67 126,926 1.1
2005 49,063 4.9 124,973 2.55 127,768 0.7
2010 51,842 5.7 125,546 2.42 128,057 0.2
2015 53,332 2.9 124,296 2.33 127,095 -0.8
2020 55,705 4.4 123,163 2.21 126,146 -0.7
1) In the 1965 Census, the definition of household differs, and it is not possible to recombine
the survey subjects into private households.
2) Change over preceding Population Census.
a) The rate of change over 10 years is converted to a rate of change over 5 years.
(2) Elderly Households
The number of elderly households (private households with household

members aged 65 years old and over) in 2020 was 22.66 million. They
accounted for 40.7 percent of the total private households. There were 6.72
million one-person elderly households. Among these, there were
approximately two times as many females as males.
Table 2.4
Trends in Elderly Households
(Thousands)
Type of households 2005 2010 2015 2020
Private households .......................... 49,063 51,842 53,332 55,705
Elderly households ..................... 17,220 19,338 21,713 22,655
(percentage) ................................ 35.1 37.3 40.7 40.7
One-person households ........... 3,865 4,791 5,928 6,717
Males .................................... 1,051 1,386 1,924 2,308
Females ................................ 2,814 3,405 4,003 4,409
Nuclear-family households ..... 8,398 10,011 11,740 12,528
Others ...................................... 4,956 4,536 4,045 3,410
12
3. Declining Birth Rate and Aging Population
The population pyramid of 1950 shows that Japan had a standard-shaped

pyramid with a broad base. The shape, however, has changed dramatically
as both the birth rate and death rate have declined. In 2022, the aged
population (65 years old and over) was 36.24 million, constituting 29.0
percent of the total population and marking a record high.
Figure 2.4
Changes in the Population Pyramid
1950 2022 2070 (Projection)
years old and over
100 100
90 90
Males Females
80 80
4.9% 65 and over 29.0% 38.7%
70 70
60 60
50 50
59.6 15-64 59.4 52.1
40 40
30 30
20 20
10 10
35.4 0-14 11.6 9.2
0 0
6 4 2 0 2 4 6 6 4 2 0 2 4 6 6 4 2 0 2 4 6
Millions Millions Millions
Source: Statistics Bureau, MIC;

National Institute of Population and Social Security Research.
In Japan, the percentage of persons aged 65 years old and over exceeded
10 percent in 1985, but as of 1950, this percentage was already 11.4
percent in France and 10.2 percent in Sweden. The percentage exceeded 10
percent in 1955 in Germany, 1965 in Italy, and 1970 in the U.S.A., all
earlier than in Japan. However, in 2020, the percentage of the population
aged 65 years old and over in Japan was 28.6 percent, exceeding the U.S.A.
(16.2 percent), Sweden (20.0 percent), France (21.0 percent), Germany
(22.0 percent), and Italy (23.4 percent), indicating that the aging society in
Japan is progressing quite rapidly as compared to the U.S.A. and European
countries.
13
Figure 2.5
Proportion of Elderly Population by Country (Aged 65 years old and over)
%
50
45
Korea, Rep. of
▼
40
35 Japan 1)
Germany
▼
30
25 France
▲
Italy Sweden
20 U.S.A.
▼
▲
▲
15 India
China
10
0
1950 60 70 80 90 00 10 20 30 40 50 60 70
1) The ratios for 2015 and 2020 were calculated using imputation values for unknowns in
the Population Census results. The ratios for 2010 and earlier were calculated by excluding
unknowns from the denominator of Population Census results.
Source: Statistics Bureau, MIC; National Institute of Population and Social Security
Research; United Nations.
Table 2.5
Age Structure of Population by Country
(%)
2020 2070 (projection)
Country 65 years 65 years
0-14 0-14
15-64 old and 15-64 old and
years old years old
over over
Korea, Rep. of ...... 12.2 72.0 15.8 8.0 45.5 46.5
Japan 1) .................. 11.9 59.5 28.6 9.2 52.1 38.7
Italy ....................... 12.9 63.8 23.4 10.9 51.8 37.4
China .................... 18.0 69.4 12.6 9.6 53.5 36.9
Germany ............... 13.8 64.3 22.0 13.0 54.8 32.2
France ................... 17.6 61.4 21.0 14.4 54.7 31.0
Brazil .................... 20.8 69.9 9.3 13.4 57.1 29.5
U.K. ...................... 17.8 63.5 18.7 13.5 57.0 29.5
Canada .................. 15.9 66.1 18.0 13.4 57.4 29.2
Sweden ................. 17.7 62.2 20.0 14.0 57.5 28.6
U.S.A. ................... 18.5 65.3 16.2 14.6 57.9 27.5
Russia ................... 17.7 67.0 15.3 14.4 59.6 26.0
India ...................... 26.1 67.2 6.7 15.6 61.2 23.2
1) The ratios for 2020 were calculated using imputation values for unknowns in the Population
Census results.
Source: Statistics Bureau, MIC; National Institute of Population and Social Security Research;
United Nations.
14
On the other hand, in 2022, the child population (0-14 years old) in Japan
amounted to 14.50 million, accounting for 11.6 percent of the total
population, which was the lowest level on record. Since 1997, the aged
population (65 years old and over) have surpassed the child population in
their proportion of the total population. The working age population (15-64
years old) totaled 74.21 million, accounting for 59.4 percent of the entire
population. This population is continuing to decline since 1993, and in
2022 was the same ratio as the previous year, which was the lowest in
history. As a result, the dependency ratio (the sum of aged and child
population divided by the working age population) was 68.4 percent.
4. Births and Deaths
Population growth in Japan had primarily been driven by natural increase,

while social increase played only a minor part. However, in 2005, the
natural change rate (per 1,000 population) became negative for the first
time since 1899, when statistics were first collected in the current form,
aside from the years 1944 and 1946 when statistics could not be obtained.
It has been on a declining trend since then. In 2021, the natural change rate
was -5.1 and decreased for the 15th consecutive year.
Figure 2.6
Natural Population Change
Per 1,000 population
30
25
Live birth rate
20
15
10
5 Natural change rate

Death rate
0
-5
-10
1950 60 70 80 90 00 10 20 21
Source: Ministry of Health, Labour and Welfare.
15
During the second baby boom between 1971 and 1973, the live birth rate
(per 1,000 population) was at a level of 19. Since the late 1970s, it has
continued to fall. The rate for 2021 was 6.6. The decline in the live birth
rate may partly be attributable to the rising maternal age at childbirth. The
average mothers' age at first childbirth rose from 25.6 in 1970 to 30.9 in
2021.
The total fertility rate was on a downward trend after dipping below 2.00
in 1975, and reached a record low of 1.26 in 2005. The rate was on a path
of recovery with an increase after that. However, the total fertility rate
decreased for 6 consecutive years and dropped to 1.30 in 2021.
The death rate (per 1,000 population) was steady at 6.0 - 6.3 between 1975
and 1987, and has maintained an uptrend since 1988, reflecting the aging
of the population. It reached 11.7 in 2021.
Table 2.6
Vital Statistics
Rates per 1,000 population 1) Total Life expectancy at birth
Year Infant Natural fertility (years)
Live births Deaths 2)
mortality change rate Males Females
1950 28.1 10.9 60.1 17.2 3.65 a) 59.57 a) 62.97
1955 19.4 7.8 39.8 11.6 2.37 63.60 67.75
1960 17.2 7.6 30.7 9.6 2.00 65.32 70.19
1965 18.6 7.1 18.5 11.4 2.14 67.74 72.92
1970 18.8 6.9 13.1 11.8 2.13 69.31 74.66
1975 17.1 6.3 10.0 10.8 1.91 71.73 76.89
1980 13.6 6.2 7.5 7.3 1.75 73.35 78.76
1985 11.9 6.3 5.5 5.6 1.76 74.78 80.48
1990 10.0 6.7 4.6 3.3 1.54 75.92 81.90
1995 9.6 7.4 4.3 2.1 1.42 76.38 82.85
2000 9.5 7.7 3.2 1.8 1.36 77.72 84.60
2005 8.4 8.6 2.8 -0.2 1.26 78.56 85.52
2010 8.5 9.5 2.3 -1.0 1.39 79.55 86.30
2015 8.0 10.3 1.9 -2.3 1.45 80.75 86.99
2020 6.8 11.1 1.8 -4.3 1.33 81.56 87.71
2021 6.6 11.7 1.7 -5.1 1.30 81.47 87.57
1) The infant mortality rate is per 1,000 live births.
2) The sum of the age-specific fertility rates from age 15 to 49 years old.
a) 1950-1952 period.
16
Table 2.7
Changes of Mothers' Age at Childbirth
Number Distribution of mothers' age (%) 2) Mean age
Year of births 40 and bearing first
(1,000) Under 19 20-24 25-29 30-34 35-39
1)
over child
1970 1,934 1.0 26.5 49.2 18.5 4.2 0.5 25.6
1980 1,577 0.9 18.8 51.4 24.7 3.7 0.5 26.4
1990 1,222 1.4 15.7 45.1 29.1 7.6 1.0 27.0
2000 1,191 1.7 13.6 39.5 33.3 10.6 1.3 28.0
2010 1,071 1.3 10.4 28.6 35.9 20.5 3.3 29.9
2015 1,006 1.2 8.4 26.1 36.3 22.7 5.4 30.7
2020 841 0.8 7.9 25.9 36.1 23.3 5.9 30.7
2021 812 0.7 7.4 25.9 36.0 23.8 6.2 30.9
1) Including mothers' ages that were not reported. 2) Percentage in relation to number of
births, excluding those for which mothers' ages were not reported.
Life expectancy at birth in Japan climbed sharply after World War II, and
is today at quite a high level in the world. In 2021, it was 87.6 years for
females and 81.5 years for males, down from the previous year for both
genders.
Figure 2.7
Life Expectancy at Birth by Country
Years
45
0 50 55 60 65 70 75 80 85 90
Japan (2021) 87.6

81.5
Switzerland 85.6
(2021) 81.6
France (2021) 85.4

79.3
Sweden (2021) 84.8

81.2
Brazil (2020) 80.3

73.3
79.9
U.S.A. (2020) 74.2
China (2015) 79.4

73.6
76.4
Russia (2020) 66.5 Females
Egypt (2021) 75.9
73.4
South Africa 68.5 Males
(2020) 62.5
17
5. Marriages and Divorces
It showed an apparent marriage boom in the early 1970s that the annual
number of marriages in Japan exceeded 1 million couples coupled with the
marriage rate (per 1,000 population) hovering over 10.0. However, both
the number of couples and the marriage rate have been on a declining
trend thereafter. In 2021, 501,138 couples married, and the marriage rate
was 4.1.
The mean age of first marriage was 31.0 for grooms and 29.5 for brides in
2021. The mean age of first marriage for grooms rose by 2.0 years, while
that of brides rose by 2.3 years over the past 20 years (in 2001: grooms,
29.0; brides, 27.2). In addition, there has been an increasing trend in the
proportion of those who have never married until he or she turns the exact
age 50, reaching 28.3 percent for males and 17.8 percent for females in
2020, the highest percentages ever. The declining marriage rate, rising
marrying age and increased choice of unmarried life in recent years as
described above could explain the dropping birth rate.
Table 2.8 Table 2.9

Mean Age of First Marriage Proportion of Never Married
Year Grooms Brides
at Exact Age 50 by Sex 1)
(%)
1950 25.9 23.0
1955 26.6 23.8 Year Males Females
1960 27.2 24.4 1950 1.5 1.4
1965 27.2 24.5 1960 1.3 1.9
1970 26.9 24.2 1970 1.7 3.3
1975 27.0 24.7
1980 2.6 4.5
1980 27.8 25.2
1985 28.2 25.5 1990 5.6 4.3
1990 28.4 25.9 2000 12.6 5.8
1995 28.5 26.3 2010 20.1 10.6
2000 28.8 27.0 2015 2) 24.8 14.9
2005 29.8 28.0 2)
2010 30.5 28.8 2020 28.3 17.8
2015 31.1 29.4 1) The proportion is computed as the mean
2020 31.0 29.4 value of the proportion remaining single at
2021 31.0 29.5 ages 45-49 and 50-54.
Source: Ministry of Health, Labour and Welfare. 2) Based on results with imputation for
persons of unknown marital status.
Source: National Institute of Population
and Social Security Research.
18
In contrast, there was an upward trend about the divorces since the late
1960s, hitting a peak of 289,836 couples in 2002. Subsequently, both the
number of divorces and the divorce rate have been declining since 2003. In
2021, the number of divorces totaled 184,384 couples, and the divorce rate
(per 1,000 population) was 1.50.
Figure 2.8
Changes in Marriage Rate and Divorce Rate

12
10
8 Marriage rate
▼
6
4
Divorce rate
2 ▼
0
1970 80 90 00 10 20 21
6. Population Density and Regional Distribution

(1) Population Density
In 2020, Tokyo Metropolis had the largest population of 14.05 million

among Japan's 47 prefectures, followed in decreasing order by the
prefectures of Kanagawa, Osaka, Aichi, Saitama, Chiba, Hyogo, and
Hokkaido. The top 8 prefectures in terms of population had a total
population of 63.98 million, and accounted for more than 50 percent (50.7
percent) of the total population.
In addition, the population density in Tokyo Metropolis was the highest

among Japan's prefectures, at 6,402.6 persons per square kilometer. This
was almost 19 times larger than the national average (338.2 persons per
square kilometer).
19
Figure 2.9
Population Density by Prefecture (2020)
(per square km)
Under 200
200 - 299
300 - 499
500 - 999
1,000 persons and over
Tokyo Metropolis
In 2020, there were 12 cities in Japan with a population of 1 million or

more. Their total population topped 30 million, a figure equivalent to 24.0
percent of the national total. The largest single city was the 23 Cities of
Tokyo Metropolis, with 9.73 million citizens. It was followed in
decreasing order by Yokohama City (3.78 million), Osaka City (2.75
million), and Nagoya City (2.33 million).
20
Table 2.10
Population of Major Cities
(Thousands)
Population Population
Cities Cities
2015 2020 2015 2020
Tokyo, 23 Cities ........ 9,273 9,733 Kawasaki City ............ 1,475 1,538
Yokohama City .......... 3,725 3,777 Kobe City ................... 1,537 1,525
Osaka City ................. 2,691 2,752 Kyoto City ................. 1,475 1,464
Nagoya City ............... 2,296 2,332 Saitama City .............. 1,264 1,324
Sapporo City .............. 1,952 1,973 Hiroshima City .......... 1,194 1,201
Fukuoka City ............. 1,539 1,612 Sendai City ................ 1,082 1,097
(2) Population Distribution
In 2020, population was 38.0 million in the Kanto major metropolitan area,
19.2 million in the Kinki major metropolitan area, and 9.2 million in the
Chukyo major metropolitan area. Total population of these three major
metropolitan areas reached 66.4 million, accounting for 52.6 percent of
Japan's population. Population density in the Kanto major metropolitan
area was 2,804.7 persons per square kilometer. In the Kinki major
metropolitan area, it was 1,464.9 persons per square kilometer, and in the
Chukyo major metropolitan area, it was 1,323.0 persons per square
kilometer.
Table 2.11
Population of 3 Major Metropolitan Areas 1) (2020)
Surface Population
Population Percentage
Areas Area density
(1,000) of the total 2 2
(km ) (per km )
(%)
Kanto major metropolitan area ....................... 38,034 30.2 13,561 2,804.7
Chukyo major metropolitan area ..................... 9,192 7.3 6,948 1,323.0
Kinki major metropolitan area ........................ 19,176 15.2 13,091 1,464.9
Total of three major metropolitan areas .......... 66,403 52.6 33,599 1,976.3
1) Major metropolitan areas consist of central cities (Kanto: 23 Cities of Tokyo Metropolis,
Yokohama City, Kawasaki City, Sagamihara City, Saitama City, and Chiba City;
Chukyo: Nagoya City; Kinki: Osaka City, Sakai City, Kyoto City, and Kobe City) and
surrounding areas (cities, towns and villages).
21
Chapter 3
Economy
© YAMADA Toshiya
A night scene of the Sumidagawa-Ohashi Bridge in Tokyo is like a magic

lamp dispelling COVID-19.
In October 2021, the New Capitalism Realization Headquarters was
established within the Cabinet to realize a new form of capitalism based on
the concept of a virtuous cycle of growth and distribution, and developing
a new post-COVID-19 society.
CHAPTER 3 ECONOMY
1. Economic Development
During the 1960s, Japan's economy grew at a rapid pace of over 10 percent
per annum. This rapid economic growth was supported by: (i) the
expansion of private investments in plant and equipment, backed by a high
rate of personal savings; (ii) a large shift in the working population from
primary to secondary industries and "an abundant labour force supplied by
a high rate of population growth"; and (iii) an increase in productivity
brought about by adopting and improving foreign technologies.
Figure 3.1
Economic Growth Rates
%
25
20 1995-2022 data: 2008 SNA

(standard prices in 2015;
by chain-linked method)
15
At nominal prices
10
▼
5 At real prices
▼
-5
1956-1980 data: 1968 SNA 1981-1994 data: 1993 SNA
(standard prices in 1990; (standard prices in 2000;
by fixed-based method) by chain-linked method)
-10
1956 60 70 80 90 00 10 20 22
Source: Economic and Social Research Institute, Cabinet Office.
In the 1970s, the sharp increase of Japan's exports of industrial products to

the U.S.A. and Europe began to cause international friction. In 1971, the
U.S.A. announced it would end the convertibility of the dollar into gold. In
December 1971, Japan revalued the yen from 360 yen against the U.S.
dollar, which had been maintained for 22 years, to 308 yen. In February
1973, Japan adopted a floating exchange-rate system.
23
CHAPTER 3 ECONOMY
In October 1973, the fourth Middle East War led to the first oil crisis,
triggering high inflation. Accordingly, Japan recorded negative economic
growth in 1974 for the first time in the post-war period. Following the
second oil crisis in 1978, efforts were made to change Japan's industrial
structure from "energy-dependent" to "energy-saving", enabling Japan to
successfully overcome inflation.
In the 1980s, the trade imbalance with advanced industrial countries
expanded because of the yen's appreciation. As part of administrative and
financial reforms, Japan National Railways and Nippon Telegraph and
Telephone Public Corporation were privatized. As a result, domestic
demand-led economic growth was achieved.
2. Bubble Economy and Its Collapse

At the end of the 1980s, Japan's economy enjoyed favorable conditions,
with stable wholesale prices and a low unemployment rate. Corporate
profits were at their highest level in history, and corporate failures were at
their lowest level, while investments in plant and equipment for
manufacturing products, such as semiconductors, were very active. Stock
and land prices continued to rise rapidly, and large-scale urban
developments and resort facility developments in rural areas progressed at
a very fast pace. However, excessive funds flowed into the stock and real
estate markets, causing abnormal increases in capital asset values (forming
an economic bubble).
At the end of 1980, Japan's net worth (national wealth) stood at 1,363
trillion yen, 5.6 times the GDP. It then increased, reaching 3,531 trillion
yen, 8.0 times the GDP, at the end of 1990, owing to increasing land and
stock prices. At the beginning of 1990, stock prices plummeted, followed
by sharp declines in land prices. This marked the start of major economic
recession (collapse of the bubble economy). Japan's financial and
economic systems, which were excessively dependent on land,
consequently approached collapse.
Due to the collapse of the bubble economy, the national wealth decreased,
and while there were fluctuations, continued on a downward trend. Since
2012, it has been in a gradual increasing trend. At the end of 2021, it was
3,859 trillion yen.
24
CHAPTER 3 ECONOMY
Figure 3.2
National Wealth 1)
Trillion yen
4,500
4,000
Net external assets
3,500
3,000
2,500
Non-produced assets
2,000
1,500
1,000 Fixed assets and

inventories
500
0
1980 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 21
1) Data was estimated using a different method beginning in 1994.

Massive bad debts were created in financial institutions' loan portfolios, as

corporate borrowers suffered serious losses due to declining land prices.
As a result, shareholders' equity in financial institutions shrank. In 1997,
large banks began to fail. In 1998 and 1999, the government injected
public money into the banking sector to stabilize the financial system.
The Japanese economy began to make a moderate recovery in February
1999. This, however, was only a temporary phenomenon, as investments in
plant and equipment were weak and the recovery was too dependent on
foreign demand and information and communication technologies. With
the global decline in IT demand from mid-2000, Japan's exports to Asia
dropped, necessitating adjustments of excess inventory and production
facilities. In line with this, the Japanese economy again entered into an
economic downturn in 2001.
25
CHAPTER 3 ECONOMY
Figure 3.3
Gross Domestic Product (Nominal prices, converted into U.S. dollars)
Trillion U.S. dollars Thousand U.S. dollars

28 80
France Total Per capita
24 70
Germany
U.K. 60
20
U.S.A.
50
16 Japan
40
12
30
8
20
4 10
0 0
1990 00 10 20 22 1990 00 10 20 22
Source: OECD.
On the economic recovery phase starting at the beginning of 2002, the

corporate sector, with export-related industries, as the central part, became
favorable based on the steady recovery of the global economy, and shifted
generally with a bullish tone up until mid-2007.
3. Economic Trends after Collapse of the Bubble Economy

At the start of 2008, the Japanese economy was faced with a standstill in
its path to recovery as private consumption and investments in plant and
equipment fell flat and so did production. This occurred against the
backdrop of soaring crude petroleum and raw material prices and
repercussions from the American subprime mortgage loan problem that,
since mid-2007, rapidly clouded future prospects for the world economy
further. In addition, the bankruptcy of the major American securities firm
Lehman Brothers in September 2008 led to a serious financial crisis in
Europe and the U.S.A. Japan was also affected by the yen's rise and the
sudden economic contraction in the U.S.A. and other countries. Declining
exports contributed to a large drop in production and a sharp rise in
unemployment.
26
CHAPTER 3 ECONOMY
Table 3.1
Gross Domestic Product 1) (Expenditure approach)
(Billion yen)
Item 2019 2020 2021 2022
Gross domestic product (GDP) ........................... 552,535.4 528,894.6 540,237.0 545,794.0
Domestic demand ............................................... 552,270.9 533,259.7 539,244.5 547,892.5
Private demand ................................................ 413,763.3 391,170.9 393,835.4 402,841.8
Private final consumption expenditure ......... 300,738.3 286,740.4 287,894.8 293,861.1
Private residential investment ...................... 20,649.5 19,012.4 18,796.8 17,924.4
Private plant and equipment ......................... 90,933.1 86,513.7 87,169.1 88,744.9
Changes in inventories of private sectors ..... 1,476.1 -1,103.3 42.8 2,443.8
Public demand ................................................. 138,508.6 142,087.0 145,416.7 145,038.4
Government final consumption expenditure ... 110,489.3 113,108.5 117,047.3 118,823.3
Gross capital formation by public sectors .... 28,105.9 29,070.1 28,531.7 26,530.8
Changes in inventories of public sectors ...... -57.0 -67.1 -83.7 -109.0
Net exports of goods and services ...................... 323.6 -4,732.2 1,134.3 -1,827.8
Exports of goods and services ...................... 103,927.0 91,877.0 102,619.5 107,660.0
(less) Imports of goods and services ............. 103,603.5 96,609.2 101,485.1 109,487.8
(Reference)
Trading gains/losses ........................................... -2,033.6 3,069.2 -3,942.5 -15,827.4
Gross domestic income (GDI) ........................... 550,501.9 531,963.8 536,294.5 529,966.6
Net income from the rest of the world ................ 21,650.0 19,362.3 26,070.6 33,404.7
Incomes from the rest of the world .................. 33,988.7 29,584.9 37,258.7 47,256.1
(less) Incomes to the rest of the world ............. 12,338.7 10,222.6 11,188.1 13,851.5
Gross national income (GNI) .............................. 572,151.9 551,326.1 562,365.1 563,371.3
1) Quarterly estimates of GDP, 2008 SNA (standard prices in 2015; by chain-linked method).
Subsequently, the Japanese economy recovered with foreign demand and

economic measures after April 2009, and came to a standstill starting
around October 2010. In early 2011, however, it began to rally. The Great
East Japan Earthquake taking place on March 11, 2011, and the nuclear
power plant accident caused by it weakened the economic recovery.
In order to achieve an early end to deflation and break free of economic
stagnation, in January 2013, the government set forth its "three-arrows"
strategy (also known as "Abenomics").
After that the economy picked up, and signs indicated that the protracted
deflation would reverse. There was some weakening due to the rebound
from last-minute demand brought on by the consumption tax increase in
April 2014, but as the moderate recovery continued and the real economy
27
CHAPTER 3 ECONOMY
improved, prices mildly increased, and the economy moved steadily

toward overcoming deflation. In part due to factors like the impact of
falling crude oil prices near the end of 2014, the economy continued its
moderate recovery into 2015. From the latter half of 2016, a virtuous cycle
developed, against a backdrop of moderate recovery in the overseas
economy, starting from the corporate sector, e.g., with recovery in exports
and production, and with the dramatic improvement in the employment
situation, labor shortages intensified to level like that during the bubble era.
The new "Reiwa" era began in 2019, and amid improvement in the
employment/income environment and high corporate profits, a moderate
recovery continued in areas such as increasing personal consumption and
capital investment, the mainstays of domestic demand. However, in 2020
conditions abruptly worsened due to the effects of the COVID-19
pandemic. In 2021, improvement continued from the second half of the
previous year, but suppression of economic activity aimed at preventing
the spread of disease continued intermittently from the start of the year,
and GDP did not manage to recover its level from before the crisis. After
that, the invasion of Ukraine by Russia from February 2022 sparked a
surge in raw material prices. Today, dealing with inflation has become a
global issue.
Figure 3.4
Economic Growth Rates 1) (Quarterly changes)
%
6
-2
-4
-6
-8
-10
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ
2018 19 20 21 22
1) Quarterly estimates of GDP, 2008 SNA (standard prices in 2015; by chain-linked

method; seasonally adjusted).
28
CHAPTER 3 ECONOMY
4. Industrial Structure
Japan's industrial structure has undergone a major transformation since the
end of World War II. The chronological changes in the industrial structure
during this period by industry share of employed persons and GDP show
that shares in the primary industry in particular have fallen dramatically
since 1970, when Japan experienced rapid economic growth. During the
1980s, the secondary industry's share of employed persons and GDP also
began to decline gradually. On the other hand, the tertiary industry's share
of them have risen consistently.
Table 3.2
Changes in Industrial Structure
(%)
1) 2) 3)
Employed persons Gross domestic product (GDP)
Year Primary Secondary Tertiary Primary Secondary Tertiary
industry industry industry industry industry industry
1950 48.6 21.8 29.7 ... ... ...
1955 41.2 23.4 35.5 19.2 33.7 47.0
1960 32.7 29.1 38.2 12.8 40.8 46.4
1965 24.7 31.5 43.7 9.5 40.1 50.3
1970 19.3 34.1 46.6 5.9 43.1 50.9
1975 13.9 34.2 52.0 5.3 38.8 55.9
1980 10.9 33.6 55.4 # 3.5 # 36.2 # 60.3
1985 9.3 33.2 57.5 3.0 34.9 62.0
1990 7.2 33.5 59.4 2.4 35.4 62.2
1995 # 6.0 # 31.3 # 62.7 # 1.7 # 31.5 # 66.9
2000 5.2 29.5 65.3 1.5 29.2 69.3
2005 4.9 26.4 68.6 1.1 26.8 72.1
2010 4.2 25.2 70.6 1.1 25.5 73.4
2015 3.7 24.6 71.7 1.0 25.9 73.1
2020 3.2 23.4 73.4 1.0 25.9 73.1
1) Due to the revision of the Japan Standard Industrial Classification, the figures from 1995
onward are not strictly consistent with those for 1990 or earlier. 2) Ratios for 2015 and
2020 use imputation values for unknowns. 3) The data for 1955 to 1975 are based on the
1968 SNA, the data for 1980 to 1990 are based on the 1993 SNA, and the data for 1995
onwards are based on the 2008 SNA.
Source: Statistics Bureau, MIC; Economic and Social Research Institute, Cabinet Office.
29
CHAPTER 3 ECONOMY
In 1970, the primary industry accounted for 19.3 percent of employed

persons, the secondary industry for 34.1 percent, and the tertiary industry
for 46.6 percent. In 2020, the corresponding shares of these three sectors
were 3.2 percent, 23.4 percent and 73.4 percent, respectively.
As for GDP by type of economic activity, in 1970, the primary, secondary
and tertiary industries accounted for 5.9 percent, 43.1 percent and 50.9
percent, respectively. In 2020, these figures were 1.0 percent, 25.9 percent
and 73.1 percent, respectively.
Table 3.3
Gross Domestic Product by Type of Economic Activity
(%)
1995 2000 2005 2010 2015 2020
Primary industry
Agriculture, forestry and fishing ........................... 1.6 1.5 1.1 1.1 1.0 1.0
Secondary industry
Mining ................................................................... 0.2 0.1 0.1 0.1 0.1 0.1
Manufacturing ....................................................... 23.5 22.5 21.4 20.8 20.5 20.0
Construction .......................................................... 7.6 6.7 5.4 4.6 5.2 5.7
Tertiary industry
Electricity, gas and water supply and
waste management service ................................. 3.1 3.3 3.0 2.9 2.9 3.2
Wholesale and retail trade ..................................... 13.8 13.0 14.1 13.4 13.0 12.7
Transport and postal services ................................ 5.5 4.9 5.1 5.1 5.3 4.2
Accommodation and food service activities ......... 3.0 3.1 2.7 2.6 2.4 1.7
Information and communications .......................... 3.3 4.7 5.0 5.0 4.9 5.1
Finance and insurance ........................................... 5.1 5.0 6.1 4.8 4.3 4.2
Real estate ............................................................ 10.3 10.8 11.0 12.3 12.0 12.2
Professional, scientific and technical activities ..... 4.5 5.5 6.2 7.2 7.8 8.7
Public administration ............................................ 4.7 5.0 5.0 5.1 4.9 5.2
Education ............................................................... 3.6 3.6 3.6 3.7 3.5 3.5
Human health and social work activities .............. 4.2 5.1 5.7 6.7 7.4 8.2
Other service activities .......................................... 5.2 5.2 4.9 4.6 4.2 3.7
According to the "2021 Economic Census for Business Activity", there

were 5.2 million establishments (excluding businesses whose operational
details are unknown, national government services, and local government
services) in Japan, at which a total of 57.9 million persons were employed.
30
CHAPTER 3 ECONOMY
The average number of persons engaged per establishment was 11.2 and
establishments with less than 10 persons accounted for 75.6 percent of the
total.
Figure 3.5
Shares of Establishments and Persons Engaged by Scale of Operation 1)
(2021)
100 persons and over 1.3
1-4 persons 5-9 10-19 20-99
▼ ▼ ▼ ▼
Establishments 56.2 19.4 12.5 9.9
Others 2) 0.7
Persons engaged 10.5 11.4 15.1 33.0 30.0
0
0% 20 40 60 80 100
100%%
1) Excluding businesses whose operational details are unknown, national government services, and
local government services. 2) Establishments consisting of only loaned or dispatched employees.
Source: Statistics Bureau, MIC; Ministry of Economy, Trade and Industry.
With regard to the number of establishments by the major groupings of the

Japan Standard Industrial Classification, the most numerous category was
the "wholesale and retail trade", numbering 1.3 million, followed by
"accommodations, eating and drinking services" and "construction". In
terms of the number of persons engaged, establishments in the "wholesale
and retail trade" ranked first as they employed 11.6 million persons,
followed by "manufacturing" and "medical, health care and welfare".
31
CHAPTER 3 ECONOMY
Table 3.4
Number of Establishments and Persons Engaged 1) (2021)
Persons
Item Establishments
engaged
Total ............................................................................................ 5,156,063 57,949,915

By industry
Primary industry
Agriculture, forestry and fisheries ....................................... 42,458 453,703
Secondary industry
Mining and quarrying of stone and gravel ........................... 1,865 19,697
Construction ........................................................................ 485,135 3,737,415
Manufacturing ..................................................................... 412,617 8,803,643
Tertiary industry
Electricity, gas, heat supply and water ................................ 9,139 202,149
Information and communications ........................................ 76,559 1,986,839
Transport and postal activities ............................................. 128,224 3,264,734
Wholesale and retail trade ................................................... 1,228,920 11,611,924
Finance and insurance ......................................................... 83,852 1,494,436
Real estate and goods rental and leasing ............................. 374,456 1,618,138
Scientific research, professional and technical services ...... 252,340 2,118,920
Accommodations, eating and drinking services .................. 599,058 4,678,739
Living-related and personal services and amusement services ... 434,209 2,176,139
Education, learning support ................................................. 163,357 1,950,734
Medical, health care and welfare ......................................... 462,531 8,162,398
Compound services ............................................................. 32,131 435,970
Services, n.e.c. ..................................................................... 369,212 5,234,337
By type of legal organizations
Individual proprietorships .................................................. 1,640,810 4,573,854
Corporations ........................................................................ 3,486,590 53,258,019
Companies ........................................................................ 3,010,602 44,144,737
Organizations other than corporations ................................. 28,663 118,042
1) Excluding businesses whose operational details are unknown, national government
services, and local government services.
The domestic manufacturing industry has progressed in the relocation of

production bases overseas, for the cutback on production costs, the
production in consumption areas, and the evasion of fluctuations in
exchange rates.
32
CHAPTER 3 ECONOMY
The number of overseas affiliates in the manufacturing industry was

10,902 companies at the end of fiscal 2021, and the overseas production
ratio was 25.8 percent in actual performance in fiscal 2021.
Table 3.5
Trends of Overseas Affiliated Company (Manufacturing industries)
Overseas Value of Ratio of overseas
Number of
Fiscal Value of Sales production capital capital
overseas
year ratio 2) investment investment 3)
affiliates 1)
(Million yen) (%) (Million yen) (%)
2012 10,425 98,384,657 20.3 3,815,707 25.8
2013 10,545 116,997,649 22.9 4,646,055 29.4
2014 10,592 129,712,997 24.3 4,649,364 28.1
2015 11,080 134,996,164 25.3 4,571,639 25.5
2016 10,919 123,636,074 23.8 3,766,446 20.7
2017 10,838 138,024,661 25.4 3,961,088 20.8
2018 11,344 138,584,467 25.1 4,384,020 21.5
2019 11,199 121,618,532 23.4 4,292,606 22.1
2020 11,070 112,790,400 23.6 3,219,364 19.4
2021 10,902 139,441,614 25.8 3,670,889 20.8
1) End of fiscal year. 2) Overseas production ratio = Sales of overseas affiliates/(Sales of
overseas affiliates + Sales of domestic companies) × 100.
3) Ratio of overseas capital investment = Amount of capital investment in overseas
affiliates/(Amount of capital investment in overseas affiliates + Amount of capital
investment in domestic companies) × 100.
Source: Ministry of Economy, Trade and Industry.
In the future, it is anticipated that companies in the manufacturing industry

in Japan will expand their overseas business. There are many companies
that are planning on expanding their business to India, China, the U.S.A.,
and Vietnam.
33
Chapter 4
Finance
© KAWANO Katsushige
New Years in Asakusa.

Hatsumode is a traditional event in Japan, the first temple or shrine visit of the New
Year. Visitors pray for good fortune in the coming year, toss coins into offering boxes,
buy written oracles called omikuji, and purchase omamori charms. Income of
religious corporations is basically tax-free.
CHAPTER 4 FINANCE
1. National and Local Government Finance

(1) National Government Finance
Japan's fiscal year starts in April, and ends in March of the following year.
In setting the national budget, the government submits a proposed budget
for the upcoming fiscal year to the Ordinary Session of the Diet, which
begins in January. The proposal is then discussed, and approved usually
before the fiscal year begins in April (initial budget). In the event that the
Diet does not approve the budget by the end of March, an interim budget
comes into effect. The interim budget is effective from the beginning of
April until such time when the proposed budget is approved. If it becomes
necessary to amend the budget in the course of a fiscal year, the
government submits a supplementary budget for Diet approval. In the
initial budget for fiscal 2023, 4 trillion yen is budgeted as a contingency
fund for COVID-19 and measures to address soaring crude oil and
commodity prices, and 1 trillion yen as a contingency fund for economic
emergency (including the impact from the Ukraine crisis).
Japan's national budget consists of the general account budget, special

account budgets, and the budgets of government-affiliated agencies. Using
revenues from general sources such as taxes, the general account covers
core national expenditures such as social security, public works, education
and science, and national defense.
Special accounts are accounts established for the national government to

carry out projects with specific objectives, and their management and
administration are independent of the general account. The number and
particulars of special accounts change from year to year; for fiscal 2023,
there are a total of 13 special accounts, including the National debt
consolidation fund, the Local allocation tax and local transfer tax, and the
Reconstruction from the Great East Japan Earthquake.
Government-affiliated agencies are entities established by special laws and

are entirely funded by the government. Currently, the Japan Finance
Corporation, the Okinawa Development Finance Corporation, Japan Bank
for International Cooperation, and the Japan International Cooperation
Agency (Finance and Investment Account) are operated.
35
CHAPTER 4 FINANCE
Figure 4.1
Revenue and Expenditure in the General Account 1)
Trillion yen
160
140
120
100
Expenditure 2)
80
Government bond issues 3)
60 Tax revenue
40
20
0
FY1990 95 00 05 10 15 20 23
1) Based on settled figures until FY2021, supplementary budget for FY2022, and draft budget for
FY2023. 2) Total expenditure of FY2023 includes the carry-over (3.4 trillion yen) from Defense
Buildup Funds which is the resource for the national defense expenditure for FY2024 and years after.
3) Excludes some special accounts.
Source: Ministry of Finance.
In the national government finance, expenditure has continued to surpass

revenue. Since fiscal 2008 in particular, the worsening economy has
decreased tax revenue, contributing to an increasing gap between revenue
and expenditure. From fiscal 2009 to fiscal 2012, bond issues exceeded tax
revenue in most years, but starting in fiscal 2013, tax revenue began to
exceed borrowing. However, in fiscal 2020, the supplementary budget for
the contingency fund for COVID-19 was covered solely by government
bonds, leading to bond issues exceeding tax revenue.
The size of the general account budget for fiscal 2023 was 114 trillion yen,
an increase of 6.8 trillion yen (6.3 percent) from the initial budget of fiscal
2022. This is equivalent to 20.0 percent of the fiscal 2023 GDP, forecasted
by the government at 572 trillion yen.
36
CHAPTER 4 FINANCE
Table 4.1
Expenditures of General Account
(Billion yen)
General
Fiscal Total expendi- Education
Social National Public
year tures and Pensions
security defense works
science
(A)+(B)+(C) (A)
2000 89,321 52,046 17,636 6,872 1,418 4,907 11,910

2005 85,520 49,343 20,603 5,701 1,065 4,878 8,391
2010 95,312 56,978 28,249 6,051 709 4,670 5,803
2015 98,230 58,966 31,398 5,574 387 5,130 6,378
2020 147,597 109,016 42,998 9,194 169 5,505 8,413
2021 144,650 100,503 50,161 7,956 140 6,014 8,600
2022 1) 139,220 97,635 40,939 8,813 122 5,810 8,053
2023 2) 114,381 72,732 36,889 5,416 97 10,169 6,060
Local
National
Small and Food allocation
Fiscal Economic medium-sized Energy debt
stable Others tax grants,
year cooperation business measures service
supply etc.
promotion
(B) (C)
2000 1,012 933 677 247 6,434 21,446 15,829

2005 784 237 493 657 6,536 18,736 17,441
2010 746 830 845 1,122 7,953 19,544 18,790
2015 661 340 968 1,276 6,854 22,464 16,801
2020 763 16,257 1,027 1,498 23,190 22,326 16,256
2021 669 9,944 1,267 1,772 13,980 24,589 19,558
2022 1) 847 1,419 2,197 1,761 27,674 24,072 17,513
2023 2) 511 170 854 1,265 11,300 25,250 16,399
1) Revised budget. 2) Initial budget.
In fiscal 2023, major expenditures from the initial general account budget
include social security (32.3 percent), national debt service (22.1 percent),
local allocation tax grants, etc. (14.3 percent), national defense (8.9
percent), public works (5.3 percent), and education and science (4.7
percent).
With regard to revenue sources for the fiscal 2023 initial general account
budget, consumption tax, income tax and corporation tax account for 51.6
percent. Even with the addition of other taxes and stamp revenues, these
revenue sources only amount to 60.7 percent of the total revenue.
37
CHAPTER 4 FINANCE
Figure 4.2
Composition of Revenue and Expenditure of General Account Budget
(Initial budget, FY2023)
National General
debt service expenditure
22.1 Social
63.6%
security
32.3
Local Expenditure
allocation tax 114 trillion
grants, etc. yen
14.3
Others
8.0
National
defense
Contingency fund 8.9
for economic
emergency Contingency fund Public works
(including the for COVID-19 and Education and 5.3
impact from the measures to science
Ukraine crisis) address soaring
0.9 crude oil and 4.7
commodity prices Government
3.5
bond issues
31.1 Special Consumption
deficit- tax
financing 20.4
bonds Tax and
25.4 Revenue stamp
114 trillion revenues
yen 60.7%
Construction
bonds
5.7
Others
8.1 Income tax
18.4
Other taxes and

stamp revenues Corporation tax
9.1 12.8
(2) Local Government Finance
There are two budget categories in local government finance: the ordinary
accounts and the public business accounts. The former covers all kinds of
expenses related to ordinary activities of the prefectural and municipal
governments. The latter covers the budgets of independently accounted
enterprises such as public enterprises (water supply and sewerage systems,
hospitals, etc.), the national health insurance accounts, and the latter-stage
38
CHAPTER 4 FINANCE
elderly medical care accounts.
While expenditures such as defense expenses are administered solely by

the national government, a large portion of expenditures that directly relate
to the people's daily lives are disbursed chiefly through local governments.
In particular, a high proportion of the following expenditures are disbursed
through local governments: sanitation expenses, which include areas such
as medical service and garbage disposal; school education expenses;
judicial, police, and fire service expenses; and public welfare expenses,
which cover the development and management of welfare facilities for
children, the elderly, and the mentally and/or physically challenged.
The revenue composition of local governments usually remains almost the

same each fiscal year, while their budget scale and structure vary from
year to year. The largest portion of fiscal 2021 (net) revenues came from
local taxes, accounting for 33.1 percent of the total. The second-largest
source, 25.0 percent, was national treasury disbursements.
Table 4.2
Local Government Finance 1) (Ordinary accounts)
(Million yen)
Item FY2017 FY2018 FY2019 FY2020 FY2021
Revenues ........................................101,323,315 101,345,285 103,245,881 130,047,239 128,291,063
Local taxes ................................... 39,904,402 40,751,442 41,211,450 40,825,620 42,408,938
Local transfer tax ......................... 2,405,224 2,650,873 2,613,842 2,232,335 2,446,767
Special local grants ....................... 132,800 154,400 468,271 225,609 454,707
Local allocation tax ...................... 16,768,005 16,548,225 16,739,246 16,988,952 19,504,879
National treasury disbursements ... 15,520,357 14,885,189 15,834,380 37,455,724 32,071,593
Local bonds ................................. 10,644,892 10,508,424 10,870,548 12,260,718 11,745,371
Expenditures ................................. 97,998,369 98,020,611 99,702,189 125,458,842 123,367,701
General administration .................. 9,121,944 9,285,987 9,670,029 22,534,636 12,431,790
Public welfare .............................. 25,983,397 25,665,947 26,533,656 28,694,223 31,312,993
Sanitation ..................................... 6,262,562 6,236,691 6,353,956 9,120,199 11,375,080
Agriculture, forestry and fishery ... 3,299,187 3,251,691 3,319,243 3,410,589 3,304,462
Commerce and industry ................ 4,901,049 4,760,301 4,782,097 11,533,589 14,980,239
Civil engineering work ................. 11,919,457 11,880,636 12,127,421 12,690,157 12,685,803
Education ..................................... 16,888,597 16,878,150 17,523,493 18,096,094 17,789,581
1) Settled figures of the net total of prefectural and municipal government accounts after deducting
duplications. The breakdown consists of major items only.
Source: Ministry of Internal Affairs and Communications.
39
CHAPTER 4 FINANCE
(3) National and Local Government Finance
Finance refers to revenue and expenditure of administrative services from

national and local governments. In the initial budget for fiscal 2022, the
gross total of national government expenditure was 577 trillion yen, the net
total was 272 trillion yen after eliminating duplications between both
accounts. Furthermore, the local public finance plan, which consists of the
estimated sum of ordinary accounts for the following fiscal year for all
local governments, amounted to 91 trillion yen. Therefore, after
eliminating duplications between national and local accounts (37 trillion
yen), the net total of both national and local government expenditures
combined was 326 trillion yen.
Table 4.3
Expenditures of National and Local Governments (Initial budget)
(Billion yen)
Item FY2005 FY2010 FY2015 FY2020 FY2021 FY2022
General account ............ 82,183 92,299 96,342 102,658 106,610 107,596
Special accounts ............ 411,944 367,074 403,553 391,759 493,699 467,282
Government-affiliated
agencies ...................... 4,678 3,135 2,216 1,722 3,234 2,519
Gross total (national) .... 498,805 462,508 502,111 496,139 603,542 577,398
Duplications ................ 257,490 244,744 262,184 250,273 304,750 305,521
Net total (national) ....... 241,316 217,764 239,927 245,867 298,792 271,877
Local public
finance plan ................. 83,769 82,127 87,768 91,747 90,248 90,993
Gross total
(national + local) ........ 325,084 299,891 327,694 337,614 389,040 362,870
Duplications ................ 32,689 31,563 35,484 36,241 35,390 36,684
Net total
(national + local) ........ 292,395 268,328 292,211 301,373 353,650 326,185
Source: Policy Research Institute, Ministry of Finance.
The settlement amount for fiscal 2021, the net total of national and local
government expenditures was 220 trillion yen. The national government
disbursed 44.3 percent of this amount, while the local governments
disbursed 55.7 percent.
40
CHAPTER 4 FINANCE
Figure 4.3
Ratio of Net Total National and Local Expenditures by Function
%
40
35 Social security
30
25
Public bonds
20
Land preservation
Education and development
15
10 General administration
5
Commerce and industry
0
FY1995 97 99 01 03 05 07 09 11 13 15 17 19 21
A function-by-function breakdown of these expenditures showed that

social security expenditure accounted for the largest portion (36.9 percent),
followed by public bonds (17.1 percent), commerce and industry (12.8
percent), general administration (10.6 percent), education (10.2 percent),
and then land preservation and development (8.8 percent). Public bonds
are issued to compensate for shortages of national and local revenues.
Their issue volumes have increased mainly due to, for example, economic
stimulus measures and decreasing tax revenues after the bubble economy
ended at the beginning of 1990. The bankruptcy of the major American
securities firm Lehman Brothers in 2008 and the Great East Japan
Earthquake of 2011 led to a major economic downturn, and for 4 years
from fiscal 2009, bond issues continued to exceed tax revenue, but from
fiscal 2013 to 2019, tax revenue picked up and exceeded bond issues.
However, the spread of COVID-19 in 2020 caused a sudden contraction of
the economy, and a huge supplementary budget for fiscal 2020 was
financed by an additional issue of government bonds.
41
CHAPTER 4 FINANCE
Figure 4.4
National Government Bond Issue and Bond Dependency Ratio 1)
Trillion yen %
140 80
Bond dependency
ratio
120 (right scale) 70
Special deficit-financing 60
100 bonds (left scale) 2) 22.6
50
80
40
60 Construction bonds 8.7
(left scale) 9.2 30
15.0 86.0
40 11.4
7.6 8.4 7.0 6.6 8.9 6.6
20
6.5 7.3 8.1 9.1
53.8
48.5
20 36.9 34.7 36.0 10
34.4 33.8 31.9 28.4 29.1 26.3 26.3 27.4 29.1
0 0
FY2009 10 11 12 13 14 15 16 17 18 19 20 21 22 23
1) Based on settled figures until FY2021, supplementary budget for FY2022, and draft
budget for FY2023. 2) Excludes some special accounts.
42
CHAPTER 4 FINANCE
Japan's ratio of outstanding general government debt to GDP, a stock

measure in a fiscal context, is particularly high even compared to other
major industrialized countries.
Figure 4.5
Ratio of General Government Gross Debt to GDP
%
300
Japan
250
200
Canada Italy
U.S.A.
150 France
100
U.K.
50
Germany
0
2012 13 14 15 16 17 18 19 20 21 1) *22
1) The data for Japan indicates estimated figure.
(4) Tax
Taxes consist of national tax (income tax, corporation tax, etc.), which is
paid to the national government, and local tax, which is paid to the local
government of the place of payer's residence. The ratio of taxation burden,
which is the ratio of national and local taxes to national income, was 18.3
percent in fiscal 1975. This ratio gradually increased thereafter, reaching
27.7 percent in fiscal 1989. The ratio subsequently decreased due to the
decline in tax revenue arising from the recession that ensued after the
bubble economy ended, reaching 20.5 percent in fiscal 2003. In fiscal 2020,
it was 28.2 percent in terms of national and local taxes combined (17.3
percent for national tax and 10.9 percent for local tax). Japan's ratio is
43
CHAPTER 4 FINANCE
lower in comparison with other major industrial countries. However, the

consumption tax rate was raised from 8 to 10 percent on October 1, 2019
due to the need to transition Japan's social security system, which is
currently focused on benefits for the elderly, to an "all-generation type"
usable by anyone, from children and youth to the elderly.
Figure 4.6
Ratio of Taxation Burden to National Income by Country (Actual basis)
%
50
45
France
40
35 U.K.
Germany
30
25 U.S.A.
20
Japan
150
2001 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
2. Bank of Japan and Money Stock
As the central bank, the Bank of Japan (i) issues banknotes; (ii) manages
and stores treasury funds and provides loans to the government; (iii)
provides deposit and loan services to general financial institutions; and (iv)
implements monetary policies by adjusting the level of money stock to
promote the sound development of the economy.
44
CHAPTER 4 FINANCE
At the end of 2022, currency in circulation totaled 129.9 trillion yen (125.1
trillion yen in banknotes and 4.9 trillion yen in coins), up 2.3 percent from
the year before.
Table 4.4
Currency in Circulation (Outstanding at year-end)
(Billion yen)
Item 2018 2019 2020 2021 2022
Total .............................................. 115,208 117,695 123,381 127,026 129,923

Banknotes ................................... 110,363 112,742 118,328 121,964 125,068
Coins .......................................... 4,845 4,954 5,053 5,062 4,855
Source: Bank of Japan.
The Bank of Japan compiles and publishes statistics on the following

indices of money stock: (i) M1, or currency in circulation plus deposit
money deposited at depository institutions; (ii) M2, or currency in
circulation plus deposits deposited at domestically licensed banks, etc.;
(iii) M3, or currency in circulation plus deposits deposited at depository
institutions; and (iv) L, or M3 plus pecuniary trusts plus investment trusts
plus bank debentures plus straight bonds issued by banks plus commercial
paper issued by financial institutions plus government securities plus
foreign bonds. The average amounts outstanding of money stock in 2022
was 1,023 trillion yen in M1 and 1,201 trillion yen in M2.
Table 4.5
Money Stock 1) (Average amounts outstanding)
(Billion yen)
L
Year M2 M3 M1 Quasi-money CDs (Broadly-defined
liquidity)
2018 1,002,456 1,332,502 755,601 546,672 30,229 1,773,023

2019 1,026,199 1,359,455 795,672 534,908 28,875 1,802,558
2020 1,092,626 1,432,436 882,253 521,668 28,515 1,875,969
2021 1,162,693 1,511,682 968,976 508,400 34,307 1,980,161
2022 1,201,213 1,555,818 1,023,365 496,545 35,908 2,058,403
1) "Money stock" indicates the aggregate amount of money, including currency in circulation
and deposit money, held by money holders such as non-financial corporations, individuals, and
local governments.
45
CHAPTER 4 FINANCE
In January 2013, the government and the Bank of Japan decided to

strengthen policy coordination in order to overcome deflation and achieve
sustainable economic growth with stable prices. In April 2013, the Bank of
Japan changed the operating target for money market operations from the
uncollateralized overnight call rate to a monetary base to facilitate
quantitative easing. The Bank of Japan first introduced Quantitative and
Qualitative Monetary Easing (QQE) in April 2013; in January 2016, it
decided to introduce "QQE with a Negative Interest Rate". In September
2016, it was decided to introduce "QQE with Yield Curve Control" by
strengthening these two policy frameworks, in order to achieve as early as
possible the "price stability target" of a 2 percent year-on-year increase in
consumer prices. It was decided to continue an expansionary policy
regarding the monetary base until the actual year-on-year increase in the
consumer price index (excluding fresh foods) stably exceeds 2 percent.
Japan's monetary base is the amount of currency supplied by the Bank of

Japan. It is the combined total of banknotes in circulation, coins in
circulation, and current account deposit in the Bank of Japan. It was 680.4
trillion yen as of the end of April 2023, down 0.01 percent from the same
month of the previous year.
Table 4.6
Financial Markets (Interest rates, etc.)
(% per annum)
Average
Basic discount
Prime lending contract interest 10 years' newly
End of year rate and basic Call rates 1) rates on loans
issued Govt.
rates 2) bond yields
loan rate
and discounts 3)
2013 0.30 0.068 1.475 0.880 0.740
2014 0.30 0.066 1.475 0.850 0.320
2015 0.30 0.038 1.475 0.778 0.265
2016 0.30 -0.058 1.475 0.623 0.040
2017 0.30 -0.062 1.475 0.584 0.045
2018 0.30 -0.055 1.475 0.597 -0.005
2019 0.30 -0.068 1.475 0.602 -0.025
2020 0.30 -0.033 1.475 0.481 0.020
2021 0.30 -0.018 1.475 0.475 0.070
2022 0.30 -0.022 1.475 0.440 0.410
1) Uncollateralized overnight. 2) Principal banks. Short-term loans.
3) Outstanding loans and bills discounted. Short-term loans and discounts. Figures are those
of banking accounts of domestically licensed banks (excluding several banks) that conduct
transactions with the Bank of Japan.
46
CHAPTER 4 FINANCE
3. Financial Institutions
In addition to the Bank of Japan, Japan's financial system is comprised of

private and public financial institutions. Private financial institutions
include those that accept deposits (banks, credit depositories, agricultural
cooperatives, etc.) and those that do not (securities companies, insurance
companies, etc.).
In the course of the financial system reform, mergers and restructuring

progressed among major banks, resulting in their being reorganized into
three major financial groups. The number of regional banks and credit
depositories has also declined significantly due to the progress of corporate
mergers. As of the end of September 2022, in the number of offices
operated domestically, including the branches of financial institutions, post
offices had the largest network with 23,681 offices. Domestically licensed
banks, including city banks and regional banks, had a combined total of
13,488 offices and branches.
The fundamental role of the bank sector is to adjust the surplus and
deficiency of funds. The corporate sector has been in a fund surplus
throughout the 2022 year, and thus the percentage of loans to bank assets
has generally been on a downward trend.
47
CHAPTER 4 FINANCE
Figure 4.7
Assets of Domestically Licensed Banks (Banking accounts, end of year)
Trillion yen %
1,600 100
Others Loans
Stocks Corporate bonds
Local government bonds National debt
1,400 Deposits Ratio of loans to total (right scale)
80
1,200
1,000
60
800
40
600
400
20
200
0 0
2000 02 04 06 08 10 12 14 16 18 20 22
48
CHAPTER 4 FINANCE
4. Financial Assets
The Flow of Funds Accounts Statistics, which is a comprehensive set of

records of financial transactions, assets and liabilities, indicates that
financial assets in the domestic sectors totaled 8,977 trillion yen at the end
of March 2022. Of these assets, those of the domestic nonfinancial sector
were 4,112 trillion yen. Of this sector, the household sector (including the
business funds of individual proprietorships) had assets of 2,004 trillion
yen, in the forms of deposits, stocks and other financial assets. In Japan,
the household sector holds more than 50 percent of its financial assets in
cash and deposits.
Table 4.7
Financial Assets and Liabilities of Japan
(Billion yen)
Annual
March March
Sectors change
2021 2022
(%)
Financial assets
Domestic sectors ......................................................... 8,726,022 8,977,185 2.9
Financial institutions ................................................. 4,738,669 4,864,840 2.7
Domestic nonfinancial sector .................................... 3,987,352 4,112,345 3.1
Nonfinancial corporations ..................................... 1,263,747 1,314,573 4.0
General government ............................................. 703,523 728,364 3.5
Households (incl. individual proprietorships) ........ 1,958,522 2,004,459 2.3
Private nonprofit institutions serving households ... 61,561 64,949 5.5
Overseas ...................................................................... 824,381 853,308 3.5
Financial liabilities
Domestic sectors ......................................................... 8,352,537 8,552,795 2.4
Financial institutions ................................................. 4,551,708 4,712,006 3.5
Domestic nonfinancial sector .................................... 3,800,829 3,840,789 1.1
Nonfinancial corporations ..................................... 2,005,399 2,016,082 0.5
General government ............................................. 1,400,284 1,421,460 1.5
Households (incl. individual proprietorships) ........ 365,006 372,744 2.1
Private nonprofit institutions serving households ... 30,140 30,504 1.2
Overseas ...................................................................... 1,192,773 1,271,272 6.6
49
CHAPTER 4 FINANCE
5. Stock Market
Stock prices in Japan rose sharply in the second half of the 1980s,
spearheading the bubble economy. However, it started to fall in 1990
ahead of land prices. The Tokyo Stock Price Index (TOPIX) rose sharply
from the end of 1980 to the end of 1989, but suddenly dropped by the end
of 1992. There was some subsequent rebound, but 1998 saw a further drop
as a result of factors like financial worries due to the growth of
non-performing assets at banks. After that, the index repeatedly fell and
rose, but events such as the bankruptcy of the major American securities
firm Lehman Brothers and the Great East Japan Earthquake had a major
impact on corporate profits, and by the end of 2011, TOPIX had fallen to a
level roughly one-fourth that at the end of 1989. Since 2012, there has
been a major upturn as a result of the effects of various measures,
including a comprehensive economic policy package called "Abenomics".
Figure 4.8
Stock Price Index and Market Capitalization
(Tokyo Stock Exchange, end of year)
Trillion yen
800 3,000
Market
700 capitalization 2)
(left scale)
600
TOPIX 1)
(right scale) 2,000
500
400
300
1,000
200
100
0 0
198082 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 22
1) A market benchmark with functionality as an investable index, covering an extensive proportion of

the Japanese stock market. It is a free-float adjusted market capitalization-weighted index. It shows the
measure of current market capitalization assuming that market capitalization as of the base date
(January 4, 1968) is 100 points.
2) Until 2021, market capitalization indicates that of the First Section. For 2022, it indicates that of the
Prime Market.
Source: Tokyo Stock Exchange, Inc.
In 2012, the high yen in Japanese economy was corrected due to

50
CHAPTER 4 FINANCE
expectations toward anti-deflationary economic and fiscal policies by the

new government, and share prices soared. In April 2013, changes in
policies of the Bank of Japan were regarded as affecting stocks and
markets, and the Nikkei Stock Average at the end of 2013 was 16,291.31
yen, representing an increase of 56.7 percent as compared to that of the
end of 2012 (10,395.18 yen) and the first significant gain in 8 years.
Afterwards, the Nikkei Stock Average in April 2015 recovered to the
20,000 yen level for the first time in 15 years. The closing value at the end
of 2022 was 26,094.50 yen, down 2,697.21 yen, or 9.4 percent for the year,
the first decline in 4 years.
Table 4.8
Stock Prices (Tokyo Stock Exchange)
Total TOPIX 1) 4) Nikkei
Number Market
trading Tokyo stock Stock Average
Year of listed capitalization 1) 2)
value 2) 3) price index, (225 issues) 1)
companies 1) 2) (million yen)
(million yen) average (yen)
2000 1,447 352,784,685 242,632,346 1,283.67 13,785.69
2001 1,491 290,668,537 199,844,292 1,032.14 10,542.62
2002 1,495 242,939,136 190,869,955 843.29 8,578.95
2003 1,533 309,290,031 237,905,753 1,043.69 10,676.64
2004 1,595 353,558,256 323,918,214 1,149.63 11,488.76
2005 1,667 522,068,129 459,136,406 1,649.76 16,111.43
2006 1,715 538,629,548 644,308,788 1,681.07 17,225.83
2007 1,727 475,629,039 735,333,528 1,475.68 15,307.78
2008 1,715 278,988,813 568,538,950 859.24 8,859.56
2009 1,684 302,712,168 368,679,737 907.59 10,546.44
2010 1,670 305,693,030 354,598,763 898.80 10,228.92
2011 1,672 251,395,748 341,587,524 728.61 8,455.35
2012 1,695 296,442,945 306,702,280 859.80 10,395.18
2013 1,774 458,484,253 640,193,836 1,302.29 16,291.31
2014 1,858 505,897,342 576,525,070 1,407.51 17,450.77
2015 1,934 571,832,889 696,509,496 1,547.30 19,033.71
2016 2,002 560,246,997 643,205,780 1,518.61 19,114.37
2017 2,062 674,199,186 683,218,254 1,817.56 22,764.94
2018 2,128 562,121,332 740,746,041 1,494.09 20,014.77
2019 2,160 648,224,522 598,213,662 1,721.36 23,656.62
2020 2,186 666,862,093 671,671,658 1,804.68 27,444.17
2021 2,182 728,424,514 765,249,832 1,992.33 28,791.71
2022 1,838 676,270,419 605,604,601 1,891.71 26,094.50
1) End of year. 2) Until 2021, they indicate that of the First Section. For 2022, they indicate that of
the Prime Market. 3) The figure for 2022 excludes First Section trading value of 211,610,492
(million yen). 4) A market benchmark with functionality as an investable index, covering an
extensive proportion of the Japanese stock market. It is a free-float adjusted market capitalization-
weighted index. It shows the measure of current market capitalization assuming that market
capitalization as of the base date (January 4, 1968) is 100 points.
Source: Tokyo Stock Exchange, Inc.; Nikkei Inc.
51
CHAPTER 4 FINANCE
At the end of March 2022, the total number of individual stockholders

(individuals of Japanese nationality and domestic groups without corporate
status) in possession of stocks listed on the Tokyo/Nagoya/Fukuoka/
Sapporo Stock Exchanges totaled 64.6 million. In terms of value, the ratio
of stocks they possessed was 16.6 percent, down 0.2 percentage points
from the previous fiscal year. The ratio of Japanese stocks held by foreign
investors (non-Japanese corporations and individuals) was 30.4 percent in
terms of value, up 0.2 percentage points from the previous fiscal year.
A survey conducted by the Japan Securities Dealers Association (JSDA)

showed that 33.7 percent of 270 securities firms offered Internet trading at
the end of September 2022. Internet trading thus accounted for 22.9
percent of the total value of stock brokerage transactions from April to
September 2022.
52
Chapter 5
Agriculture, Forestry, and Fisheries
© KATO Masami
© KATO Masami
Rice field art.

Rice field art uses paddy fields as a canvas and rice plants of different colors to create
a huge picture. Seedlings such as ancient rice, whose leaves and ears are green,
purple, and yellow, are planted in a designed arrangement, and when the seedlings
grow, giant patterns and letters emerge on the paddy fields.
CHAPTER 5 AGRICULTURE, FORESTRY, AND FISHERIES
1. Overview of Agriculture, Forestry, and Fisheries

Over the course of Japan's economic growth, its agricultural, forestry and
fishing industries have employed fewer and fewer workers every year, and
their nominal GDP share has also dropped. The number of employed
persons decreased from 5.77 million in 1980 (10.4 percent of the total
employed persons) to 2.08 million in 2021 (3.1 percent), and the GDP
share of the industries fell from 3.6 percent in 1980 to 1.0 percent in 2021.
Figure 5.1
Number of Employed Persons 1) and
Percentage of Gross Domestic Product (Nominal prices) 2) for
Agriculture, Forestry, and Fisheries
Millions %
8 4.0
Gross domestic product

(GDP)
(right scale)
6 3.0
Employed persons
(left scale)
4 2.0
2 1.0
0 0.0
1980 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 21
1) 1980-2001 data: The 10th revision of the Japan Standard Industrial Classification (JSIC).
2002-2021 data: The 12th and 13th revisions of JSIC. 2) 1980-1993 data: 1993 SNA,
Benchmark year = 2000. 1994-2021 data: 2008 SNA, Benchmark year = 2015.
Source: Statistics Bureau, MIC; Economic and Social Research Institute, Cabinet Office.
54
2. Agriculture
(1) Agricultural Production
Japan's total agricultural output in 2021 was 8.84 trillion yen, down 1.1
percent from the previous year. Among this, crops yielded 5.38 trillion yen,
down 4.9 percent from the previous year. Livestock yielded 3.40 trillion
yen, up 5.2 percent from the previous year.
Table 5.1
Total Agricultural Output
(Billion yen)
Item 2017 2018 2019 2020 2021
Total ............................................ 9,274 9,056 8,894 8,937 8,838
Crops ........................................ 5,961 5,782 5,630 5,656 5,379
Rice ........................................ 1,736 1,742 1,743 1,643 1,370
Vegetables .............................. 2,451 2,321 2,152 2,252 2,147
Fruits and nuts ........................ 845 841 840 874 916
Livestock and its products ......... 3,252 3,213 3,211 3,237 3,405
Beef cattle .............................. 731 762 788 739 823
Dairy cattle ............................. 896 911 919 925 922
Pigs ........................................ 649 606 606 662 636
Chickens ................................ 903 861 823 833 936
Source: Ministry of Agriculture, Forestry and Fisheries.
55
Table 5.2
Agricultural Harvest
(Thousand tons)
Products 2017 2018 2019 2020 2021
Cereal grains
Rice ........................................... 7,824 7,782 7,764 7,765 7,564
Wheat ........................................ 907 765 1,037 949 1,097
Vegetables, sweet potatoes, and beans
Potatoes .................................... 2,395 2,260 2,399 2,205 2,175
Sweet potatoes .......................... 807 797 749 688 672
Soybeans ................................... 253 211 218 219 247
Cucumbers ................................ 560 550 548 539 551
Tomatoes .................................. 737 724 721 706 725
Cabbages ................................... 1,428 1,467 1,472 1,434 1,485
Chinese cabbages ....................... 881 890 875 892 900
Onions ....................................... 1,228 1,155 1,334 1,357 1,096
Lettuces ..................................... 583 586 578 564 547
Japanese radishes ....................... 1,325 1,328 1,300 1,254 1,251
Carrots ...................................... 597 575 595 586 636
Fruits
Mandarins .................................. 741 774 747 766 749
Apples ....................................... 735 756 702 763 662
Grapes ....................................... 176 175 173 163 165
Japanese pears ........................... 245 232 210 171 185
Industrial crops
Crude tea 1) ................................ 82 86 82 70 78
Sugar beets 2) ............................. 3,901 3,611 3,986 3,912 4,061
1) Production. 2) Area of Hokkaido prefecture.
(2) Agriculture Management Entity and Cultivated Land

In 2020, there were 1.076 million agriculture management entities (entities
producing agricultural products, or performing contract agricultural work,
where the area or number of animals involved in the production or work is
as stipulated), a decrease of around 302,000 entities (21.9 percent)
compared to 2015.
Among agriculture management entities, there were 1.037 million
individual management entities (non-corporate family management
entities), a decrease of around 303,000 entities (22.6 percent) compared to
2015. Group management entities (entities other than individual
56
management entities) increased by around 1,000 entities (2.8 percent) to

around 38,000 entities.
Table 5.3
Number of Agriculture Management Entities
(Thousand entities)
Agriculture Individual Group
Corporated
Year management management management
management
entities entities entities
entities
2010 1,679 1,644 36 22
2015 1,377 1,340 37 27
2020 1,076 1,037 38 31
Percent change (%)
2015 / 2010 -18.0 -18.5 4.9 25.3
2020 / 2015 -21.9 -22.6 2.8 13.3
Average agriculture gross income for all farming types and all agriculture
management entities (individual management entities and corporated
management entities) in 2021 was 10.77 million yen, an increase of 8.5
percent compared to the previous year. On the other hand, agriculture
expenditures increased 9.5 percent compared to the previous year to 9.52
million yen. As a result, agriculture income increased by 1.5 percent
compared to the previous year to 1.25 million yen.
Japan's cultivated acreage shrank year after year from 6.09 million
hectares in 1961 to 4.33 million hectares in 2022. After 1989, the
cultivated acreage has continued to decrease due to diversion into
residential land, ruined land continuously resulting from devastated land,
etc.
57
3. Forestry
As of 2017, Japan's forest land area is 25.05 million hectares
(approximately 70 percent of the entire surface area of the country).
Among Japan's forests, natural forests account for 13.48 million hectares,
while planted forests make up 10.20 million hectares.
Japan's forest growing stock is 5,242 million cubic meters as of 2017,
3,308 million cubic meters of which are from planted forests. The stock
rose mainly with the increase of that from planted forests on deforested
sites right after World War II and during the period of rapid economic
growth. Such forests are in a period of full-scale use as resources. Use of
lumber also contributes to the sustained manifestation of the diverse
functions of forests, such as mitigation of global warming, and
revitalization of regional economies. In recent years, efforts have been
made to use lumber in diverse ways beyond the housing field, such as for
structures and interiors/exteriors in the non-housing field, including both
public and private sector buildings, and as woody biomass for energy.
Table 5.4
Forest Land Area and Forest Resources (2017)
National Non-national forest
Item Total
forest Public Private Others
Forest land area (1,000 ha) ............. 25,048 7,659 2,995 14,347 48
Forest growing stock (million m3) .. 5,242 1,226 616 3,394 6
Planted forest
Land area (1,000 ha) ................. 10,204 2,288 1,334 6,569 13
Growing stock (million m3) ...... 3,308 513 397 2,396 3
Natural forest
Land area (1,000 ha) ................. 13,481 4,733 1,531 7,188 28
Growing stock (million m3) ...... 1,932 712 218 999 3
After reaching a low of 16.9 million cubic meters in 2002, domestic wood
supply is on a rising trend, against the background of an enrichment of
forest resources, increase in the use of domestic timber such as Japanese
cedar for plywood material, increase in use of fuel timber in wood biomass
power generation facilities, etc.
58
Figure 5.2
Wood Supply and Self-Sufficiency Rate 1)
Million cubic meters %

140 100
Self-sufficiency rate Imported wood
(right scale) (left scale)
120 Domestic wood
(left scale)
80
100
60
80
60
40
40
20
20
0 0
1960 65 70 75 80 85 90 95 00 05 10 15 20 21
1) Wood supply refers to the sum of wood for industrial use, fuel wood and wood for
mushroom production converted into a log equivalent.
Securing a forestry labor force will be vital not only for forestry, but also
for creating employment based on local resources, and revitalizing
mountain villages by promoting permanent residence. The number of
workers engaged in forestry occupations such as stand tending and tree
felling is in a declining trend over the long term, and decreased by around
7,000 workers from around 52,000 in 2005 to around 45,000 in 2015.
59
4. Fisheries
(1) Fishery Production
Japan is facing a problem in that its fishery production is in a declining
trend over the long term. This is likely due to a variety of factors, such as
changes in the marine environment and more intensive operations by
foreign fishing boats in waters surrounding Japan. There are thought to be
many fishery resources whose decline could have been prevented or
mitigated with more appropriate resource management.
After peaking in 1984, Japan's fishery output decreased rapidly until
around 1995, and has continued to decrease gradually afterwards. Its 2022
fishery production totaled 3.86 million tons.
Figure 5.3
Production by Type of Fishery
Million tons
14
Inland water fisheries
and aquaculture
12
10
Marine aquaculture
8 Coastal fisheries
6
Offshore fisheries
4
2
Pelagic fisheries
0
1980 85 90 95 00 05 10 111) 15 20 22
1) Excluding figures lost in Iwate, Miyagi and Fukushima prefectures because of the Great East
Japan Earthquake.
60
Table 5.5
Production by Fishery Type and Major Kinds of Fish
(Thousand tons)
*
Fishery type and species 2018 2019 2020 2021 2022
Total ....................................... 4,427 4,204 4,236 4,172 3,859
Marine fishery ....................... 3,366 3,235 3,215 3,194 2,894
Tunas ................................. 165 161 177 149 109
Skipjack, Frigate mackerel ..... 260 237 196 252 182
Sardine ............................... 524 561 698 640 613
Mackerels ........................... 545 452 390 442 316
Shellfishes .......................... 350 386 382 389 373
Crabs .................................. 24 23 21 21 20
Squids ................................ 84 73 82 64 58
Marine aquaculture ................ 1,005 915 970 927 911
Yellowtails ......................... 138 136 138 134 114
Oysters ............................... 177 162 159 159 165
Laver ("nori") ..................... 284 251 289 237 232
Seaweed ("wakame") .......... 51 45 54 44 47
Pearl (tons) ......................... 21 19 16 13 13
Inland water fishery ............... 27 #22 22 19 23
Salmons, trouts ................... 8 #7 7 5 10
Sweet fish ........................... 2 #2 2 2 2
Shellfishes .......................... 13 #10 9 9 8
Inland water aquaculture ....... 30 31 29 33 31
Eel ..................................... 15 17 17 21 19
Trouts ................................ 7 7 6 6 6
Sweet fish ........................... 4 4 4 4 4
(2) Fishery Workers

The number of fishery workers (those aged 15 years old and over who
have worked at sea for 30 days or more in the past year) continues to
decline. In 2021, the number of such workers was 129,320 workers, down
4.7 percent.
61
Table 5.6
Enterprises and Workers Engaged in the Marine Fishery/
Aquaculture Industry
Enterprises Workers
Year Individual Corporate Self-
Total Total Hired
households entities employed
2005 126,020 118,930 7,090 222,170 … …
2010 103,740 98,300 5,440 202,880 128,270 74,610
2015 85,210 80,570 4,640 166,610 100,520 66,100
2020 69,560 65,310 4,250 135,660 75,810 59,850
2021 64,900 60,790 4,110 129,320 71,830 57,500
While the aging of workers and fishing vessels progresses fisheries have
been gaining attention as a place for employment, based on the
diversification of values regarding work and life, and support is being
provided for new fishery workers.
5. Self-Sufficiency in Food
Japan's food self-sufficiency ratio in terms of calories has shown a
downward trend over the long term. It fell to 40 percent in fiscal 1998, and
has fluctuated roughly around that level since. It was 38 percent in fiscal
2021. The major reasons behind the low food self-sufficiency ratio are a
decline in consumption of rice, for which demand can be met with
domestic production, a decline in calories supplied by domestic rice, and a
decline in calories supplied through domestic production of other items
such as marine products.
In fiscal 2021, the self-sufficiency ratio per item (on weight basis) was 98
percent for rice, 17 percent for wheat, 8 percent for beans, 79 percent for
vegetables, 39 percent for fruits, 53 percent for meat, and 57 percent for
seafood. While almost completely self-sufficient in rice, the staple food of
its people, Japan rely almost entirely on imports for the supply of wheat
and beans.
62
Table 5.7
Domestic Production, Supplies for Domestic Consumption,
Food Self-Sufficiency Ratio, and Imports
Domestic Supplies for domestic Food self-sufficiency

Imports
Fiscal year production consumption Ratio
(1,000 t)
(1,000 t) (1,000 t) (%)
Rice
2005 8,998 9,222 95 978
2010 8,554 9,018 97 831
2015 8,429 8,600 98 834
2020 8,145 7,855 97 814
2021* 8,226 8,195 98 878
Wheat
2005 875 6,213 14 5,292
2010 571 6,384 9 5,473
2015 1,004 6,583 15 5,660
2020 949 6,412 15 5,521
2021* 1,097 6,421 17 5,375
Beans
2005 352 4,790 7 4,482
2010 317 4,035 8 3,748
2015 346 3,789 9 3,511
2020 290 3,843 8 3,411
2021* 312 3,897 8 3,464
Vegetables
2005 12,492 15,849 79 3,367
2010 11,730 14,508 81 2,783
2015 11,856 14,776 80 2,941
2020 11,440 14,367 80 2,987
2021* 11,015 13,887 79 2,895
Fruits
2005 3,703 9,036 41 5,437
2010 2,960 7,719 38 4,756
2015 2,969 7,263 41 4,351
2020 2,674 7,104 38 4,504
2021* 2,599 6,660 39 4,157
Meat
2005 3,045 5,649 54 2,703
2010 3,215 5,769 56 2,588
2015 3,268 6,035 54 2,769
2020 3,449 6,531 53 3,037
2021* 3,484 6,594 53 3,138
Seafood
2005 5,152 10,201 51 5,782
2010 4,782 8,701 55 4,841
2015 4,194 7,663 55 4,263
2020 3,772 6,838 55 3,885
2021* 3,770 6,641 57 3,650
63
Japan's present food self-sufficiency ratio is the lowest among major

industrialized countries, and Japan is thus the world's leading importer of
food products.
Figure 5.4
Trends in Food Self-Sufficiency Ratio of Major Countries 1)
(On calorie supply basis)

%
300
250
Canada
▼
200
150
U.S.A.
France ▼
▼
Germany
100
U.K. Switzerland
▼
50
Japan
0
2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
1) Estimates except for Japan.
64
Chapter 6
Manufacturing and Construction
© TAZAKI Ryuichi
© TAZAKI Ryuichi
Yokohama Bay Bridge.
"Yokohama Bay Bridge" is the common name for the Yokohama Port Crossing
Bridge. It connects Daikoku Pier, an artificial island at the port entrance, and a jetty
of Honmoku Pier. The total length is 860 meters. It opened in 1989.
CHAPTER 6 MANUFACTURING AND CONSTRUCTION
1. Overview of the Manufacturing Sector

The proportion of added value produced in Japan's manufacturing sector to
its nominal GDP has been around 20 percent recently, and the sector has a
large ripple effect on other sectors.
In years past, Japan's manufacturing industry has faced a variety of
unforeseeable circumstances and drastic changes in the business
environment. These include the Nixon Shock and two oil crises in the
1970s, the strong yen recession following the Plaza Accord in the 1980s,
the bursting of the bubble economy and the Asian currency crisis in the
1990s, and the bankruptcy of the major American securities firm Lehman
Brothers, the European debt crisis, and the Great East Japan Earthquake in
the 21st century. Since 2020, the environment surrounding the
manufacturing industry has continued to change due to factors such as the
COVID-19 pandemic, increased risk of supply chain breakdowns brought
on by instability in the international situation due to events like Russia's
invasion of Ukraine, and the rising global trend toward decarbonization.
Business models themselves have also changed in the manufacturing
industry due to increasing utilization of digital technology and data at
manufacturing sites, and there are still many issues that must be addressed
for the Japanese manufacturing industry to maintain and strengthen its
competitiveness.
In 2021, there were 176,858 establishments (with 4 or more persons
engaged) in the manufacturing sector. By industry, "fabricated metal
products" had the most, with 24,094 establishments (component ratio of
13.6 percent), followed by "food" with 21,624 establishments (12.2
percent) and "production machinery" with 18,138 establishments (10.3
percent).
In 2021, there were 7.47 million persons engaged, and by industry, "food"
had the most, with 1.09 million persons engaged (component ratio of 14.7
percent), followed by "transportation equipment" with 1.02 million
persons engaged (13.6 percent) and "production machinery" with 0.61
million persons engaged (8.1 percent).
The value of manufactured goods shipments in 2020 was 302.00 trillion
yen, and by industry, "transportation equipment" had the most at 60.18
trillion yen (component ratio of 19.9 percent), followed by "food" at 29.61
trillion yen (9.8 percent) and "chemical and allied products" at 28.60
66
trillion yen (9.5 percent).

Table 6.1
Establishments, Persons Engaged, and Value of Manufactured Goods
1)
Shipments of the Manufacturing Industry
Value of manu-
Number of Number of
factured goods
establish- persons
Industries shipments
ments engaged (2020)
(2021) (2021)
(billion yen)
Manufacturing ...................................................... 176,858 7,465,556 302,003
Food ................................................................. 21,624 1,094,454 29,606
Beverages, tobacco and feed ............................. 4,093 102,880 9,276
Textile products ................................................ 9,448 219,843 3,452
Lumber and wood products 2) ........................... 4,546 86,067 2,738
Furniture and fixtures ....................................... 4,241 86,078 2,000
Pulp, paper and paper products ......................... 5,043 179,189 7,096
Printing and allied industries ............................. 9,306 235,105 4,576
Chemical and allied products ............................ 4,978 377,971 28,603
Petroleum and coal products ............................. 979 28,027 11,114
Plastic products 3) ............................................. 11,680 440,660 12,574
Rubber products ............................................... 2,009 111,724 2,982
Leather tanning, leather products and fur skins ........ 863 16,903 264
Ceramic, stone and clay products ...................... 9,058 232,706 7,558
Iron and steel .................................................... 4,213 218,553 15,072
Non-ferrous metals and products ...................... 2,533 141,077 9,424
Fabricated metal products ................................. 24,094 582,642 15,020
General-purpose machinery .............................. 6,555 318,401 11,424
Production machinery ....................................... 18,138 606,843 19,554
Business oriented machinery ............................. 3,786 209,694 6,387
Electronic parts, devices and electronic circuits ........ 3,841 412,146 14,593
Electrical machinery, equipment and supplies .... 8,191 480,830 17,819
Information and communication electronics
equipment ....................................................... 1,135 112,986 6,417
Transportation equipment ................................. 9,718 1,017,610 60,178
Miscellaneous manufacturing industries ............ 6,786 153,167 4,276
1) Establishments with 4 or more persons engaged. 2) Excluding furniture.
3) Excluding plastic furniture, plastic plate making for printing, etc., which are included in other
industrial classification.
67
With regard to the "Indices on Mining and Manufacturing" (2015

average=100), the production index for 2022 was 95.6, down 0.1 percent
from the previous year, while shipments stood at 93.4, a decrease of 0.3
percent from the year before.
Table 6.2
Indices on Mining and Manufacturing (2022)
(2015 average =100)
1)
Production Shipments Inventory 2) Inventory Ratio 3)
Industries Annual Annual Annual Annual
growth growth growth growth
(%) (%) (%) (%)
Mining and manufacturing ....................... 95.6 -0.1 93.4 -0.3 101.0 3.3 120.2 7.1
Manufacturing ........................................... 95.7 0.0 93.4 -0.3 101.0 3.3 120.1 7.0
Iron, steel and non-ferrous metals ............. 89.6 -4.8 90.2 -4.0 102.4 -1.7 121.2 12.5
Iron and steel .......................................... 86.5 -6.7 86.5 -6.0 99.0 -4.7 123.8 12.9
Fabricated metals ...................................... 89.2 -0.9 88.8 -1.2 100.0 16.0 114.7 9.1
Production machinery ............................... 125.8 8.5 127.5 9.2 85.6 -2.3 92.2 -4.1
General-purpose and
business oriented machinery ...................... 103.1 3.3 101.2 3.1 138.8 9.5 161.2 11.4
General-purpose machinery .................... 103.5 2.8 104.8 2.4 125.7 1.9 120.8 9.0
Electronic parts and devices ...................... 107.4 -2.7 105.0 2.1 80.9 12.0 90.9 28.9
Electrical machinery, and information and
communication electronics equipment ....... 93.0 -1.3 92.5 -3.3 114.1 19.4 148.1 19.0
Electrical machinery ............................... 101.6 1.3 100.3 -0.3 124.7 18.2 146.6 15.9
Information and communication
electronics equipment ............................. 72.0 -9.0 73.1 -12.1 75.2 27.9 152.8 29.3
Transport equipment ................................ 85.1 -0.8 85.3 -1.3 83.5 3.9 104.4 8.5
Ceramics, stone and clay products ............ 88.1 -5.4 89.0 -5.1 100.2 3.8 123.3 9.4
Chemicals ................................................. 101.1 1.4 96.1 -2.1 113.8 6.3 123.0 10.2
Petroleum and coal products ..................... 84.1 6.9 82.7 3.8 92.0 1.3 107.9 -7.2
Plastic products ........................................ 98.6 -2.0 97.9 -2.8 120.9 9.2 122.6 12.1
Pulp, paper and paper products ................. 90.5 -1.0 88.3 -0.3 89.8 -5.0 112.3 -2.7
Foods and tobacco ................................... 95.7 -1.2 93.5 -0.8 82.7 -13.9 135.6 -6.1
Other manufacturing ................................. 84.6 -0.9 84.4 -1.2 97.6 0.8 111.1 0.9
Mining ........................................................ 82.9 -4.3 93.4 -2.7 106.5 1.0 124.1 -1.1
(Reference)
Electricity, gas, heat supply
and water .................................................... 100.5 1.9 100.7 1.9 - - - -
1) Value added weights. 2) End of the year. 3) Inventory ratio = Inventory quantity / Shipments quantity.
68
Figure 6.1
Trends in Indices on Mining and Manufacturing 1)
(2015 average =100)

160
140 Inventory ratio 3)

Production 2)
120
100
▲
Inventory 4)
80
Shipments
60
40
Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ Ⅰ Ⅱ Ⅲ Ⅳ
2016 17 18 19 20 21 22
1) Seasonal adjustment indices. 2) Value added weights.

3) Inventory ratio = Inventory quantity / Shipments quantity. 4) End of the quarter.
2. Principal Industries in the Manufacturing Sector

This section describes the major industries in the manufacturing sector. For
each industry, (a) is described by the "2021 Economic Census for Business
Activity (with 4 or more persons engaged)", and (b) is described by the
"Indices on Mining and Manufacturing" (2015 average = 100).
(1) Machinery Industry

(A) Transport Equipment Industry
(a) In 2021, a total of 9,718 establishments employed 1,017,610 persons,
and shipped 60.2 trillion yen worth of products in 2020.
(b) In 2022, production and shipments decreased by 0.8 percent and 1.3
69
percent, respectively, from the previous year, representing their fourth

consecutive year of decrease. These decreases (in both production and
shipments) were due to a decrease in "passenger cars", "car body and
automobile parts", etc.
(B) Production Machinery Industry

(a) In 2021, a total of 18,138 establishments employed 606,843 persons,
(b) In 2022, production and shipments increased by 8.5 percent and 9.2
percent, respectively, from the previous year, representing their second
consecutive year of increase. These increases (in both production and
shipments) were due to an increase in "semiconductor and flat-panel
display", "construction and mining machinery", etc.
(C) Electrical Machinery Industry

(a) In 2021, a total of 8,191 establishments employed 480,830 persons, and
shipped 17.8 trillion yen worth of products in 2020.
(b) In 2022, production increased by 1.3 percent and shipments decreased
by 0.3 percent from the previous year. This marked the second consecutive
year of increase in production, and the first decrease in 2 years in
shipments. The increase in production was due to an increase in "electrical
rotating machinery", "air conditioning and housing related equipment", etc.
The decrease in shipments was due to a decrease in "batteries", "wiring
instruments, electric lamps and lighting fixtures", etc.
(D) Electronic Parts and Devices Industry

(b) In 2022, production decreased by 2.7 percent and shipments increased
by 2.1 percent from the previous year. This marked the first decrease in 2
years in production and the second consecutive year of increase in
shipments. The decrease in production was due to a decrease in "electronic
70
devices" and "electronic parts". The increase in shipments was due to an

increase in "integrated circuits", "electronic circuit", etc.
(E) General-Purpose Machinery Industry

(b) In 2022, production and shipments increased by 2.8 percent and 2.4
percent, respectively, from the previous year, representing their second
consecutive years of increase. These increases (in both production and
shipments) were due to an increase in "pumps and compressors", "boilers
and power units", etc.
(F) Information and Communication Electronics Equipment Industry

percent, respectively, from the previous year, representing their first
decrease in 2 years. These decreases (in both production and shipments)
were due to a decrease in "consumer electronics", "radio communication
equipment", etc.
(2) Chemical Industry

(b) In 2022, production increased by 1.4 percent and shipments decreased
by 2.1 percent from the previous year. This marked the second consecutive
year of increase in production, and the first decrease in 2 years in
shipments. The increase in production was due to an increase in
"cosmetics" and "detergents and surfactants". The decrease in shipments
was due to a decrease in "plastic", "petrochemical base products", etc.
71
(3) Iron and Steel Industry

decrease in 2 years. The decrease in production was due to a decrease in
"hot rolled steel", "iron and steel crude products", etc. The decrease in
shipments was due to a decrease in "hot rolled steel", "cold finished steel",
etc.
(4) Fabricated Metals Industry

(a) In 2021, a total of 24,094 establishments employed 582,642 persons,
decrease in 2 years. These decreases (in both production and shipments)
were due to a decrease in "cans", "metal products of building", etc.
72
3. Construction
The construction industry is indispensable in supporting the development
of social capital, and fulfills a large role in building a vibrant future for
Japan, such as through urban regeneration and regional revitalization. It
also plays an extremely important role as a "local guardian" in disaster
recovery, disaster prevention/reduction, deterioration countermeasures, etc.
Construction investments at nominal prices was on a declining trend after
reaching a peak of 84 trillion yen in fiscal 1992, and fell to about half of
this peak (42 trillion yen) in fiscal 2010. Since then, they have been on a
recovery trend due to such factors as the recovery from the Great East
Japan Earthquake.
Construction investments in fiscal 2021 amounted to 66.6 trillion yen at
nominal prices, up 1.9 percent compared to the previous fiscal year; they
totaled 58.9 trillion yen at constant fiscal 2015 prices, down 2.7 percent
from the previous fiscal year.
A breakdown of construction investment (nominal prices) shows that
building construction totaled 42.6 trillion yen (up 5.1 percent from the
previous fiscal year), while civil engineering works amounted to 24.0
trillion yen (down 3.3 percent).
In terms of public and private construction investment (nominal prices) in
fiscal 2021, public investment amounted to 23.4 trillion yen (down 4.3
percent from the previous fiscal year), while private investment totaled
43.2 trillion yen (up 5.6 percent). Public investment accounted for 35.1
percent of total construction investment, while private investment
accounted for 64.9 percent.
73
Table 6.3
Construction Investment (Nominal prices)
(Billion yen)
Item FY2018 FY2019 FY2020* FY2021*
Total .............................................. 61,827 62,328 65,360 66,600
Building construction ................... 40,486 40,182 40,530 42,580
Dwellings ................................... 17,258 16,748 15,680 16,470
Public sector ............................ 521 436 420 360
Private sector ........................... 16,737 16,312 15,260 16,110
Non-dwellings ............................ 15,399 15,538 14,530 14,820
Public sector ............................ 3,878 3,908 4,030 4,000
Private sector ........................... 11,522 11,631 10,500 10,820
Extension and renovation ........... 7,828 7,896 10,320 11,290
Public sector ............................ 1,305 1,406 1,920 1,930
Private sector ........................... 6,523 6,489 8,400 9,360
Civil engineering works ................ 21,342 22,146 24,830 24,020
Public sector .............................. 15,887 16,730 18,060 17,100
Private sector ............................. 5,455 5,416 6,770 6,920
Total
Public investment ......................... 21,591 22,480 24,430 23,390
Private investment ........................ 40,236 39,848 40,930 43,210
Building construction
Civil engineering works
In 2022, the number of new construction starts for dwellings (in the case of
apartment buildings, the number of apartment units) increased 0.4 percent
from the previous year to 0.86 million units, representing an increase for
the second consecutive year. In terms of owner-occupant relations, the
number of occupier-owned housing units decreased, but this was due to
increases in the number of housing units for rent and the number of
housing units built for sale.
The floor space (public and private) of the entire building whose
construction started in 2022 was 119.47 million square meters, down 2.3
percent compared to the previous year.
74
Table 6.4
Building Construction Started by Types of Investor,
Dwellings and Industries, and Structure
Floor space Construction cost
Types (1,000 m2) (billion yen)
2021 2022 2021 2022
Total ............................................. 122,239 119,466 26,261 26,747
Investor
Public ......................................... 5,372 4,204 1,762 1,435
Private ....................................... 116,866 115,263 24,499 25,312
Dwellings and Industries
Dwelling .................................... 73,779 72,263 14,954 15,326
Non-dwelling ............................. 48,460 47,203 11,306 11,421
Structure
Wooden ..................................... 53,100 49,537 9,148 8,729
Non-wooden .............................. 69,138 69,930 17,112 18,018
75
Chapter 7
Energy
© SUZUKI Michio
Cosmos flowers blooming under the 138-meter high observation tower of Kiso
Sansen Park. Since ancient times, the Kiso, Nagara, and Ibi Rivers have been called
the Kiso Sansen (Kiso Three Rivers), and their catchment area is 9,100 square
kilometers. Due to modern hydroelectric dams, supply of post-war municipal and
irrigation water, and other uses, the river has become a foundation of the
development of industry, economics, and other spheres in the Chukyo area.
CHAPTER 7 ENERGY
1. Supply and Demand

Japan is dependent on imports for 86.7 percent of its energy supply. Since
experiencing the two oil crises of the 1970s, Japan has taken measures to
promote energy conservation, introduce alternatives to petroleum such as
nuclear power, natural gas, coal, etc., and secure a stable supply of
petroleum through stockpiling and other measures. As a result, its
dependence on petroleum declined from 75.5 percent in fiscal 1973 to 40.3
percent in fiscal 2010. However, since the Great East Japan Earthquake,
the percentage of fossil fuels has been increasing, as a substitute for
nuclear power as fuel for power generation. The level of dependence on
petroleum, which had been on a declining trend, increased to 44.5 percent
in fiscal 2012. However, it is once again on a declining trend as the switch
to LNG power and renewable energy progresses.
In fiscal 2021, the domestic supply of primary energy in Japan was 18,670
petajoules, up 4.1 percent from the previous fiscal year. Its breakdown
was: 36.0 percent in petroleum, 25.8 percent in coal, 21.4 percent in
natural gas and city gas, 3.6 percent in hydro power, and 3.2 percent in
nuclear power. Other sources were also used, including energy from waste,
geothermal, and natural energy (photovoltaic, wind power, biomass energy,
etc.).
Energy units
Joule (J) is employed as a common unit (International System of Units: SI)

for energy across all energy sources in presenting international statistical
information. The unit Petajoule (PJ: 1015 or quadrillion joules), etc. is used
here to reduce the number of digits. The energy of one kiloliter of
petroleum is calculated using the following formulae:
1 kiloliter of petroleum = 3.87×1010 joules

1 gigajoule = 109 joules
1 petajoule = 1015 joules
1 exajoule = 1018 joules
Petroleum is traded internationally using the volume unit of barrels. One

barrel equals approximately 158.987 liters.
77
CHAPTER 7 ENERGY
The government has been working to construct a new energy

supply-demand structure oriented toward stable supply of energy and
lowering energy costs. In this process, energy-saving and renewable
energy that takes global warming into consideration has been introduced,
and aims are being made toward reducing dependency on nuclear power.
Figure 7.1
Domestic Supply of Primary Energy by Energy Source 1)
Petajoules
30,000
Others 2)
Nuclear 3)
25,000
Hydro
20,000
Natural gas 4)
15,000
Coal
10,000
Petroleum
5,000
0
FY1965 70 75 80 85 90 95 00 05 10 15 20 21
1) A different statistical method was used for the figures since FY1990. 2) Photovoltaic,
wind power, geothermal energy, etc. 3) In fiscal 2014, the domestic supply of nuclear energy
was zero due to the suspended operation of all nuclear power plants in Japan. 4) Natural gas and
city gas.
Source: Agency for Natural Resources and Energy.
78
CHAPTER 7 ENERGY
Table 7.1
Trends in Domestic Supply of Primary Energy and Percentage
by Energy Source
(Petajoules)
Item FY2005 FY2010 FY2015 FY2020 FY2021
Domestic supply of primary energy .. 22,905 21,995 20,016 17,942 18,670
1)
Energy self-sufficiency (%) .......... 19.6 20.2 7.3 11.3 13.3
Petroleum ....................................... 10,691 8,858 8,138 6,532 6,720
Coal ............................................... 4,782 4,997 5,154 4,419 4,808
Natural gas and city gas .................. 3,291 3,995 4,657 4,272 3,998
Hydro ............................................. 671 716 726 663 673
Nuclear .......................................... 2,660 2,462 79 326 605
Others 2) ......................................... 809 966 1,262 1,729 1,866
Percentage
Petroleum ....................................... 46.7 40.3 40.7 36.4 36.0
Coal ............................................... 20.9 22.7 25.8 24.6 25.8
Natural gas and city gas .................. 14.4 18.2 23.3 23.8 21.4
Hydro ............................................. 2.9 3.3 3.6 3.7 3.6
Nuclear .......................................... 11.6 11.2 0.4 1.8 3.2
Others 2) ......................................... 3.5 4.4 6.3 9.6 10.0
1) Domestic production of primary energy (including nuclear) / Domestic supply of primary
energy × 100. 2) Photovoltaic, wind power, geothermal energy, etc.
Figure 7.2
International Comparison of Energy Consumption/GDP 1) (2019)
(Japan = 1)
0 1 2 3 4 5 6 7
U.K.
Japan
Germany
France
U.S.A.
Canada
Korea, Rep. of
Indonesia
China
Thailand
India
Russia
1) Primary energy consumption (tons of oil equivalent) / Real GDP (2010 U.S. dollars).
79
CHAPTER 7 ENERGY
Energy consumption per GDP is lower in Japan than in other industrialized

countries. This indicates that Japan is one of the most energy-efficient
countries in the world.
Energy consumption in Japan was suppressed due to greater energy
conservation brought on by two oil shocks in the 1970s. After that,
consumption increased until the 1990s due to a decrease in crude oil prices.
However, in the 2000s, as crude oil prices rose again, final energy
consumption peaked in fiscal 2005, and then started decreasing. In fiscal
2021, real GDP increased by 2.6 percent while final energy consumption
only increased by 1.6 percent, compared to the previous fiscal year.
Figure 7.3
Trends in Final Energy Consumption and Real GDP 1)
Exajoules Trillion yen
18 Real GDP (right scale) 2) 600
15 500
12 400
9 300
6 200
3 100
0 0
FY 1975 80 85 90 95 00 05 10 15 2021
20 21
1) A different statistical method was used for the figures since FY1990. 2) Figures are based
on 2015 standards.
Source: Cabinet Office; Agency for Natural Resources and Energy.
Final energy consumption in fiscal 2021 increased by 1.6 percent from the
previous fiscal year. By sector, it increased in the industry sector,
commercial industry sector, and transportation sector, while decreasing in
the residential sector.
80
CHAPTER 7 ENERGY
Figure 7.4
Trends in Final Energy Consumption by Sector 1)
Exajoules
18
15
Residential
12 Commercial Industry
9 Transportation
3 Industry
0
FY1965 70 75 80 85 90 95 00 05 10 15 20 21
1) A different statistical method was used for the figures since FY1990.
Figure 7.5
Final Energy Consumption by Country (2020)
Petajoules Gigajoules
100,000 75,000 50,000 25,000 0 0 50 100 150 200 250
China
U.S.A.
Total India Per capita

Russia
Japan
Brazil
Germany
Iran
Source: United Nations.
81
CHAPTER 7 ENERGY
2. Electric Power
Approximately half of Japan's primary energy supply of petroleum, coal
and other energy sources is converted into electric power.
Electricity output (including in-house power generation) in Japan totaled
970 billion kWh in fiscal 2021, up 2.2 percent from the previous fiscal
year. Of this total, thermal power accounted for 80.0 percent; hydro power,
9.0 percent; nuclear power, 7.0 percent.
Table 7.2
Trends in Electricity Output and Power Consumption 1)
(Million kWh)
Item FY2005 FY2010 FY2015 FY2020 FY2021
Electricity Output
Total ............................................... 1,157,926 1,156,888 1,024,179 948,979 970,249
Thermal .......................................... 761,841 771,306 908,779 789,725 776,326
Hydro ............................................. 86,350 90,681 91,383 86,310 87,632
Nuclear ........................................... 304,755 288,230 9,437 37,011 67,767
2)
Others .......................................... 4,980 6,671 14,580 35,933 38,524
Percentage
Total ............................................... 100.0 100.0 100.0 100.0 100.0
Thermal .......................................... 65.8 66.7 88.7 83.2 80.0
Hydro ............................................. 7.5 7.8 8.9 9.1 9.0
Nuclear ........................................... 26.3 24.9 0.9 3.9 7.0
Others 2) .......................................... 0.4 0.6 1.4 3.8 4.0
Electricity Power Consumption 3)
Total ............................................... 1,043,800 1,056,441 955,345 935,491 956,666
Generated by electric power suppliers ... 918,265 931,059 841,542 863,159 881,516
Consumption of in-house generation ..... 125,535 125,382 113,803 72,332 75,150
1) Including in-house generation. 2) Photovoltaic, wind power, geothermal energy, etc.
3) Changes were made to the categorization of Electricity Suppliers since FY2016.
82
CHAPTER 7 ENERGY
3. Gas
Gas production was 1,633 petajoules in fiscal 2021, up 3.7 percent from
the previous fiscal year. Of this total, natural gas plus vaporized liquefied
natural gas accounted for 95.8 percent; and the remaining 4.2 percent was
made up of petroleum gases, such as vaporized liquefied petroleum gas
and other petroleum-based gas. Gas purchases for fiscal 2021 totaled 702
petajoules.
Gas sales for fiscal 2021 totaled 1,723 petajoules, or a year-on-year growth
of 4.1 percent. Of this total, 59.2 percent was sold to industry, 24.1 percent
to residential use, and 9.0 percent to the commercial sector.
Table 7.3
Trends in Production and Purchases, and Sales of Gas 1) 2)
(Petajoules)
Item FY2010 FY2015 FY2020 FY2021
3)
Production and purchases ............... 1,547 1,610 2,204 2,335
Production ....................................... 1,288 (100.0) 1,372 (100.0) 1,574 (100.0) 1,633 (100.0)
4)
Petroleum gases .......................... 46 (3.6) 48 (3.5) 57 (3.6) 68 (4.2)
Natural gas and
vaporized liquefied natural gas 5) ... 1,241 (96.4) 1,324 (96.5) 1,517 (96.4) 1,565 (95.8)
Others ............................................ … (…) … (…) … (…) … (…)
Purchases ......................................... 259 (100.0) 238 (100.0) 630 (100.0) 702 (100.0)
6)
Petroleum gases .......................... 6 (2.4) 3 (1.1) … (…) … (…)
Natural gas and
vaporized liquefied natural gas ..... 253 (97.6) 236 (98.9) 624 (99.1) 696 (99.2)
Others ............................................ 0 (0.0) 0 (0.0) 0 (0.0) 0 (0.0)
Sales .................................................. 1,477 (100.0) 1,526 (100.0) 1,654 (100.0) 1,723 (100.0)
Residential ..................................... 410 (27.7) 387 (25.3) 419 (25.4) 415 (24.1)
Commercial .................................... 198 (13.4) 177 (11.6) 153 (9.2) 155 (9.0)
Industrial ........................................ 738 (50.0) 842 (55.2) 953 (57.6) 1,020 (59.2)
Others ............................................ 131 (8.9) 120 (7.9) 129 (7.8) 132 (7.7)
1) Figures in parentheses indicate a percentage. 2) A different statistical method was used for the figures
since 2017. 3) Since there are some concealed sources, the breakdown totals may not match the overall
totals. 4) Figures up until FY2016 are a total of volatile oil gas, liquefied petroleum gas, and other
petroleum-based gas. Starting FY2017, figures are a total of vaporized liquefied petroleum gas and other
petroleum-based gas. 5) Figures up until FY2016 are a total of natural gas and liquefied natural gas.
6) Vaporized liquefied petroleum gas, other petroleum-based gas.
Source: The Japan Gas Association.
83
Chapter 8
Science and Technology/
Information and Communication
© WATANABE Noburo
The first mail collection boxes were installed in Japan in 1871, and as of the end of
FY2021, 176,683 were installed. Red collection boxes are widely used, but various
colors of mailboxes exist.
CHAPTER 8 SCIENCE AND TECHNOLOGY/INFORMATION AND COMMUNICATION
1. Science and Technology

(1) Researchers and R&D Expenditures
Japan's expenditures for the research and development (R&D) of science

and technology are at a top level among major countries, and support the
technology-based nation of Japan. Researchers in the fields of science and
technology (including social sciences and humanities) as of the end of
March 2022 totaled 908,300. The total R&D expenditures in fiscal 2021
amounted to 19.7 trillion yen, an increase of 2.6 percent from the previous
fiscal year. Relative to GDP, R&D expenditures was 3.59 percent, a 0.01
percentage point increase from the previous fiscal year.
Table 8.1
Trends in Researchers and Expenditures on R&D
R&D Ratio of R&D
Fiscal Number of GDP
Females expenditures expenditures to GDP
year Researchers 1) 2)
(%) (billion yen) (billion yen) (%)
2012 835,700 14.4 17,325 499,421 3.47
2013 841,600 14.6 18,134 512,678 3.54
2014 866,900 14.7 18,971 523,423 3.62
2015 847,100 15.3 18,939 540,741 3.50
2016 853,700 15.7 18,433 544,830 3.38
2017 867,000 16.2 19,050 555,713 3.43
2018 874,800 16.6 19,526 556,571 3.51
2019 881,000 16.9 19,576 556,836 3.52
2020 890,500 17.5 19,237 537,562 3.58
2021 908,300 17.8 19,741 550,530 3.59
1) As of the end of each fiscal year. 2) Business enterprises, non-profit institutions
and public organizations: Prorated by the percentage of time that researchers are
actually engaged in R&D activities. Universities and colleges: headcount.
As of the end of March 2022, the number of researchers amounted to

529,100 persons in business enterprises, 38,100 persons in non-profit
institutions and public organizations, and 341,100 persons in universities
and colleges. In terms of R&D expenditures in fiscal 2021, business
enterprises spent 14.2 trillion yen (72.1 percent of total R&D expenditures),
non-profit institutions and public organizations spent 1.7 trillion yen (8.8
percent), and universities and colleges spent 3.8 trillion yen (19.2 percent).
85
Universities and colleges spent more than 90 percent of their R&D

expenditure on natural sciences and engineering for basic research and
applied research, while business enterprises allocated over 70 percent for
development purposes.
With regard to the portion in the R&D expenditures in fiscal 2021 by
specific objective, 3.3 trillion yen went to the life sciences field (16.7
percent of total R&D expenditures), 2.8 trillion yen (14.0 percent) to the
information technology field, 1.4 trillion yen (7.0 percent) to the
environmental science and technology field and 1.1 trillion yen (5.3
percent) to the materials field, etc.
Approximately 84 percent of the 529,100 researchers at business
enterprises at the end of March 2022, or 445,000 persons, were in the
manufacturing industries; the largest number was in the motor vehicles,
parts and accessories industry, followed by the information and
communication electronics equipment industry, then by the electronic parts,
devices and electronic circuits industry.
In terms of R&D expenditures in fiscal 2021, of 14.2 trillion yen spent by
business enterprises, 12.2 trillion yen was spent by manufacturing
industries. The motor vehicles, parts and accessories industry spent the
most, followed by the medicines industry, then by the electronic parts,
devices and electronic circuits industry.
86
Figure 8.1
Researchers and Expenditures by Industry (Business enterprises)
Researchers (as of end-March 2022) Expenditures (FY2021)
①
16.9% ①
25.1%
Others
Others ②
529,100 38.5 14,244
44.1 10.9
persons billion yen ⑦
③
9.8
7.5
④ ③
⑤
⑥ ⑤ 7.5 ④ ② 7.7
5.0
6.0 7.0 6.6 7.2
① Motor vehicles, parts and accessories ② Information and communication electronics equipment
③ Electronic parts, devices and electronic circuits ④ Chemical products
⑤ Business oriented machinery ⑥ Production machinery ⑦ Medicines
(2) Technology Balance of Payments (Technology Trade)
Technology trade is defined as the export or import of technology by

business enterprises with other countries, such as patents, expertise, and
technical guidance. In fiscal 2021, Japan earned 3,620.6 billion yen from
technology exports, which was up 16.8 percent from the previous fiscal
year. This was the first increase in 4 years. Of the total receipts, 70.8
percent was from overseas parent/subsidiary companies. Meanwhile,
payments to technology imports stood at 620.1 billion yen, an increase of
10.8 percent compared with the previous fiscal year. It increased for 2
consecutive years. Of this figure, 38.7 percent was for payments to
overseas parent/subsidiary companies.
87
Table 8.2
Technology Trade by Business Enterprises
Exports
Exports Imports
Fiscal value
year Value Annual increase Value Annual increase Imports
(billion yen) rate (%) (billion yen) rate (%) value
2012 2,721.0 14.1 448.6 8.2 6.07
2013 3,395.2 24.8 577.7 28.8 5.88
2014 3,660.3 7.8 513.0 -11.2 7.13
2015 3,949.8 7.9 602.6 17.5 6.55
2016 3,571.9 -9.6 452.9 -24.8 7.89
2017 3,884.4 8.7 629.8 39.1 6.17
2018 3,871.1 -0.3 591.0 -6.2 6.55
2019 3,662.6 -5.4 543.6 -8.0 6.74
2020 3,101.0 -15.3 559.8 3.0 5.54
2021 3,620.6 16.8 620.1 10.8 5.84
In fiscal 2021, Japan exported 3,620.6 billion yen of technologies; major

export destinations were: the U.S.A. (1,288.9 billion yen, or 35.6 percent
of total exports), followed by China (595.1 billion yen), Thailand (342.2
billion yen), and the U.K. (341.9 billion yen). On the other hand, Japan
imported 620.1 billion yen of technologies, mainly from the U.S.A. (438.8
billion yen, or 70.8 percent of total imports), followed by Switzerland
(46.6 billion yen), the U.K. (41.7 billion yen) and Germany (19.1 billion
yen).
88
Figure 8.2
Composition of Technology Trade by Major Country (FY2021)
Exports (receipts) Imports (payments)
Germany
India 3.1 Others
Others
2.2 11.9
18.9 U.K.
Korea, U.S.A. U.S.A.
Rep. of 6.7
35.6% 70.8%
2.4
3,620.6 620.1
Mexico
▼
billion yen 7.5 billion yen

2.5
Indonesia
9.4 Switzerland
3.2
U.K. China
9.5
16.4
Thailand
2. Patents
The total number of patent applications remained robust in and after 1998
as more than 400,000 applications were filed every year, but a gradual
drop has been seen since 2006. The level remained above 300,000
applications until 2019. The number of applications in 2021 was 289,200,
up 0.25 percent from the previous year.
Table 8.3
Patents
(Cases)
Item 2005 2010 2015 2020 2021
Applications ........................... 427,078 344,598 318,721 288,472 289,200
Registrations .......................... 122,944 222,693 189,358 179,383 184,372
Existing vested rights ............. 1,123,055 1,423,432 1,946,568 2,039,040 2,020,424
Source: Japan Patent Office.
89
Table 8.4
PCT International Applications by Country
Change from
Country 2019 2020 2021*
2020 (%)
Total ............................. 265,383 274,889 277,500 0.9

China ......................... 59,187 68,923 69,540 0.9
U.S.A. ....................... 57,446 58,477 59,570 1.9
Japan ......................... 52,702 50,578 50,260 -0.6
Korea, Rep. of ........... 19,074 20,045 20,678 3.2
Germany .................... 19,347 18,499 17,322 -6.4
France ....................... 7,923 7,782 7,380 -5.2
U.K. .......................... 5,777 5,889 5,841 -0.8
Switzerland ................ 4,651 5,119 5,386 5.2
Sweden ...................... 4,201 4,351 4,453 2.3
Netherlands ............... 4,034 3,996 4,123 3.2
Source: World Intellectual Property Organization.
Over 150 countries, including Japan, have joined the international patent
system of the World Intellectual Property Organization (WIPO) as of
February 2023. In 2021, the number of international patent applications
filed under the Patent Cooperation Treaty (PCT) was 277,500, of which
50,260 were from Japan, accounting for 18.1 percent.
The United States Patent and Trademark Office ranked first among major
patent offices for applications filed by Japanese applicants in 2021, with
76,275 applications. The number of patent applications filed by Japanese
applicants at the China National Intellectual Property Administration was
47,010.
90
Figure 8.3
Changes in Patent Applications with Major Offices by Japanese
Applicants
100,000
90,000
80,000 USPTO 1)
70,000
60,000
50,000
CNIPA
40,000
30,000 EPO
20,000
10,000
KIPO 1)
0
2005 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
1) The USPTO and KIPO data for 2021 are provisional.

USPTO: United States Patent and Trademark Office; CNIPA: China National Intellectual
Property Administration; EPO: European Patent Office; KIPO: Korean Intellectual Property
Office.
Source: Japan Patent Office.
3. Information and Communication

(1) Diffusion of the Internet
The ratio of individuals using the Internet, of which commercial usage

started in 1993, exceeded 80 percent in 2013. At the end of August 2022,
the ratio of individuals who had used the Internet in the past year
(individuals who are 6 years of age and older) was 84.9 percent. According
to the individual Internet usage rate by age group, the usage rate exceeded
90 percent in each age group between 13 and 59 years old.
91
Figure 8.4
Trends in Internet Usage Rate by Age Group 1)
%
100
2012 2)
80 2022 3)
60
40
20
0
Total
Total 6-12 13-19 20-29 30-39 40-49 50-59 60-64 65-69 70-79 80 and
over
1) Ages 6 years and over. 2) End of 2012. 3) End of August 2022.
According to the status of Internet use by device by age group as of the

end of August 2022, the usage rate of smartphones was the highest (71.2
percent), followed by computers (48.5 percent). Figures for the rate of
Internet use by device by age group show that more than 80 percent use
smartphones in each age group between 13 and 59 years old.
Table 8.5
Status of Internet Use by Device by Age Group (2022)
(%)
Usage 6-12 80 and
Item 13-19 20-29 30-39 40-49 50-59 60-69 70-79
rate years over
Smartphones ............... 71.2 42.6 83.5 88.9 90.7 89.0 86.7 73.7 46.9 17.3
Computers .................. 48.5 28.5 47.1 63.0 60.5 62.1 60.8 51.3 32.7 10.9
Internet-enabled
TV receivers .............. 27.1 38.0 31.5 29.4 41.6 34.5 29.2 23.7 12.9 7.0
1)
Mobile phones ......... 10.3 6.6 8.2 11.4 10.8 11.6 11.1 10.8 10.1 8.5
1) Excluding smartphones.
92
As of the end of August 2022, 51.7 percent of enterprises had introduced

telework. This marked a decrease of 0.2 percentage points compared with
the previous year. The most frequent telework pattern was working from
home, 91.3 percent, followed by mobile work, 27.0 percent and working
from a satellite office, 12.9 percent.
(2) Progress of Communication Technologies
As of the end of March 2022, those with subscriptions for 3.9-4G mobile
phones (LTE) made up the largest segment of broadband (connection)
subscribers, amounting to 139 million subscriptions. Those with BWA
(Broadband Wireless Access) service (access service connecting to
networks via broadband wireless access systems using the 2.5GHz band
[WiMAX, etc.]) was the second highest, with 80 million subscribers.
Meanwhile, IP phone services (voice phone services that use Internet
Protocol technology across part or all of the communication network),
which use broadband circuits as access lines, entered full-scale use
between 2002 and 2003. As of the end of March 2022, the total number of
IP phone subscribers was 45 million.
Table 8.6
Subscribers to Telecommunications Services 1)
(Thousands)
Item 2018 2019 2020 2021 2022
2)
Public phones (NTT only) ........ 158 155 151 146 138
Fixed phone services ................... 18,450 17,242 15,954 14,856 13,827
Mobile phones 3) .......................... 172,790 179,873 186,514 195,055 203,335
IP phone ..................................... 42,555 43,413 44,131 44,670 45,348
ISDN (Integrated Services
Digital Network) .......................... 2,904 2,715 2,507 2,307 2,117
DSL (Digital Subscriber Line) ..... 2,146 1,730 1,398 1,073 690
Cable Internet .............................. 6,880 6,837 6,675 6,535 6,405
FTTH (Fiber To The Home) ........ 30,604 31,669 33,122 35,066 36,735
BWA (Broadband Wireless Access) .. 58,226 66,241 71,200 75,709 79,732
3.9-4G mobile phones (LTE) ............ 120,727 136,642 152,623 154,366 139,055
5G mobile phones ............................ - - 24 14,186 45,018
International phone calls,
sent and received ..................... 493,400 448,500 471,400 367,600 498,500
1) End of March. 2) Nippon Telegraph and Telephone Corporation.
3) Cell phones and PHS (Personal Handyphone System).
93
In 2021, the number of fixed-broadband subscribers in Japan was 45

million, the third-largest after China, 536 million and the U.S.A., 126
million.
Figure 8.5
International Comparison of Fixed-Broadband Subscribers (2021)
Millions
0 50 100 500 550
China
U.S.A.
Japan
Brazil
Germany
Russia
France
U.K.
India
Mexico
Source: International Telecommunication Union.
(3) Telephones
The number of fixed phone service subscription contracts has continued to

decrease in recent years. As of the end of March 2022, the number of fixed
phone subscribers was 14 million (down 6.9 percent from the previous
year). Meanwhile, the number of mobile phone subscribers (cell phones
and personal handyphone systems) totaled 195 million at the end of March
2021, marking a rise by 4.2 percent year-on-year to 203 million at the end
of March 2022.
94
Figure 8.6
Telephone Service Subscribers 1)
Millions
250
200
Fixed phones
150
Mobile phones 2)
100
50
0
199900 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22
1) End of March. 2) Subscribers of cell phones and PHS (Personal Handyphone System).
(4) Postal Service
As of the end of March 2023, Japan Post Co., Ltd. had 24,251 post offices
nationwide. In fiscal 2022, post offices handled 18.5 billion items of
domestic mail (including parcels), which was a 3.4 percent decrease from
the previous fiscal year. Furthermore, the total quantity of international
mail (letters, Express Mail Services [EMS], and parcels) sent in fiscal
2022 amounted to 21.9 million items, a decrease of 11.3 percent from the
previous fiscal year.
Table 8.7
Postal Services
(Millions)
Domestic
Letters ................... 22,666.1 19,757.9 17,981.0 15,221.0 14,833.1 14,423.2
Parcels .................. 2,075.0 2,968.4 4,052.4 4,390.1 4,334.9 4,093.2
International
Sent ....................... 77.5 54.2 48.9 23.0 24.7 21.9
1)
Letters ............ 76.1 52.8 44.1 20.6 21.9 19.9
Parcels ............... 1.5 1.4 4.8 2.5 2.8 2.1
1) Including Express Mail Services (EMS).
Source: Japan Post Co., Ltd.
95
Chapter 9
Transport
© KAWAHARA Yuta
© FUKUDA Kazuo
The Watarase Keikoku Railway runs through peach blossoms on tracks connecting
Kiryu City, Gunma with Ashiomachi, Nikko City, Tochigi.
CHAPTER 9 TRANSPORT
1. Domestic Transport
Various modes of domestic transport are used in Japan; almost all

passenger transport is by railway, while nearly all freight transport is by
motor vehicle and cargo ship.
Figure 9.1
Figure 9.1
Composition of
Composition of Domestic
Domestic Transport
Transport
Passengers Airlines
Passengers ▼ Motor vehicles 1)
Airlines
FY ▼ Motor vehicles Passenger
Railways 71.6% 13.4 14.4 ships 0.5
2010
FY
14.4% Railways 70.3 14.6
2010
FY
FY 81.8 9.8 8.01) 0.5
2020 11.5 72.3 15.6
2020
00 100100 200 200 300 300 400 400 500 500 600 600
Billion passenger-km
Billion passenger-km
Freight Railways
Freight Railways
FY
2010 Motor vehicles 58.7% 1) Cargo ships 36.9 4.2 Airlines 0.2 2)
FY
2010
Motor vehicles 60.8% Cargo ships 34.9 4.0
FY
FY 55.3 1) 39.8 4.7 0.1 2)
2020 50.9 43.7 5.2 0.3
2020
0 100 200 300 400 600 500

0 100 200 300 400 600500
Billion ton-km
Billion ton-km
1) Figures from FY2010 are estimates based on the survey method and aggregation method changed in FY2020.
2) Including overweight baggage and postal mail.
In fiscal 2010, railways accounted for 71.6 percent, motor vehicles for
14.4 percent, airlines for 13.4 percent, and passenger ships for 0.5 percent
of domestic passenger transport volume (passenger-kilometers). In fiscal
2020, airlines dropped to 9.8 percent due to the effects of the COVID-19
pandemic, while railways, in contrast, rose to 81.8 percent, 10.2 points
higher than fiscal 2010. In terms of domestic freight volume
(ton-kilometers), on the other hand, motor vehicles accounted for 55.3
percent and cargo ships for 39.8 percent in fiscal 2020, together
constituting about 95 percent of the total. Although ton kilometers
decreased, the component ratio shows the same trend as 10 years before.
97
CHAPTER 9 TRANSPORT
(1) Domestic Passenger Transport
In fiscal 2020, the number of domestic transport passengers was 21.75

billion (down 30.2 percent from the previous fiscal year). The total volume
of passenger transport was 321.87 billion passenger-kilometers (down 45.8
percent).
Table 9.1
Domestic Passenger Transport
Passengers carried Passenger kilometers
Item (millions) (millions)
FY2019 FY2020 FY2019 FY2020
Total transport volume ........... 31,172 21,749 593,930 321,870
Railways ............................... 25,190 17,670 435,063 263,211
JR (Japan Railways) ............ 9,503 6,707 271,936 152,084
Other than JR ..................... 15,687 10,963 163,126 111,127
Motor vehicles ...................... 5,800 4,000 61,301 25,593
Buses (Commercial use) ..... 4,532 3,262 55,815 22,546
Taxis and limousine hires .... 1,268 738 5,486 3,047
Airlines ................................. 102 34 94,490 31,543
Passenger ships ..................... 80 45 3,076 1,523
In fiscal 2020, the Japan Railways (JR) group reported 6.71 billion
passengers (down 29.4 percent from the previous fiscal year) and 152.08
billion passenger-kilometers (down 44.1 percent). Railways other than JR
reported 10.96 billion passengers (down 30.1 percent) and 111.13 billion
passenger-kilometers (down 31.9 percent).
To promote the use of buses, approaches to improve punctuality and speed

using bus lanes and to make buses more convenient, such as by
introducing a bus location system that provides locational information of
buses as well as an IC card system that enables smooth bus rides, are being
carried out. Commercial buses transported 3.26 billion passengers (down
28.0 percent from the previous fiscal year) and 22.55 billion
passenger-kilometers (down 59.6 percent); both figures of passengers and
passenger-kilometers declined in fiscal 2020.
98
CHAPTER 9 TRANSPORT
Domestic airline passengers increased until around fiscal 2002, and after
that the trend was roughly flat until fiscal 2007. However, a declining trend
continued after the bankruptcy of the major American securities firm
Lehman Brothers in 2008, and although there was a recovery after fiscal
2011, domestic air transport fell into a major slump due to the COVID-19
pandemic which occurred in 2020. Fiscal 2020 air transport records show
that there were 34 million passengers (down 66.9 percent from the
previous fiscal year), and passenger-kilometers amounted to 31.54 billion
(down 66.6 percent).
In fiscal 2020, passenger ships reported 45 million passengers (down 43.5
percent from the previous fiscal year) and 1.52 billion
passenger-kilometers (down 50.5 percent).
(2) Domestic Freight Transport
In the area of domestic freight, a total of 4.13 billion metric tons (down
12.3 percent from the previous fiscal year) of freight was transported for a
total of 386.11 billion ton-kilometers (down 8.2 percent) in fiscal 2020. As
for transport tonnage volume in fiscal 2020, motor vehicle transport
accounted for more than 90 percent of the total.
Table 9.2
Domestic Freight Transport
Freight tonnage Ton kilometers
Item (thousands) (millions)
FY2019 FY2020 FY2019 FY2020
Total transport volume ........................ 4,502,384 4,132,688 442,075 386,111
Railways ............................................ 42,660 39,124 19,993 18,340
Motor vehicles ................................... 4,117,399 3,786,998 251,471 213,419
Commercial use .............................. 2,842,033 2,550,515 224,012 186,999
Non-commercial use ....................... 1,275,366 1,236,483 27,459 26,421
Cargo ships ....................................... 341,450 306,076 169,680 153,824
Airlines 1) ........................................... 875 490 931 528
1) Including overweight baggage and postal mail.
99
CHAPTER 9 TRANSPORT
2. International Transport
(1) International Passenger Transport
The global economic downturn after September 2008, the spread of a new
influenza in early 2009, and the effects of the Great East Japan Earthquake
in 2011 reduced international air passenger transport on Japanese airlines.
In 2012, this trend reversed to an increase, and the increase continued for 8
consecutive years until 2019. However, due to the effects of the
COVID-19 pandemic, Japanese airlines transported 1.39 million
passengers (down 68.1 percent from the previous year) and registered 9.32
billion passenger kilometers (down 58.7 percent) in 2021, declining for the
second consecutive year.
The number of Japanese overseas travelers in 2022 was 2.77 million, down
86.2 percent from 2019, prior to the effects of the COVID-19 pandemic.
The number of foreign visitor arrivals was 3.83 million, indicating a
marked recovery since October 2022 when full-fledged acceptance of
foreign visitors was resumed, but still only about 10 percent of the 2019
level.
Figure 9.2
Japanese Overseas Travelers and Foreign Visitor Arrivals
Millions
34
32
30
28 Japanese travelers (Females)
26 Japanese travelers (Males)
24
22
20
18
16
14
12
10 Foreign visitors
8
6
4
2
0
2013 14 15 16 17 18 19 20 21 22 1)
1) The Foreign visitors data for 2022 is provisional.

Source: Immigration Services Agency of Japan; Japan National Tourism Organization.
100
CHAPTER 9 TRANSPORT
According to reports on arrivals by tourist offices in countries around the

world, the U.S.A. and the Republic of Korea had many Japanese visitors in
2020.
Table 9.3
Japanese Overseas Travelers by Destination
2018 2019 2020
Country or area
Number of Annual Number of Annual Number of Annual
of destination
arrivals change (%) arrivals change (%) arrivals change (%)
U.S.A. 1) 2) .............. 3,493,313 -2.8 3,752,980 7.4 696,727 -81.4
3)
Korea, Rep. of .... 2,948,527 27.6 3,271,706 11.0 430,742 -86.8
3)
China ................... 2,689,662 0.4 2,676,334 -0.5 … …
4)
Thailand .............. 1,655,996 7.2 1,806,438 9.1 320,331 -82.3
5)
Taiwan ................ 1,969,151 3.7 2,167,952 10.1 269,659 -87.6
5)
Viet Nam ............. 826,674 3.6 951,962 15.2 200,346 -79.0
2)
Philippines ........... 631,821 8.2 682,788 8.1 136,664 -80.0
5)
Singapore ............ 829,676 4.6 884,308 6.6 125,879 -85.8
1) Including territories and dependencies (Northern Mariana Islands, Guam, American
Samoa, Puerto Rico and United States Virgin Islands, etc.). 2) Arrivals of non-resident
tourists at national borders, by country of residence. 3) Arrivals of non-resident visitors at
national borders, by nationality. 4) Arrivals of non-resident tourists at national borders, by
nationality. 5) Arrivals of non-resident visitors at national borders, by country of residence.
Source: Japan National Tourism Organization.
101
CHAPTER 9 TRANSPORT
Among foreign visitors to Japan in 2022 by country/region, visitors from

Asian countries were the highest, totaling 3.00 million. Among Asian
countries, the number of visitors from the Republic of Korea was highest,
amounting to 1.01 million, and the figure accounted for 26.4 percent of the
total number of foreign visitors to Japan.
Strategic efforts are being made to achieve recovery and reexpansion of

inbound tourism, focusing on areas such as further increasing tourist
expenditures, attracting more visitors to rural areas, promoting sustainable
tourism, responding to post-COVID travel needs, and strengthening
marketing based on data analysis.
Table 9.4
Foreign Visitors
2020 2021 2022*
Region, country or
Number of Percentage Number of Percentage Number of Percentage
area of origin
arrivals distribution arrivals distribution arrivals distribution
1)
Total arrivals ............ 4,115,828 100.0 245,862 100.0 3,832,110 100.0
Asia .......................... 3,403,547 82.7 150,427 61.2 3,001,292 78.3
Korea, Rep. of ......... 487,939 11.9 18,947 7.7 1,012,751 26.4
Taiwan ...................... 694,476 16.9 5,016 2.0 331,097 8.6
Viet Nam ................ 152,559 3.7 26,586 10.8 284,113 7.4
Hong Kong, SAR .... 346,020 8.4 1,252 0.5 269,285 7.0
Thailand .................. 219,830 5.3 2,758 1.1 198,037 5.2
China ...................... 1,069,256 26.0 42,239 17.2 189,125 4.9
Europe ...................... 240,897 5.9 52,238 21.2 304,505 7.9
U.K. ........................ 51,024 1.2 7,294 3.0 57,496 1.5
Africa ........................ 7,840 0.2 6,769 2.8 14,613 0.4
North America .......... 284,829 6.9 26,238 10.7 392,009 10.2
U.S.A. ..................... 219,307 5.3 20,026 8.1 323,513 8.4
Canada .................... 53,365 1.3 3,536 1.4 55,877 1.5
South America .......... 18,222 0.4 5,204 2.1 17,652 0.5
Oceania ..................... 160,386 3.9 4,953 2.0 101,921 2.7
Australia ................. 143,508 3.5 3,265 1.3 88,648 2.3
1) Including stateless people, etc.
Source: Japan National Tourism Organization.
102
CHAPTER 9 TRANSPORT
In 2022, of the total number of foreign visitors to Japan, tourists numbered

2.49 million people, or 64.9 percent of total foreign visitors. The highest
number of tourists came from the Republic of Korea, with 0.86 million
travelers, followed by Taiwan, with 0.29 million travelers.
(2) International Freight Transport
The volume of seaborne foreign transport in 2021 was 883 million tons,
down 0.7 percent over the previous year. Of this figure, total exports
increased by 29.9 percent to 76 million tons, and total imports increased by
0.8 percent to 438 million tons.
Table 9.5
Seaborne Foreign Transport
(Thousand tons)
Year Total Exports Imports Cross Transport
2000 739,377 34,960 538,875 165,542
2005 777,869 45,404 529,239 203,225
2010 819,075 44,758 465,898 308,419
2015 1,056,144 60,802 544,702 450,639
2020 889,365 58,411 435,019 395,935
2021* 883,042 75,897 438,283 368,863
Air-shipped international freight in 2021 totaled 1.77 million tons in terms

of volume (up 37.9 percent from the previous year) and 10.36 billion tons
in terms of ton-kilometers (up 42.4 percent).
103
Chapter 10
Commerce
© SHOJI Seiichi
A morning market in Wajima, Ishikawa Prefecture. They say this market started
around the year 800 when people brought products to shrines and bartered with each
other. This market has been nurtured over a long history, and thrived amid the
heart-to-heart contact of buyers and sellers.
CHAPTER 10 COMMERCE
1. Wholesale and Retail
The "2021 Economic Census for Business Activity" showed that 1.23
million wholesale and retail establishments were in operation in Japan. The
number of persons engaged at such establishments became 11.61 million.
Sales in the wholesale and retail industries amounted to 480.17 trillion yen,
accounting for 28.4 percent of the total of all industries.
(1) Wholesale Trade
The number of wholesale establishments in operation was 348,889 in 2021.

Observed by size of operation in terms of persons engaged, establishments
with less than 20 persons accounted for 88.0 percent of the total. By type
of corporate form, 91.5 percent of them were corporations, while 8.4
percent were individual proprietorships.
Table 10.1
Establishments and Persons Engaged in the Wholesale and Retail Sector (2021)
Item Total Wholesale Retail
Number of Establishments ................................................. 1,228,920 348,889 880,031
Size of operation (persons engaged)
1-4 persons ................................................................. 662,206 171,120 491,086
5-9 .............................................................................. 265,776 85,100 180,676
10-19 .......................................................................... 173,105 50,733 122,372
20-29 .......................................................................... 56,551 16,437 40,114
30-49 .......................................................................... 33,078 12,023 21,055
50-99 .......................................................................... 19,287 6,651 12,636
100 and over ............................................................... 10,167 3,765 6,402
Loaned or dispatched employees only ......................... 8,750 3,060 5,690
Persons engaged ................................................................. 11,611,924 3,900,979 7,710,945
Regular employees ........................................................... 10,174,880 3,453,375 6,721,505
Indefinite duration employees ..................................... 6,790,299 2,951,492 3,838,807
Limited duration employees ........................................ 3,384,581 501,883 2,882,698
Temporary employees ...................................................... 214,794 44,194 170,600
Loaned or dispatched employees from
the separately operated establishments ......................... 279,040 146,446 132,594
Loaned or dispatched employees to
the separately operated establishments ......................... 97,377 75,678 21,699
105
CHAPTER 10 COMMERCE
The number of persons engaged in the wholesale sector was 3.9 million in
2021, 546,077 of whom were limited duration employees and temporary
employees, making up 14.0 percent of the total.
(2) Retail Trade
The number of retail establishments in operation totaled 880,031 in 2021.

Observed by size of operation in terms of persons engaged, establishments
with less than 10 persons accounted for 76.3 percent of the total. By type
of corporate form, 65.7 percent of them were corporations, while 34.2
percent were individual proprietorships. The proportion of individual
proprietorships was higher than that in the wholesale sector.
The number of persons engaged in retail was 7.71 million in 2021, 3.05
million of whom were limited duration employees and temporary
employees, comprising 39.6 percent of the total.
2. Eating and Drinking Places
There were 499,176 eating and drinking places establishments in operation

and 3.49 million persons engaged at them in 2021.
Table 10.2
Eating and Drinking Places (2021)
Size of operation Establishments Persons engaged
(persons engaged) Number Ratio (%) Number Ratio (%)
Total ...................................................... 499,176 100.0 3,489,039 100.0
1-4 persons ........................................ 308,208 61.7 649,085 18.6
5-9 ..................................................... 92,798 18.6 608,955 17.5
10-19 ................................................. 55,144 11.0 746,796 21.4
20-29 ................................................. 25,036 5.0 596,470 17.1
30 and over ........................................ 17,094 3.4 887,733 25.4
Loaned or dispatched employees only .... 896 0.2 - -
106
Chapter 11
Trade, International Balance of Payments, and
International Cooperation
An airplane flies from Shimojishima Airport.

From 17 END at the northern end of Shimojishima Island, you can see up close as
airplanes take off and land.
Shimojishima Airport has domestic and international flights and contributes to the
further growth of the Miyako Islands as an international resort.
CHAPTER 11 TRADE, INTERNATIONAL BALANCE OF PAYMENTS, AND
INTERNATIONAL COOPERATION
1. Trade
(1) Overview of Trade
In 2021, Japan's international trade on a customs clearance basis increased,

both exports and imports. Exports (in FOB value) amounted to 83.1 trillion
yen, which was a 21.5 percent increase as compared to the previous year,
and an increase for the first time in 3 years. Imports (in CIF value)
amounted to 84.9 trillion yen, which was a 24.8 percent increase as
compared to the previous year, and an increase for the first time in 3 years.
Trade balance totaled -1.8 trillion yen. This was the red figure for the first
time in 2 years.
Figure 11.1
Foreign Trade
Trillion yen
90
80
Imports
70
Exports
60
50
40
30
200
2008 09 10 11 12 13 14 15 16 17 18 19 20 21
108
Table 11.1
Trends in Foreign Trade and Indices of Trade
Value (billion yen) Indices of trade (2015=100)
(Customs clearance basis) Exports Imports
Year Unit Unit
Exports Imports Value Quantum Value Quantum
Balance value value
(FOB) (CIF) index index 1) index index 1)
index index
2012 63,748 70,689 -6,941 84.3 102.0 82.7 90.2 102.0 88.4
2013 69,774 81,243 -11,468 92.3 100.5 91.8 103.6 102.3 101.3
2014 73,093 85,909 -12,816 96.7 101.1 95.7 109.6 102.9 106.5
2015 75,614 78,406 -2,792 100.0 100.0 100.0 100.0 100.0 100.0
2016 70,036 66,042 3,994 92.6 100.5 92.2 84.2 98.8 85.3
2017 78,286 75,379 2,907 103.5 105.9 97.8 96.1 102.9 93.4
2018 81,479 82,703 -1,225 107.8 107.7 100.1 105.5 105.8 99.7
2019 76,932 78,600 -1,668 101.7 103.0 98.8 100.2 104.6 95.9
2020 68,399 68,011 388 90.5 91.0 99.4 86.7 97.9 88.6
2021 83,091 84,875 -1,784 109.9 101.9 107.8 108.3 102.8 105.3
1) Quantum index = Value index / Unit value index × 100
With regard to unit value index, Japan's 2021 exports increased by 8.5
percent from the previous year (an increase for the second consecutive
year), and quantum index increased by 12.0 percent from the previous year
(the first increase in 2 years).
With regard to Japan's imports in 2021, the unit value index and quantum
index increased by 18.8 percent and 5.0 percent respectively compared to
the previous year; both indices recorded their first increase in 2 years.
(2) Trade by Commodity
As for Japan's exports in 2021 by commodity, general machinery

accounted for the largest portion of the total export value, 19.7 percent,
followed by transport equipment and electrical machinery, making up 19.5
percent and 18.4 percent, respectively. Motor vehicles, which are in the
transport equipment category, constituted 12.9 percent of the total export
value, up 4.7 percent in quantity and up 11.9 percent in value from the
previous year. One characteristic of Japan's exports is the large proportion
of high value-added products manufactured with advanced technology,
such as motor vehicles, iron and steel products, and semiconductors, etc.
109
The leading import item category was mineral fuels, which represented
20.0 percent of the total value imported, followed by electrical machinery
and chemicals, at 16.1 percent and 11.5 percent, respectively. Petroleum, in
the mineral fuels category, constituted 8.2 percent of the total import value,
down 1.2 percent in quantity and up 49.1 percent in value from the
previous year.
Figure 11.2
Component Ratios of Foreign Trade by Commodity (2021)
Manufactured Mineral fuels 1.2
goods 1) Raw
Transport equipment materials
Foodstuff 1.2
Electrical 1.7
General machinery machinery Chemicals Others
▼ ▼ ▼ ▼
Exports
83.1 trillion yen 19.7% 19.5 18.4 12.7 11.9 13.6
Manufactured Foodstuff Transport

goods 1) equipment 3.8
Electrical General Raw
Mineral fuels machinery Chemicals machinery materials Others
▼ ▼ ▼ ▼ ▼ ▼
Imports
84.9 trillion yen 20.0% 16.1 11.5 9.8 9.1 8.7 8.2 12.9
0%
0 20 40 60 80 100
100%%
1) Consisting of iron and steel products, nonferrous metals, textile yarn and fabrics, etc.
110
Table 11.2
Value of Exports and Imports by Principal Commodity
(Billion yen)
Annual
Item 2019 2020 2021 growth
(%)
Exports, total .............................................. 76,932 68,399 83,091 21.5
Foodstuff .................................................... 754 790 992 25.6
Raw materials ............................................ 1,034 1,020 1,439 41.1
Mineral fuels ............................................. 1,383 723 993 37.4
Chemicals .................................................. 8,739 8,534 10,552 23.7
Plastic materials ...................................... 2,430 2,420 2,976 23.0
1)
Manufactured goods ............................... 8,407 7,504 9,928 32.3
Iron and steel products ............................ 3,074 2,574 3,814 48.2
General machinery ..................................... 15,122 13,140 16,382 24.7
Semicon machinery, etc. ......................... 2,467 2,517 3,353 33.2
Electrical machinery .................................. 13,208 12,898 15,309 18.7
Semiconductors, etc. ............................... 4,006 4,155 4,900 17.9
Transport equipment .................................. 18,118 14,456 16,192 12.0
Motor vehicles ........................................ 11,971 9,580 10,722 11.9
Others ........................................................ 10,167 9,334 11,302 21.1
Scientific, optical inst ............................. 2,130 1,968 2,322 18.0
Imports, total .............................................. 78,600 68,011 84,875 24.8

Foodstuff .................................................... 7,192 6,679 7,383 10.5
Meat and meat preparation ...................... 1,540 1,431 1,557 8.8
Raw materials ............................................ 4,861 4,682 6,936 48.2
Ore of nonferrous .................................... 1,378 1,505 2,007 33.4
Mineral fuels .............................................. 16,951 11,254 17,007 51.1
Petroleum ................................................ 7,969 4,646 6,929 49.1
Chemicals .................................................. 8,163 7,859 9,769 24.3
Medical products ..................................... 3,092 3,197 4,208 31.6
1)
Manufactured goods ............................... 7,068 6,564 8,277 26.1
Nonferrous metals ................................... 1,750 1,723 2,836 64.6
General machinery ..................................... 7,583 7,043 7,682 9.1
Computers and units ............................... 2,211 2,406 2,392 -0.6
Electrical machinery .................................. 11,992 11,354 13,648 20.2
Semiconductors, etc. ............................... 2,581 2,506 3,355 33.9
Transport equipment .................................. 3,561 2,600 3,244 24.8
Motor vehicles ........................................ 1,408 1,165 1,372 17.7
Others ........................................................ 11,229 9,977 10,930 9.5
Clothing and accessories ......................... 3,205 2,724 2,835 4.1
1) Consisting of iron and steel products, nonferrous metals, textile yarn and fabrics, etc.
111
Figure 11.3
Japan's Major
Component Ratios
Export
of the
andValue
Import
of Major
Commodities
Export (2016)
and Import
Commodities by Country/Region (2021)
Exports Imports
Motor vehicles Others Petroleum
(10,722 billion yen) 5.6 (6,929 billion yen)
Russia 3.7
Saudi Arabia
Qatar 7.4
Others U.S.A.
41.9 33.4% Kuwait 8.5 40.0%
U.A.E.
34.8
Australia 9.2
Russia 3.3
Canada 3.4 China 8.8
Semiconductors, etc Medical products

(4,900 billion yen) (4,208 billion yen)
China U.S.A
Others
25.3% 20.5%
27.0 Others
36.8 Germany
12.8
Malaysia 21.9
6.4
12.3
Taiwan
Korea, Rep. of Belgium
Switzerland 11.4
7.1 Hong Kong SAR 8.8 Ireland
9.7
Iron and steel products Semiconductors, etc
(3,814 billion yen) (3,355 billion yen)
China
China
Malaysia 5.1 Others
16.5% Thailand 14.3
Others
43.3 14.9 Korea, Rep. of Taiwan
7.0 47.9%
13.2 U.S.A. 9.2 16.5

Korea, Rep. of
Mexico 5.8 Taiwan 6.3 China
112
(3) Trade by Country/Region
Japan has maintained a trade surplus with Asia and the U.S.A., while
having a continuous trade deficit with the Middle East and Oceania.
Table 11.3
Trends in Value of Exports and Imports by Country/Region
(Billion yen)
Korea, 1) Middle
Year Total Asia China Taiwan U.S.A. EU Oceania
Rep. of East
Exports from Japan
2017 78,286 42,920 14,890 5,975 4,558 15,113 8,657 2,350 2,301
2018 81,479 44,736 15,898 5,793 4,679 15,470 9,209 2,434 2,402
2019 76,932 41,327 14,682 5,044 4,689 15,255 8,955 2,356 2,053
2020 68,399 39,220 15,082 4,767 4,739 12,611 6,460 1,809 1,688
2021 83,091 48,158 17,984 5,770 5,988 14,832 7,668 2,052 2,194
Imports to Japan
2017 75,379 37,026 18,459 3,153 2,848 8,090 8,757 8,243 4,969
2018 82,703 39,218 19,194 3,550 2,998 9,015 9,718 10,375 5,659
2019 78,600 37,413 18,454 3,227 2,928 8,640 9,722 8,852 5,587
2020 68,011 34,678 17,508 2,842 2,863 7,454 7,832 5,558 4,359
2021 84,875 41,094 20,382 3,521 3,678 8,916 9,453 8,471 6,434
1) 28 countries: from July 2013 to Jan. 2020, 27 countries: from Feb. 2020 onward.
(A) Trade with Asia
Japan's 2021 trade balance with Asia resulted in a 7.1 trillion yen in
surplus, an increase for the second consecutive year (up 55.5 percent from
the previous year). Exports (in FOB value) totaled 48.2 trillion yen (up
22.8 percent), an increase for the first time in 3 years; this was mainly due
to the contributions for the increase in manufactured goods and general
machinery. Imports (in CIF value) amounted to 41.1 trillion yen (up 18.5
percent), an increase for the first time in 3 years; this was mainly
contributed to the increase in electrical machinery and manufactured
goods.
In 2021, Japan's trade with China amounted to 18.0 trillion yen in exports
and 20.4 trillion yen in imports. The percentage of the total amount of
Japan's imports and exports that is accounted for by imports and exports
between Japan and China is approximately 20 percent, signifying that
China is Japan's largest trading counterpart.
113
(B) Trade with U.S.A.
Japan's 2021 trade balance with the U.S.A. showed a surplus of 5.9 trillion
yen (up 14.7 percent from the previous year), an increase for the first time
in 2 years. Exports (in FOB value) totaled 14.8 trillion yen (up 17.6
percent), an increase for the first time in 3 years. The growth was due
mainly to the contributions of general machinery and electrical machinery.
Imports (in CIF value) totaled 8.9 trillion yen (up 19.6 percent), an
increase for the first time in 3 years. The growth was due mainly to the
contributions of mineral fuels and chemicals.
(C) Trade with EU
Japan's 2021 trade balance with the EU (27 countries) registered a deficit
of 1.8 trillion yen. Exports (in FOB value) to the EU (27 countries)
increased by 21.4 percent year-on-year, to 7.7 trillion yen. Commodities
such as general machinery and electrical machinery contributed to the
growth in exports. Imports (in CIF value) from the EU (27 countries)
totaled 9.5 trillion yen, up 21.8 percent from the previous year.
Commodities such as chemicals and transport equipment contributed to the
growth in imports.
114
Figure 11.4
Trends in Value of Exports and Imports by Country/Region
Exports from Japan Imports to Japan

Trillion yen Trillion yen
22 22
20 20
18 18
U.S.A.
16 16
China
14 14
12 12
EU 1)
China EU 1)
10 10
8 8
Korea, Rep. of
6 6 U.S.A.
Korea, Rep. of
4 4
Taiwan
2 2
Taiwan
0 0
2012 14 16 18 20 21 2012 14 16 18 20 21
1) 27 countries: from Jan. 2007 to June 2013, 28 countries: from July 2013 to Jan. 2020, 27
countries: from Feb. 2020 onward.
115
2. International Balance of Payments

The current account in 2022 totaled 11.5 trillion yen, and its surplus shrank
for the first time in 2 years, due to the trade balance switching to a deficit,
etc. Breaking down the current account, goods and services fell by 18.7
trillion yen from the previous year to -21.2 trillion yen, recording a deficit
for the fourth consecutive year. Primary income amounted to 35.2 trillion
yen, which was a 33.4 percent increase in its surplus from the previous
year.
The financial account amounted to 6.5 trillion yen in 2022, due to factors
such as an increase in net assets for direct investment, etc.
Table 11.4
International Balance of Payments
(Billion yen)
Item 2019 2020 2021 2022
Current account .................................................. 19,251.3 15,991.7 21,536.3 11,546.6
Goods and services ...................................... -931.8 -877.3 -2,483.4 -21,163.8
Goods ..................................................... 150.3 2,777.9 1,762.3 -15,743.6
Exports ............................................. 75,775.3 67,262.9 82,352.6 98,768.8
Imports ............................................. 75,625.0 64,485.1 80,590.3 114,512.4
Services .................................................. -1,082.1 -3,655.2 -4,245.7 -5,420.2
Primary income ............................................ 21,553.1 19,438.7 26,378.8 35,185.7
Secondary income ........................................ -1,370.0 -2,569.7 -2,359.1 -2,475.3
Capital account ................................................... -413.1 -207.2 -423.2 -114.4
Financial account 1) ............................................ 24,862.4 14,125.1 16,837.6 6,492.2
Direct investment ......................................... 23,859.1 9,389.8 19,242.8 16,958.2
Portfolio investment ..................................... 9,366.6 4,391.6 -21,917.5 -19,256.5
Financial derivatives (other than reserves) .. 370.0 799.9 2,168.5 5,136.2
Other investment .......................................... -11,537.2 -1,654.1 10,453.9 10,711.4
Reserve assets .............................................. 2,803.9 1,198.0 6,889.9 -7,057.1
Net errors and omissions .................................... 6,024.2 -1,659.4 -4,275.5 -4,940.0
1) Positive figures (+) show increase in net assets, negative figures (-) show decrease in net
assets.
116
Japan's external assets (overseas assets held by residents in Japan) as of the

end of 2022 amounted to 1,338.2 trillion yen, while its external liabilities
(assets held in Japan by nonresidents) were 919.6 trillion yen. As a result,
Japan's net international investment position (external assets minus
external liabilities) were 418.6 trillion yen.
Table 11.5
Trends in Japan's International Investment Position 1)
(Billion yen)
Item 2018 2019 2020 2021 2022
Assets .................................... 1,018,047 1,090,549 1,149,589 1,257,141 1,338,236
Liabilities .............................. 676,597 733,534 789,597 839,232 919,608
Net assets .............................. 341,450 357,015 359,992 417,908 418,629
1) End of year.
Japan's reserve assets remained at around 220 billion U.S. dollars during
the period from 1996 to 1998. Beginning in 1999, reserve assets increased
continuously. A downward trend started at the end of 2012, but at the end
of 2017, assets began to increase again, and increased to the end of 2021.
They amounted to 1,227.6 billion U.S. dollars (down 12.7 percent from the
previous year) at the end of 2022, marking a decrease for the first time in 6
years.
Table 11.6
Reserve Assets
(Million U.S. dollars)
Foreign Other
IMF reserve 2)
End of year Total currency SDRs Gold reserve
1) position 3)
reserves assets
2018 1,270,975 1,208,958 11,464 18,484 31,531 538
2019 1,323,750 1,255,322 11,202 19,176 37,469 581
2020 1,394,680 1,312,160 15,147 20,215 46,526 632
2021 1,405,750 1,278,925 10,643 62,330 49,505 4,347
2022 1,227,576 1,103,907 10,817 59,275 49,295 4,282
1) Including securities in market value. 2) Market value. 3) Including Asian Bond Fund 2.
117
The yen began appreciating sharply in late 2008. From 2011 into 2012, the
exchange rate of yen to the U.S. dollar stayed between the higher 70 yen
range and the lower 80 yen range. In April 2013, the Bank of Japan
introduced Quantitative and Qualitative Monetary Easing (QQME) to put
an end to deflation. Based on this, the exchange rate shifted towards yen
depreciation. Subsequently, the yen strengthened from early to mid 2016,
followed by a leveling off phase from 2017. However, from March 2022,
factors such as trends in the interest rate difference between the U.S.A. and
Japan have led, with some fluctuations, to a weakening yen-dollar
exchange rate. As of April 2023, the exchange rate was 135.7 yen per U.S.
dollar.
Figure 11.5
Yen Exchange Rate against the U.S. Dollar
Yen
150
140
130
120
110
100
90
80
70
2008 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
3. International Cooperation
In Japan, there are diverse international cooperation donors: Official
Development Assistance (ODA) by the government, direct investments
and export credits by private corporations, grants by private non-profit
organizations, assistance activities by NGOs and volunteer citizen groups,
etc. With regard to ODA, there are various forms, including bilateral
assistance, which assists developing countries and regions directly, and
multilateral assistance, which contributes to international organizations.
118
Table 11.7
Financial Flows to Developing Countries
1)
Net disbursements Grant equivalent 2)
Item
2020 2021 2020 2021
Total value ............................................................ 32,472 38,494 … …
Official flows ...................................................... 18,558 16,356 … …
Official Development Assistance (ODA) ......... 13,660 15,765 16,260 17,634
Bilateral official development assistance 3) .... 10,243 11,621 13,181 13,716
3)
Grants ........................................................ 5,470 5,680 5,470 5,680
3)
Grant assistance ....................................... 3,068 3,257 3,068 3,257
Technical assistance ................................... 2,401 2,423 2,401 2,423
Loans ............................................................ 4,774 5,940 7,712 8,036
Contributions to multilateral institutions ....... 3,417 4,145 3,079 3,918
Other Official Flows (OOF) ............................. 4,898 591 … …
Export credits (over 1 year) ............................ 3 -286 … …
Direct investment and others .......................... 4,895 876 … …
Contributions to multilateral institutions ........ - - - -
Private Flows (PF) .............................................. 13,309 21,502 … …
Export credits (over 1 year) .............................. -5,414 -570 … …
Direct investment .............................................. 25,031 26,702 … …
Other bilateral securities and claims ................. -4,213 -5,911 … …
Contributions to multilateral institutions .......... -2,095 1,280 … …
Grants by private non-profit organizations ......... 606 636 … …
ODA as percentage of GNI (%) ............................ 0.26 0.31 0.31 0.34
ODA as percentage of GNI (DAC average) (%) ... … … 0.33 0.33
1) Net disbursements at current prices and exchange rate designated by DAC. Negative figures
(-) indicate that loan repayments, etc., exceeded the disbursed amount. 2) Grant equivalent at
current prices and exchange rate designated by DAC. 3) Including bilateral grants through
multilateral institutions.
Source: Ministry of Foreign Affairs; Ministry of Finance; OECD.
In the ODA framework, Japan's spending (on a grant equivalent basis at

current prices) in 2021 was increased by 8.4 percent over the previous year
to 17.6 billion U.S. dollars. Japan contributed to the growth of developing
countries as the world's number-one ODA donor for 10 consecutive years
up until 2000, but recently Japan's ODA budget has declined to about half
its peak level.
With regard to the comparison of the ODA grant equivalents in 2021 of the
member countries of the Development Assistance Committee (DAC) of
the OECD, Japan was the third-largest contributor behind the U.S.A. and
Germany. The ratio of Japan's ODA grant equivalent to Gross National
Income (GNI) was 0.34 percent, or an increase of 0.03 percentage points
compared with that of the previous year.
119
Figure 11.6
Trends in ODA by Country 1)
Billion U.S. dollars

50
45
40
35 U.S.A.
30
Germany
25
U.K.
20
15 France
10 Sweden
Japan
5
Norway
0
2008 09 10 11 12 13 14 15 16 17 18 19 20 21
1) 2008-2017 data: Net disbursement at current prices and exchange rate designated by DAC.
2018-2021 data: Grant equivalent at current prices and exchange rate designated by DAC.
Source: OECD.
Of the 17.6 billion U.S. dollars in ODA grant equivalent provided by Japan
in 2021, 13.7 billion was bilateral ODA (up 4.1 percent year-on-year), and
3.9 billion was ODA contributed through multilateral institutions (up 27.2
percent).
Bilateral ODA (grant equivalent at current prices) provided in 2021
consisted of 3.3 billion U.S. dollars of grant assistance, 2.4 billion of
technical assistance, and 8.0 billion of loans.
By region, bilateral ODA (net disbursement at current prices, including
assistance to designated countries in developing regions) was distributed
as follows: Asia, 5,413 million U.S. dollars; Sub-Saharan Africa, 1,630
million U.S. dollars; Middle East and North Africa, 1,211 million U.S.
dollars; Oceania, 619 million U.S. dollars; Latin America and the
Caribbean, 480 million U.S. dollars; and Europe, 51 million U.S. dollars.
120
Table 11.8
Regional Distribution of Bilateral ODA 1) (2021)
Region Net disbursements
Total ..................................................... 11,625
Asia ................................................... 5,413
ASEAN .......................................... 1,036
Middle East and North Africa ............ 1,211
Sub-Saharan Africa ............................ 1,630
Latin America and the Caribbean ....... 480
Oceania ............................................. 619
Europe ............................................... 51
Multiple regions, etc. ......................... 2,221
1) Net disbursement at current prices and exchange rate
designated by DAC. Including assistance to designated
countries in developing regions. The negative figure (-)
indicates that repayments of loans, etc. exceeded the
disbursed amount.
Source: Ministry of Foreign Affairs.
Bilateral ODA in 2021 (including assistance to designated countries in

developing regions) was broken down by purpose (on a commitments
basis) as follows: 35.8 percent for improving "economic infrastructure and
services" (including transport, storage and energy), followed in descending
order by "social infrastructure and services", at 27.8 percent.
Figure 11.7
Distribution of Bilateral ODA by Sector 1) (2021)
Others Economic infrastructure

19.7 and services
Multi-sector aid 35.8%

8.3 15.41 billion
U.S. dollars
8.4
Production sectors
27.8
Social infrastructure
and services
1) Commitments basis. Including assistance to designated countries in developing regions.
Source: Ministry of Foreign Affairs.
121
In addition to the financial assistance described above, Japan has also been
active in the areas of human resources development and technology
transfer through its ODA activities, both of which are vital to the growth of
developing countries.
Table 11.9
Number of Persons Involved in
Technical Cooperation by Type 1)
Type of cooperation FY2021
Total ............................................. 26,665
Trainees received ....................... 21,735
Dispatched
Experts ..................................... 2,583
Research team ......................... 1,992
Japan Overseas
Cooperation Volunteers ........ 312
Other volunteers ...................... 43
1) Numbers of persons newly received/dispatched
in the aforementioned fiscal year.
Source: Japan International Cooperation Agency.
122
Chapter 12
Labour
© FUKUSHIMA Hidekazu
Cats relaxing on the knees of the factory workers.

In 2022, there were 10,440 thousand employed persons in the manufacturing
industry.
CHAPTER 12 LABOUR
1. Labour Force
After the population in Japan aged 15 years old and over peaked at 111.18
million people in 2017, it has been broadly flat since 2018. In 2022, this
population reached 110.38 million people.
In the 2000s, the labour force (among the population aged 15 years old and
over, the total of employed persons and unemployed persons) had been on
a downward trend due to the aging of the population, but began to increase
in 2013 and continued to increase until 2019. In 2020, there was a decrease
due to the effects of COVID-19, but in 2021, the figure increased. In 2022,
it was 69.02 million, a decrease of 0.05 million (0.1 percent) from the
previous year and the first decrease in 2 years.
The labour force participation rate (the rate of the labour force to the
population aged 15 years old and over) was 62.5 percent in 2022 (up 0.4
percentage points from the previous year). Observed by gender, the rate
was 71.4 percent for males (up 0.1 percentage points) and 54.2 percent for
females (up 0.7 percentage points).
124
CHAPTER 12 LABOUR
Table 12.1
Population by Labour Force Status
(Thousands)
Population Unemploy-
Labour force Not in labour
Year aged 15 years ment rate
force
old and over Total Employed Unemployed (%)
Total
2005 110,080 66,510 63,560 2,940 43,460 4.4
2010 111,110 66,320 62,980 3,340 44,730 5.1
2015 111,100 66,250 64,020 2,220 44,790 3.4
2019 111,120 69,120 67,500 1,620 41,910 2.4
2020 111,080 69,020 67,100 1,920 41,970 2.8
2021 110,870 69,070 67,130 1,950 41,710 2.8
2022 110,380 69,020 67,230 1,790 41,280 2.6
Males
2005 53,230 39,010 37,230 1,780 14,160 4.6
2010 53,650 38,500 36,430 2,070 15,130 5.4
2015 53,650 37,730 36,390 1,350 15,880 3.6
2019 53,660 38,410 37,440 960 15,200 2.5
2020 53,640 38,400 37,240 1,150 15,200 3.0
2021 53,510 38,270 37,110 1,170 15,200 3.1
2022 53,280 38,050 36,990 1,070 15,180 2.8
Females
2005 56,850 27,500 26,330 1,160 29,300 4.2
2010 57,460 27,830 26,560 1,280 29,600 4.6
2015 57,460 28,520 27,640 890 28,910 3.1
2019 57,470 30,720 30,050 660 26,700 2.2
2020 57,440 30,630 29,860 760 26,770 2.5
2021 57,350 30,800 30,020 780 26,510 2.5
2022 57,110 30,960 30,240 730 26,100 2.4
The female labour force participation rate by age group is in an M-shaped

curve, which implies that females leave the labour force when they get
married or give birth and then rejoin the labour force after their child has
grown. However, the shape of the M-shaped curve has been changing in
recent years. A comparison with the data from 20 years ago (2002) shows
that, in 2022, the 35-39 age group replaced the 30-34 age group to form
the bottom of the M-shaped curve. The participation rate rose by 20.3
125
CHAPTER 12 LABOUR
percentage points in the 30-34 age group and by 17.1 percentage points in
the 35-39 age group, making the bottom of the M-shaped curve flatter and
more gradual. While this is thought to be greatly affected by the
progression of enhancement of the legal system to balance work and
childcare, and the improvement of work environment of companies, there
are also effects from the trend of getting married and having children later
in life.
Figure 12.1
Labour Force Participation Rate by Gender and Age Group
% %
100 100
Males Females
80 80
60 60
40 40
2002
2022
20 20
0 0
15 20 25 30 35 40 45 50 55 60 65 70 15 20 25 30 35 40 45 50 55 60 65 70
｜｜｜｜｜｜｜｜｜｜｜＋｜｜｜｜｜｜｜｜｜｜｜＋
19 24 29 34 39 44 49 54 59 64 69 19 24 29 34 39 44 49 54 59 64 69
2. Employment
The number of employed persons declined between 2008 and 2012, before
increasing between 2013 and 2019. Although there was a decrease for the
first time in 8 years in 2020, the number began increasing in 2021, and the
increase amounted to 0.1 million in 2022, from 67.13 million (60.4 percent
of the population aged 15 years old and over) in the previous year to 67.23
million (60.9 percent).
126
CHAPTER 12 LABOUR
(1) Employment by Industry

In 2022, the primary industry accounted for 3.1 percent of the total of
employed persons; the secondary industry, 23.1 percent; and the tertiary
industry, 73.8 percent.
Figure 12.2
Structure of Employment by Country 1)
%
100
80
Tertiary
60 industry
40
20 Secondary
industry
Primary
0
industry
Japan U.K. U.S.A. France Poland Turkey Viet Nam
(1990) 2) (2010) 3) (2022) 4) (2019) (2022) (2021) (2021) (2021) (2022)
1) As to the countries other than Japan, the industrial classification is the International Standard Industrial
Classification of All Economic Activities, Revision 4 (ISIC Rev.4).
2) The industrial classification is the 10th revision of the Japan Standard Industrial Classification (JSIC).
3) The industrial classification is the 12th revision of the JSIC.
4) The industrial classification is the 13th revision of the JSIC.
Source: Statistics Bureau, MIC; International Labour Organization.
Over the long term, the percentage of persons employed in the primary
industry and in the secondary industry have been continually falling, while
the percentage of persons employed in the tertiary industry has been
continually rising. Within the tertiary industry, the number of those in
"medical, health care and welfare" has been increasing.
Depending on the industrial sector, a difference was seen in the
employment tendency between males and females. In 2022, the percentage
of male employment was highest in "mining and quarrying of stone and
gravel", followed by "fisheries" and "construction". The percentage of
female employment was highest in "medical, health care and welfare",
followed by "accommodations, eating and drinking services" and
"living-related and personal services and amusement services".
127
CHAPTER 12 LABOUR
Table 12.2
Employment by Industry
(Thousands)
Percentage 1)
Industries 2019 2020 2021 2022
Males Females
2)
Total .............................................. 67,500 67,100 67,130 67,230 55.0 45.0
Primary industry ........................... 2,220 2,130 2,080 2,050 62.7 37.3
Agriculture and forestry ................ 2,070 2,000 1,950 1,920 61.5 38.5
Fisheries ........................................ 150 130 130 130 83.3 16.7
Secondary industry ....................... 15,700 15,470 15,330 15,250 74.0 26.0
Mining and quarrying of stone
and gravel ............................... 20 20 30 20 100.0 0.0
Construction ................................. 5,000 4,940 4,850 4,790 82.3 17.7
Manufacturing ............................... 10,680 10,510 10,450 10,440 70.1 29.9
Tertiary industry .......................... 48,080 48,260 48,660 48,810 48.9 51.1
Electricity, gas, heat supply
and water ................................ 280 320 340 320 81.3 18.8
Information and communications ... 2,300 2,410 2,580 2,720 71.7 28.3
Transport and postal activities ....... 3,480 3,490 3,520 3,510 78.1 21.9
Wholesale and retail trade .............. 10,640 10,620 10,690 10,440 47.6 52.4
Finance and insurance .................... 1,670 1,670 1,680 1,600 45.6 54.4
Real estate and goods rental
and leasing .............................. 1,300 1,400 1,420 1,410 58.9 41.1
Scientific research, professional
and technical services .............. 2,410 2,450 2,540 2,540 62.2 37.8
Accommodations, eating
and drinking services ............... 4,210 3,920 3,710 3,810 38.1 61.9
Living-related and personal services
and amusement services ........... 2,420 2,360 2,270 2,250 39.6 60.4
Education, learning support ........... 3,360 3,410 3,480 3,490 41.5 58.5
Medical, health care and welfare .... 8,470 8,670 8,910 9,080 25.0 75.0
Compound services ....................... 540 510 500 500 58.0 42.0
Services, N.E.C. ............................ 4,570 4,540 4,520 4,630 59.0 41.0
Government 3) ............................... 2,430 2,490 2,500 2,510 67.9 32.1
1) Calculated from figures rounded to thousands.
2) Including "Industries unable to classify". 3) Excluding elsewhere classified.
128
CHAPTER 12 LABOUR
Figure 12.3
Distribution of Employment by Industry (2022)
%
0 20 40 60 80 100
Primary industry Industries unable to classify
Secondary industry Tertiary industry
Wholesale
Manufacturing and 15.5
retail Others
trade
Medical, health Education,

Agriculture, care and welfare learning support
forestry and Construction Transport and
fisheries postal activities
Mining and Accommodations,
quarrying of stone and gravel eating and drinking services
(2) Employment by Occupation
In terms of occupation, the "administrative and managerial workers" has

been declining in recent years. The number was 1.24 million in 2022,
down 3.9 percent from the previous year's 1.29 million. In contrast,
"service workers" such as home-care workers have been on a rising trend
over the past few years due to a trend toward a service-oriented economy,
the aging population, and improvements on welfare services. There is also
a rising trend in the number of "professional and engineering workers".
The number was 12.77 million in 2022, which accounted for
approximately 19.0 percent of the total employed persons.
129
CHAPTER 12 LABOUR
Table 12.3
Employment by Occupation
(Thousands)
Percentage
Occupation 2019 2020 2021 2022
Males Females
1)
Total ..................................................... 67,500 67,100 67,130 67,230 55.0 45.0
Administrative and managerial workers ...... 1,290 1,290 1,290 1,240 87.1 12.9
Professional and engineering workers .... 11,790 12,210 12,650 12,770 52.1 47.9
Clerical workers ...................................... 13,260 13,600 13,890 14,010 39.5 60.5
Sales workers .......................................... 8,590 8,520 8,480 8,260 55.0 45.0
Service workers ...................................... 8,520 8,310 8,060 8,170 31.6 68.4
Security workers ..................................... 1,330 1,330 1,300 1,290 93.0 7.0
Agricultural, forestry and fishery workers ... 2,170 2,090 2,030 1,990 64.8 35.2
Manufacturing process workers .............. 9,110 8,730 8,650 8,700 70.2 29.8
Transport and machine operation workers ... 2,220 2,180 2,140 2,160 96.3 3.7
Construction and mining workers ........... 2,940 2,930 2,840 2,760 97.5 2.5
Carrying, cleaning, packaging,
and related workers ........................... 4,920 4,820 4,880 4,890 55.0 45.0
1) Including figures unclassifiable or not reported.
In 2022, the percentages of male and female employed persons by

occupation show that males were particularly prominent among
"construction and mining workers" (97.5 percent) and "transport and
machine operation workers" (96.3 percent). Females were prominent
among "service workers" (68.4 percent) and "clerical workers" (60.5
percent).
(3) Employment by Employment Pattern
With regard to the trends in the number of employed persons by

employment pattern, the number of non-regular staff members (such as
part-time workers and agency-dispatched workers) has been increasing
continuously for 10 consecutive years since 2010. However, in 2020, it
decreased for the first time in 11 years, and in 2021 it decreased again for
the second consecutive year. In 2022, the number began increasing again,
for the first time in 3 years. The number of regular staff members was on a
slight declining trend in the 2000s and the early 2010s, but began to rise in
2015 and has continued to rise for 8 years in a row.
In 2022, there were 56.89 million employees (excluding company
130
CHAPTER 12 LABOUR
executives), 21.01 million of whom, or 36.9 percent, were non-regular

staff members. The ratio of non-regular staff members among all male
employees was 22.2 percent, while the corresponding ratio for females was
53.4 percent, revealing a large difference between the genders.
With regard to the percentage of non-regular staff members to the total of
regular and non-regular staff members by gender and age group, for males,
the percentages of young people aged 15 to 24 years old, and the elderly
aged 65 years old and over were high. Among females, non-regular staff
members accounted for more than 50 percent across all age groups, with
the exception of females aged 25 to 34 and 35 to 44 years old.
Table 12.4
Employment by Employment Pattern (2022)
(Thousands)
Employees 1) Regular staff Non-regular staff

Percentage Percentage
members members
Total ............ 56,890 35,880 63.1 21,010 36.9
Males ........ 30,080 23,390 77.8 6,690 22.2
Females ..... 26,810 12,490 46.6 14,320 53.4
1) Excluding company executives.
Figure 12.4
Employment Pattern by Gender and Age Group (2022)
Males Females
% %
100 100
Regular
staff
80 members 80
60 60
40 40
Non-regular
20 staff 20
members
0 0
15 25 35 45 55 65 15 25 35 45 55 65
| | | | | + | | | | | +
24 34 44 54 64 24 34 44 54 64
131
CHAPTER 12 LABOUR
With regard to the main reasons for the current employment patterns of
males and females who are non-regular staff members, for males, the
reason "For working at convenient times" was the most popular, on
average in 2022, with 1.99 million males (31.2 percent) choosing this
reason, up 0.12 million people as compared to the previous year. The most
popular reason among females was also "For working at convenient times",
with 4.80 million females (34.5 percent) choosing this reason, up 0.10
million people.
The employment rate of new graduates of high schools, universities, and
other educational institutions declined at the time of the bankruptcy of the
major American securities firm Lehman Brothers, and after that a
generally increasing trend continued against a backdrop of issues like
labour shortages and economic expansion. However, due to the effects of
the COVID-19 pandemic, there was a decline in the employment rate of
new graduates graduating in March 2021. After that, there was an increase
in the employment rate of new graduates graduating in March 2023.
132
CHAPTER 12 LABOUR
3. Unemployment
In 2022, the number of unemployed persons stood at 1.79 million people,
down 8.2 percent from the previous year, recording the first decrease in 3
years. The unemployment rate was 2.6 percent, down 0.2 percentage
points from the previous year, the first increase in 4 years.
The active job openings-to-applicants ratio had been on an upward trend
from 2009 to 2019. However, as a result of the impact of COVID-19, the
ratio declined in 2020 and 2021, but in 2022 it stood at 1.28 times, up 0.15
points from the previous year.
Figure 12.5
Unemployment Rate and Active Job Openings-to-Applicants Ratio
% Times
6 1.8
Unemployment rate 1)
(left scale) 1.6

5 ▼
1.4
4 1.2
1.0
3
0.8
2 0.6
▲ 0.4
1 Active job opinings-to-applicants ratio
(right scale) 0.2
0 0.0
1986 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 22
1) The data for 2011 indicates supplementary estimated figure.
Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare.
133
CHAPTER 12 LABOUR
The breakdown by gender shows that the unemployment rate in 2022 was
2.8 percent among males, and 2.4 percent among females. The
unemployment rate among males has been higher since 1998.
The unemployment rate was higher in younger age groups than in other
age groups, in males and females alike.
Figure 12.6
Unemployment Rates by Gender and Age Group (2022)
%
0 1 2 3 4 5 6
Males
15-24
Females
25-34
35-44
45-54
55-64
65+
With regard to the total number of unemployed persons in 2022, by reason

for job-seeking, the major reasons were: (i) involuntary separation due to
corporate or business circumstances, or reaching retirement age limit, 0.46
million persons; (ii) voluntary separation for personal or family reasons,
0.72 million persons; (iii) new job seekers due to the necessity to earn
income, 0.24 million; and (iv) new job seekers just graduated from school,
0.07 million.
In terms of the duration of unemployment, the largest was unemployed for
"1 year or more" (0.64 million persons), followed by "less than 3 months"
(0.62 million persons).
134
CHAPTER 12 LABOUR
Figure 12.7
Unemployment Rates by Country
%
14
12 Italy
France
10
8 Canada
6 U.S.A.
U.K.
4 Germany
Korea, Rep. of
2
Japan
0
2013 14 15 16 17 18 19 20 21 22
Source: Statistics Bureau, MIC; Cabinet Office.
4. Hours Worked and Cash Earnings

In 2022, the monthly average of total hours worked was 136.1 per regular
employee (in establishments with 5 or more regular employees), up 0.1
percent from the previous year, and an annual average was 1,633 hours.
Of the total monthly hours worked per regular employee, 126.0 were
scheduled hours worked, representing a decrease of 0.3 percent from the
previous year. Non-scheduled hours worked such as overtime work were
10.1 hours, representing an increase of 4.6 percent from the previous year.
Monthly days worked per regular employee were 17.6 days in 2022.
135
CHAPTER 12 LABOUR
In 2022, the monthly average of total cash earnings per regular employee
(in establishments with 5 or more regular employees) was 325,817 yen.
This total amount consists of 267,461 yen in "contractual cash earnings"
(total for "scheduled cash earnings" and "non-scheduled cash earnings" for
working overtime, on holidays and late at night, as well as other
allowances), and 58,356 yen in "special cash earnings" (which include
summer and year-end bonuses, payments to celebrate employees'
marriages, etc.).
Table 12.5
Hours Worked and Cash Earnings 1) (Monthly average)
Hours Worked Cash Earnings (1,000 yen)
Days
Year Non- Non- Special 2)
worked Total Scheduled Total Contractual Scheduled
scheduled scheduled
2018 18.4 142.2 131.4 10.8 324 265 245 20 59
2019 18.0 139.1 128.5 10.6 323 264 244 20 58
2020 17.7 135.1 125.9 9.2 318 262 245 17 56
2021 17.7 136.1 126.4 9.7 319 264 246 18 56
2022 17.6 136.1 126.0 10.1 326 267 249 19 58
Indices (2020 average = 100)
2018 - 105.2 104.4 117.5 101.6 100.9 99.9 - -
2019 - 102.9 102.0 115.1 101.2 100.7 99.8 - -
2020 - 100.0 100.0 100.0 100.0 100.0 100.0 - -
2021 - 100.7 100.4 105.2 100.3 100.5 100.3 - -
2022 - 100.8 100.1 110.0 102.3 101.9 101.4 - -
1) Establishments with 5 or more regular employees.
2) Bonuses and other special allowances.
The average earnings (scheduled cash earnings) in Japan go up with age

until roughly the 40s to mid-50s and then decline. In revising salaries,
about 40 percent of all companies emphasize "corporate performance", but
in the context of worsening labour shortages, a rising percentage of
companies in recent years have been placing the greatest emphasis on
"securing and retaining their labour force".
136
CHAPTER 12 LABOUR
Figure 12.8
Monthly Scheduled Cash Earnings by Size of Enterprise, Gender,
and Age Group (2022)
Thousand yen Thousand yen

600 600
Males Females
500 500
400 400
300 300
200 200
1,000 and over
100-999
100 100
10-99 workers
0 0
20 25 30 35 40 45 50 55 60 65 70 20 25 30 35 40 45 50 55 60 65 70
｜｜｜｜｜｜｜｜｜｜｜ + ｜｜｜｜｜｜｜｜｜｜｜ +
19 24 29 34 39 44 49 54 59 64 69 19 24 29 34 39 44 49 54 59 64 69
137
Chapter 13
Family Budgets and Prices
© KAMIKURA
© KAMIKURA Tomoko
Meguro saury.
Pacific saury is one of the most popular fish in Japan. It is eaten raw, grilled, or
boiled.
CHAPTER 13 FAMILY BUDGETS AND PRICES
1. Family Budgets
In 2020, there were approximately 56 million private households in Japan,
of which about 62 percent are two-or-more-person households and about
38 percent are one-person households. Family budgets vary significantly
depending on the employment situation and ages of their members. In this
section, family budgets in various types of households are described on the
basis of the 2022 results of the "Family Income and Expenditure Survey".
(1) Income and Expenditure
(A) Two-or-more-person Households
The 2022 average monthly consumption expenditures per

two-or-more-person household (the average number of household
members being 2.91 and the average age of the household head being 60.1
years) were 290,865 yen. Compared to the previous year, it increased by
4.2 percent in nominal terms and increased by 1.2 percent in real terms.
The share of food expenses to total consumption expenditures (Engel's
coefficient) was 26.6 percent.
Results for 2022 marked an increase, for the second consecutive year, in
the real annual change rate in consumption expenditures.
Figure 13.1
Average Monthly Consumption Expenditures per Household 1)
(Two-or-more-person households) (2022)

%
0 20 40 60 80 100
Consumption
Food Others
expenditures 8.4 14.2 9.2
26.6% 18.8
290,865 yen
Housing 6.4
Fuel, light & water charges Culture & recreation
Furniture & household utensils 4.2 Education 3.9
Transportation & communication
Clothing & footwear 3.1 Medical care 5.1
1) Use Classification.
139
(a) Workers' Households

A workers' household means a household of which the head is employed
by a company, public office, school, factory, store, etc. The average
income of workers' households (the average number of household
members being 3.24 and the average age of the household head being 50.4
years) was 617,654 yen in 2022. With regard to the breakdown of income,
regular income by the household head makes up the majority. The ratio of
income by spouses has been increasing little by little, however.
Table 13.1
Average Monthly Income and Expenditures per Household (Workers' households 1))
(Thousand yen)
Item 2018 2019 2020 2021 2022
Income (A) ................................................... 558.7 586.1 609.5 605.3 617.7
Wages and salaries ..................................... 512.6 536.3 536.9 551.0 564.0
Others ........................................................ 46.1 49.8 72.7 54.3 53.6
Disposable income (A-C) ............................. 455.1 476.6 498.6 492.7 500.9
Expenditures ................................................ 418.9 433.4 416.7 422.1 437.4

Consumption expenditures (B) ................... 315.3 323.9 305.8 309.5 320.6
Non-consumption expenditures (C) 2) ......... 103.6 109.5 110.9 112.6 116.7
Surplus ((A-C)-B) ........................................ 139.8 152.8 192.8 183.2 180.3
Net increase in deposits and insurance ........ 121.1 149.7 175.5 168.7 168.2
Average propensity to consume (%) 3) .......... 69.3 67.9 61.3 62.8 64.0
Ratio of net increase in deposits and
insurance (%) 4) ......................................... 26.6 31.4 35.2 34.2 33.6
Engel's coefficient (%) .................................. 24.1 23.9 26.0 25.4 25.1
Annual change (%) (real terms)
Disposable income ...................................... 3.6 4.1 4.6 -0.9 -1.3
Consumption expenditures ......................... -0.5 2.1 -5.6 1.5 0.6
1) Two-or-more-person households. 2) Direct taxes, social insurance contributions, etc. 3) Ratio of
consumption expenditures to disposable income. 4) Ratio of net increase in deposits and insurance to
disposable income.
Disposable income, calculated as income minus non-consumption

expenditures such as taxes and social insurance contributions, was 500,914
yen. Of this disposable income, 320,627 yen was used for living expenses
(consumption expenditures), such as food and housing expenses, while the
remainder (surplus), totaling 180,286 yen, was applied to savings, life
insurance premiums and repaying debts such as housing loans.
140
Figure 13.2
Balance of Income and Expenditures
(Monthly average per household, workers' households 1)) (2022)
Others
Other household
members 2.5
8.7 Household average
Persons per household: 3.24
Spouse of Earners per household: 1.79
household heads Age of head: 50.4 years old
15.8
Income
617,654 yen Household heads
73.0％
Carry-over from previous
month 174,247 yen
Withdraw of deposits cashed &
loans for purchase on credit, etc.
Disposable income
Receipts 500,914 yen 451,936 yen

1,243,837 yen
Non-consumption
expenditures 116,740 yen Surplus 180,286 yen
Disbursements
1,243,827 yen 320,627 yen 652,518 yen
▲ ▲ ▲
Consumption Savings & debts Carry-over to next
expenditures payments, etc. month 153,952 yen
Consumption
expenditures 2)
320,627 yen
Others
Food
18.4
25.1%
Culture & recreation 9.3
Housing 6.3
Education 5.7
15.8
Fuel, light & water charges 7.6
Transportation Furniture & household utensils 4.1
& communication Clothing & footwear 3.5
Medical care 4.3
1) Two-or-more-person households. 2) Use Classification.

141
A comparison of consumption expenditures by category showed that

spending on "culture and recreation" and "transportation and
communication", etc. increased from the previous year in real terms, while
spending on "education" and "food", etc. decreased in real terms.
Figure 13.3
Year-on-Year Change in Average Monthly Income and Consumption
Expenditures per Household (Workers' households 1))
% Income % Consumption expenditures
6 6
4 4 Nominal terms
CPI Real terms
2 2
0 0
-2
CPI
-2
Nominal terms
Real terms
-4 -4
-6 -6
2018 19 20 21 22 2018 19 20 CPI 21 22
1) Two-or-more-person households.
Family budgets differ among households according to their stages in life.

Observed by age group of the household head, the 2022 average monthly
disposable income of workers' households was the highest in households
in the 50s group (550,095 yen), followed by those in the 40s group
(534,558 yen) and the 30s group (498,393 yen).
The 2022 average propensity to consume (the ratio of consumption
expenditures to disposable income) was the lowest in households in the
under 29 group and the 30s group (55.0 percent). The figure was 61.1
percent in the 40s group, 65.9 percent in the 50s group, 75.8 percent in the
60s group, and 69.9 percent in the 70 and over group. The percentage
tends to be higher as the age goes up, except for the 70 and over group.
Meanwhile, a net increase in financial assets (an amount added to savings)
was the highest in households in the 30s group, followed by those in the
50s group.
142
Figure 13.4
Average Monthly Family Income and Consumption Expenditures
per Household by Age Group of Household Head
(Workers' households 1)) (2022)
Thousand yen
600
Disposable income Consumption
500 expenditures Net increase
in financial
400 assets
300
200
100
0
Under 29 30-39 40-49 50-59 60-69 70 and over
(b) Non-working Elderly Households

According to an analysis of the average monthly income and expenditures
of non-working elderly households (two-or-more-person households where
the age of the household head is 60 and over), the average income was
247,382 yen in 2022. Social security benefits amounted to 198,017 yen,
thus accounting for 80.0 percent of income.
Disposable income averaged 214,594 yen, while consumption
expenditures averaged 240,827 yen. The average propensity to consume in
non-working elderly households was 112.2 percent, which means
consumption expenditures exceeded disposable income. The deficit of
disposable income to consumption expenditures (26,233 yen) increased
from that of the previous year (16,903 yen). This deficit was financed by
withdrawing financial assets such as deposits, etc.
143
Figure 13.5
Average Monthly Income and Expenditures per Household 1) 2)
(Non-working elderly households 3)) (2022)
Income (247,382 yen)
Social security benefits Other income

80.0% 20.0
▲
Disposable income (214,594 yen) Deficit
(26,223 yen)
Consumption expenditures 4) (240,827 yen)
Other
Food 10.0 11.9 expenditures
29.5 26.1
▲ ▲
Housing Culture & recreation
Non-consumption 6.9 9.0
expenditures
(32,788 yen) Fuel, light & water charges
Transportation & communication
Medical care
6.6
1) The percentage of "Social security benefits" and "Other income" in the graph is in
proportion to the income. 2) The percentage from "Food" to "Other expenditures" in the graph
is in proportion to the consumption expenditures. 3) Two-or-more-person households.
(B) One-person Households

The average monthly consumption expenditures of one-person households
in 2022 were 161,753 yen, up 4.3 percent in nominal terms and up 1.3
percent in real terms from the previous year. By age group, the average
monthly consumption expenditures were 158,198 yen for the under 34
group, 186,503 yen for the 35-59 group, and 150,409 yen for the 60 and
over group. Spending on categories such as "fuel, light and water charges",
"medical care" and "furniture and household utensils" tended to be larger
in older age groups. On the other hand, expenditures on "housing",
"clothing and footwear" and "culture and recreation" decreased in each
successively older age groups.
144
Table 13.2
Average Monthly Consumption Expenditures per Household by Age Group
(One-person households) (2022)
(Yen)
Average Under 34 35-59 60 and over
Item Actual ratio Actual ratio Actual ratio Actual ratio
figures (%) figures (%) figures (%) figures (%)
Consumption expenditures 1) ... 161,753 100.0 158,198 100.0 186,503 100.0 150,409 100.0
Food ................................ 39,069 24.2 34,385 21.7 42,899 23.0 38,913 25.9
Housing ........................... 23,300 14.4 36,676 23.2 30,966 16.6 14,196 9.4
Fuel, light and water
charges ........................... 13,098 8.1 9,272 5.9 12,352 6.6 14,959 9.9
Furniture and household
utensils ........................... 5,487 3.4 3,577 2.3 5,359 2.9 6,291 4.2
Clothing and footwear ...... 5,047 3.1 7,643 4.8 5,722 3.1 3,697 2.5
Medical care ..................... 7,384 4.6 5,348 3.4 7,150 3.8 8,285 5.5
Transportation and
communication ............... 19,303 11.9 20,084 12.7 24,621 13.2 16,269 10.8
Education ......................... 0 0.0 0 0.0 0 0.0 0 0.0
Culture and recreation ...... 17,993 11.1 21,908 13.8 19,790 10.6 15,558 10.3
Others .............................. 31,071 19.2 19,306 12.2 37,644 20.2 32,240 21.4
Annual change (%) (real terms)
Consumption expenditures ...... 1.3 … … …
(2) Savings and Debts

Two-or-more-person households in 2022 showed that the average amount
of savings per workers' household was 15.08 million yen, resulting in a
ratio to yearly income (7.68 million yen) of 196.4 percent. The median
value of household savings (the current household savings of the
household exactly in the middle when all households, excluding those with
0 savings, are listed in order from lowest to highest amount of savings)
was 9.28 million yen. On the other hand, the average amount of debts per
household was 8.79 million yen, which was 114.5 percent relative to
yearly income. The median value of households holding debts (the current
household debts of the household exactly in the middle when all
households, excluding those with 0 debts, are listed in order from lowest to
highest amount of debts) was 14.90 million yen. The portion of household
debts accounted for by "housing and/or land" averaged 8.13 million yen. A
total of 43.3 percent of workers' households held "debts for housing and/or
land".
145
Table 13.3
Average Amount of Savings and Debts (Workers' households 1))
(Thousand yen)
Ratio of Ratio of Ratio of
Yearly savings to debts households
Year Savings Debts Housing
income yearly to yearly holding
income (%) and/or land income (%) debts (%)
2018 7,290 13,200 181.1 8,210 7,610 112.6 54.6

2019 7,360 13,760 187.0 8,550 7,980 116.2 55.3
2020 7,400 13,780 186.2 8,510 7,910 115.0 54.3
2021 7,490 14,540 194.1 8,560 7,910 114.3 53.4
2022 7,680 15,080 196.4 8,790 8,130 114.5 53.2
By age group of household head, the average amount of savings was found
to be the highest in the 70s and over group, while debts were the highest in
the 30s group.
Table 13.4
Amount of Savings and Debts by Age Group of Household Head
(Workers' households 1)) (2022)
(Million yen)
Under 70 and
Item Average 30-39 40-49 50-59 60-69
29 over
Yearly income ................................ 7.68 5.75 6.96 7.93 8.74 6.80 6.05
Savings .......................................... 15.08 4.38 8.64 11.56 18.00 21.80 21.91
Financial institutions .................... 14.56 4.14 8.33 11.09 17.06 21.57 21.89
Demand deposits ....................... 5.56 2.58 4.38 5.10 5.69 7.26 6.91
Time deposits ............................ 3.84 0.32 1.47 2.31 4.58 6.96 7.68
Life insurance and non-life
insurance ................................. 3.21 0.35 1.39 2.50 4.34 4.63 2.90
Securities .................................. 1.94 0.88 1.09 1.18 2.45 2.72 4.40
Non-financial institutions ............. 0.52 0.24 0.31 0.46 0.94 0.24 0.03
Debts ............................................. 8.79 7.41 15.75 12.46 6.08 2.49 1.73
Housing and/or land .................... 8.13 6.90 14.96 11.75 5.41 2.00 1.21
Other than housing and/or land .... 0.45 0.35 0.58 0.51 0.42 0.31 0.43
Monthly and yearly installments ... 0.21 0.16 0.21 0.20 0.25 0.17 0.90
146
(3) Internet Shopping by Households

Due to popularization of computers, smartphones, etc., the use of Internet
shopping has been increasing. According to the "Survey of Household
Economy", the percentage of two-or-more-person households that utilize
Internet shopping has continued to increase since 2002, reaching 52.7
percent in 2022. Total monthly expenditures used on Internet shopping
amounted to an average of 20,810 yen per household.
Figure 13.6
Proportion of Households Ordered over the Internet
(Two-or-more-person households)
%
60
50
40
30
20
10
0
2004 06 08 10 12 14 16 18 20 22
Looking at the breakdown of total expenditures per two-or-more-person

households spent on Internet shopping, "food" was the highest at 22.3
percent, followed by "travel-related" at 14.5 percent, "clothing and
footwear" at 10.8 percent, "culture-related" (such as books and music
software) at 9.9 percent, and "home electronics and furniture" at 8.0
percent, etc.
147
Figure 13.7 割合（％）

Ratio of Expenditure on Goods and Services Ordered over the Internet
(Two-or-more-person households) (2022)
4)
Others
20.5 Food
22.3%
Gift items
4.5 Monthly expenditure
per household
3)
Medical care
20,810 yen
1)
4.7 Travel-
related
14.5
Insurance
4.7
Home
electronics Clothing
& 2) &
Furniture Culture-
footwear
8.0 related
10.8
9.9
1) Total of accommodation services, fares and package tours. 2) Total of books and other
reading materials, software (music, video, personal computer, TV game), digital books,
download music, video, applications and tickets. 3) Total of medicines and health foods.
4) Total of cosmetics, private transportation, other goods and services.
148
(4) Electronic Money

Use of electronic money has been increasing, as a means for settling
accounts that can be easily used at transportation facilities, convenience
stores, supermarkets, etc. Based on two-or-more-person households in the
"Survey of Household Economy", the percentage of households with
members who owned electronic money and the percentage of households
with members who used electronic money have been on an increasing
trend starting in 2008. In 2022, the percentage of households with
members who owned electronic money was 68.8 percent, and the
percentage of households with members who used electronic money was
59.0 percent.
Figure 13.8
Trends in Ownership and Utilization of Electronic Money
(Two-or-more-person households)
%
80
Proportion of households with members
70 who owned electronic money
60
50
40
30
20 Proportion of households with members

who used electronic money
10
0
2011 12 13 14 15 16 17 18 19 20 21 22
149
2. Prices
Producer prices fell in 2009 due to the bankruptcy of the major American
securities firm Lehman Brothers. From 2010 to 2013, prices fluctuated in
the range of plus or minus 3 percent, then rose in 2014 due to depreciation
of the yen, and fell from 2015 to 2016 due to the decline in international
commodity prices and a stronger yen. From 2018 to 2019, there was a drop
in global resource prices due to a worldwide economic slowdown brought
on by trade friction between the U.S.A. and China, and thus the size of the
increase in producer prices contracted. In 2020, producer prices declined
with global resource prices due to the COVID-19 pandemic. In 2021,
global resource prices increased due to worldwide economic recovery,
sparking an increase in producer prices. There was a further increase in
2022 due to a weaker yen, and a rise in global crude oil and natural gas
prices brought on by Russia's invasion of Ukraine.
Consumer prices began a rising trend in 2008 due to sharp increases in
imported raw material prices, but began to fall in 2009 as a result of falling
imported raw material prices due to the bankruptcy of the major American
securities firm Lehman Brothers, and the trend was generally downwards
until 2013. Consumer prices rose due to the increase in the consumption
tax to 8 percent in April 2014, but the stimulative effects of the tax
increase subsided by the first half of 2015. From the fourth quarter of 2016,
the upward trend continued, due to global resource prices (such as crude
oil) and exchange rates, but from 2018, trade friction between the U.S.A.
and China had a major impact. The consumption tax rate was raised to 10
percent in October 2019, but the increase in consumer prices was less than
1 percent, due to factors such as elimination of fees for preschool
education and daycare, lower resource prices, and lower communications
charges. From 2020 to 2021, consumer behavior was constrained by the
COVID-19 pandemic and domestic demand fell, resulting in a declining
trend in consumer prices, but in 2022 these prices rose due to higher
energy and food prices.
150
Figure 13.9
Price Trends (Percent change from previous year)
%
12
10
8
6 PPI (Producer Price Index)
4 ▼
2
0
-2 ▲
-4 CPI (Consumer Price Index)
-6
-8
-10
-12
2005 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Source: Statistics Bureau, MIC; Bank of Japan.
(1) Consumer Price Index (CPI)

The all items index of consumer prices (with base year 2020 = 100) was
102.3 in 2022, up 2.5 percent from the previous year.
Table 13.5
CPI for Major Categories of Goods and Services
(CY2020=100)
Item Weight 2005 2010 2015 2021 2022
All items ................................................. 10000 95.2 94.8 98.2 99.8 102.3
All items, less imputed rent ................... 8420 93.8 93.5 97.8 99.7 102.7
Food ................................................. 2626 85.9 88.7 94.6 100.0 104.5
Housing ............................................ 2149 101.1 100.5 99.6 100.6 101.3
Fuel, light and water charges ............. 693 82.2 87.1 101.2 101.3 116.3
Furniture and household utensils ....... 387 115.2 103.2 97.6 101.7 105.5
Clothing and footwear ....................... 353 92.4 92.3 96.4 100.4 102.0
Medical care ..................................... 477 97.1 96.0 95.8 99.6 99.3
Transportation and communication ... 1493 99.3 97.7 101.2 95.0 93.5
Education ......................................... 304 112.7 104.9 107.3 100.0 100.9
Culture and recreation ....................... 911 105.8 98.1 97.0 101.6 102.7
Miscellaneous ................................... 607 89.1 91.8 100.7 101.1 102.2
Goods .................................................. 5046 92.5 92.4 96.8 100.8 106.3
Services ................................................ 4954 98.0 97.3 99.6 98.7 98.2
151
According to the general index (all items, less imputed rent) in the regional
difference index of consumer prices, which compares the difference in
consumer price levels by prefecture, Tokyo had the highest score in 2021,
with a figure of 104.5 against the national average set at 100, followed by
Kanagawa, with 103.0. On the other hand, Miyazaki registered the lowest
score, with 96.2, followed by Gunma with 96.6.
Figure 13.10
Regional Difference Index of Consumer Prices
by Selected Prefectures (2021) (All Japan=100)
94
0 95 96 97 98 99 100 101 102 103 104 105 106
Tokyo
Kanagawa
Kyoto
Hokkaido
Ishikawa
Hiroshima
Okinawa
Aomori
Gunma
Miyazaki
(2) Corporate Goods and Services Producer Price Indices

The Corporate Goods Price Index measures price changes of goods traded
in the corporate sector. It is comprised of the Producer Price Index (price
index of domestically-produced and domestically-traded goods in the
corporate sector), the Export Price Index, and the Import Price Index.
In 2022, the Producer Price Index (CY2020 as the base year = 100) was
114.7, up 9.7 percent from the previous year.
In 2022, the Export Price Index increased to 110.6 on a contract currency
basis (up 4.5 percent from the previous year), and to 125.8 on a yen basis
(up 16.2 percent from the previous year). Furthermore, the Import Price
152
Index rose to 143.9 on a contract currency basis (up 21.2 percent from the
previous year) and to 169.0 on a yen basis (up 39.0 percent from the
previous year).
The Services Producer Price Index measures price movements of services
traded between companies. In 2022, the Services Producer Price Index
(CY2015 as the base year = 100) was 106.9, up 1.7 percent from the
previous year.
Table 13.6
Corporate Goods and Services Producer Price Indices
Item Weight 2018 2019 2020 2021 2022

Corporate Goods Price Index (CY2020=100)
Producer Price Index ............................. 1000.0 101.0 101.2 100.0 104.6 114.7
Manufacturing industry products ......... 892.3 100.7 100.8 100.0 104.7 113.6
Export Price Index (yen basis) ............... 1000.0 107.4 103.3 100.0 108.3 125.8
Import Price Index (yen basis) ............... 1000.0 117.8 111.5 100.0 121.6 169.0
Services Producer Price Index (CY2015=100)
All items ................................................ 1000.0 102.2 103.3 104.2 105.1 106.9
Information and communications ......... 228.3 100.9 101.3 102.5 102.7 102.5
Transportation and postal activities ...... 158.0 102.7 104.4 105.6 107.0 110.9
Real estate services .............................. 94.5 103.6 104.9 105.6 107.3 108.9
Leasing and rental ................................ 79.2 99.2 99.5 100.4 100.2 103.8
153
Chapter 14
Environment and Life
© KASAHARA Toshikazu
A village in Okuaizu, Fukushima Prefecture.

In 2023, the Statistics Bureau of the Ministry of Internal Affairs and Communications
will conduct the "Housing and Land Survey". This survey is designed to investigate
the actual status of dwellings, land ownership, and household dwelling conditions in
Japan, and to clarify the current situation and trends by nation and region. The survey
has been conducted every five years since 1948, and the 2023 survey will be the 16th.
CHAPTER 14 ENVIRONMENT AND LIFE
1. Environmental Issues
The list of environmental issues is wide-ranging, from waste management
to global warming. Japan is, while pursuing regional development at home,
taking the initiative in efforts to prevent global warming and conserve the
natural environment to help achieve sustainable growth of the entire world.
In fiscal 2021, Japan's total emission of greenhouse gases, which are a
major cause of global warming, amounted to 1.2 billion tons (calculated
after their conversion into carbon dioxide), representing an increase of 2.0
percent from the previous fiscal year. Carbon dioxide accounted for 90.9
percent of these greenhouse gases, with an emission volume of 1.1 billion
tons. A breakdown of carbon dioxide emissions by sector revealed that
emissions from the industrial sector accounted for 35.1 percent of the total,
followed in order by emissions from the the commercial industry sector
(office buildings, etc.), the transport sector, the residential sector, and the
energy transformation sector (electric power plants, etc.).
Table 14.1
Breakdown of Carbon Dioxide Emissions 1) 2)
(Million tons)
Category FY1990 FY2005 FY2010 FY2015 FY2020 FY2021
Total ........................................... 1,163 1,293 1,217 1,225 1,042 1,064
Industrial sector ....................... 503 467 431 430 354 373
Transport sector ...................... 208 244 229 217 183 185
Commercial industry sector ...... 131 220 200 218 184 190
Residential sector ..................... 129 171 178 187 167 156
Energy transformation sector ... 96 98 99 93 79 84
Industrial processes
and product use ..................... 65 56 47 47 42 43
Waste (incineration, etc.) ......... 24 32 29 30 30 30
Others ..................................... 7 5 4 3 3 3
1) Volume of carbon dioxide after reallocation to the end-use sector. 2) Due to the revision of
the Electricity Business Act (liberalization of electricity retail sales), the emission intensity of
electricity used in each sector has changed since FY2016.
Source: Ministry of the Environment.
155
Figure 14.1
Sources of Carbon Dioxide Emissions 1) (FY2021)
Others
Energy transformation sector
7.1 Industrial sector

7.9
35.1 %
Residential sector 1.06
14.7 billion tons of
carbon
dioxide
17.4
17.9
Transport sector
Commercial industry sector
1) Volume of carbon dioxide after reallocation to the end-use sector.

The state of waste management in Japan had remained serious due to the
shrinking remaining capacity of final disposal sites and increased illegal
dumping. This led to the Basic Act on Establishing a Sound
Material-Cycle Society (brought into force in January 2001), which
defines basic principles for the creation of a sound material-cycle society.
This Act has established a legal framework to address issues such as waste
disposal and recycling of automobile and electrical appliance. Furthermore,
in Japan, the "3Rs" (reduce, reuse and recycle) in waste management
including R&D on waste recycling technology and appropriate
management of materials of hazards have been promoted, but recently,
socio-economic systems have been developed to especially implement the
"2Rs" (reduce and reuse) from among the "3Rs".
156
Of various types of waste generated as a result of business activities, 20 of

them, including sludge, waste oil, soot and dust, and imported waste, are
designated as "industrial waste". The fiscal 2020 nationwide industrial
waste generation totaled 374 million tons. Sludge, animal excreta, and
debris, which account for approximately 80 percent of the total industrial
waste, are now increasingly recycled into construction materials, fertilizers,
and other materials. Thanks to this development, the volume of final
disposal (to be put into landfills) fell from 89 million tons in fiscal 1990 to
9 million tons in fiscal 2020.
Meanwhile, a total of 42 million tons of "nonindustrial waste" (household
waste and also shop, office, and restaurant waste) was generated in fiscal
2020. This translates to 901 grams per person per day. The total volume of
processed nonindustrial waste was 40 million tons in fiscal 2020. The total
volume of recycled waste was 8 million tons, with the recycling rate at
20.0 percent.
Table 14.2
Waste Generation and Disposal
(Thousand tons)
Item FY1990 FY2000 FY2005 FY2010 FY2020
Industrial waste
Total volume of waste generation ............ 394,736 406,037 421,677 385,988 373,818
Recycling .............................................. 150,568 184,237 218,888 204,733 199,022
Treatment for waste reduction .............. 154,443 176,933 178,560 167,000 165,708
Final disposal ........................................ 89,725 44,868 24,229 14,255 9,089
Nonindustrial waste 1)
Total volume of waste generation ............ 50,257 54,834 52,720 45,359 41,669
Municipally scheduled and collected ..... 42,495 46,695 44,633 38,827 36,160
Directly brought to
waste treatment facilities ................... 6,776 5,373 5,090 3,803 3,866
Recyclable waste
collected by community .................... 986 2,765 2,996 2,729 1,643
Waste generated
daily per person (in grams) .................. 1,115 1,185 1,131 976 901
Total volume of processed waste ............. 49,282 52,090 49,754 42,791 40,085
Direct incineration ................................ 36,192 40,304 38,486 33,799 31,872
Intermediate treatment for recycling, etc. ... 6,479 7,283 6,161 5,923
3,300
Direct recycling .................................... 2,224 2,541 2,170 1,923
Direct final disposal .............................. 9,790 3,084 1,444 662 367
1) Due to the Great East Japan Earthquake, figures for FY2010 exclude those for
Minamisanriku Town, Miyagi Prefecture. Figures for FY2020 exclude disaster waste.
157
Figure 14.2
Recycling of Nonindustrial Waste 1)
Million tons %
15 25
Volume of collection by community
(left scale)
Volume of recycling by municipality
12 Recycling rate (%) (right scale) 20
9 15
6 10
3 5
0 0
FY1990 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Total volume of recycled waste

Recycling rate ＝ × 100
(%) Total volume of Volume of collection
+ by community
processed waste
Total volume of ＝ Volume of recycling + Volume of collection

recycled waste by municipality by community
1) Due to the Great East Japan Earthquake, figures for FY2010 exclude those for Minamisanriku
Town, Miyagi Prefecture. Figures after FY2011 exclude disaster waste.
2. Housing
The total number of dwellings (the number of individual units in the case
of apartment buildings) in Japan was 62 million in 2018, up by 2 million,
2.9 percent from 2013. The number of households was 54 million,
representing the excess in number of dwellings over households by 8
million.
158
In 2018, the number of occupied dwellings (where people usually live)

amounted to 54 million, accounting for 85.9 percent of the total number of
dwellings. Of these, the number of dwellings used exclusively for living
totaled 53 million, accounting for 98.2 percent of the occupied dwellings.
Meanwhile, the number of vacant dwellings increased by 0.3 million, 3.6
percent from 2013, to 8 million. That vacancy rate represented 13.6
percent of the total number of dwellings, the highest-ever ratio.
Figure 14.3
Trends in Dwellings, Vacant Dwellings, and Vacancy Rate
Millions %
70 15
Total number of dwellings 13.5 13.6
(left scale) 13.1
60 Number of vacant dwellings 12.2
Vacancy rate (right scale) 11.5
50 9.8
9.4 10
8.6
40 7.6
30
5
20 35.45 38.61 42.01 45.88 50.25 53.89 57.59 60.63 62.41
10
3.30 3.94 4.48
2.68
5.76 6.59 7.57 8.20 8.49
0 0
1978 1983 1988 1993 1998 2003 2008 2013 2018
A breakdown of occupied dwellings by category of ownership showed that

owned houses totaled 33 million, accounting for 61.2 percent of the total,
which represented a decrease of 0.5 percentage points from the figure of
61.7 percent in 2013. Rented houses, on the other hand, numbered 19
million, accounting for 35.6 percent of the total.
159
Table 14.3
Housing Conditions
(Thousands)
Ownership Dwellings
Total
Total Occupied used Floor space
Year number of 2)
households 1) dwellings Owned Rented exclusively per dwelling
dwellings
for living (m2) 2)
1988 37,812 42,007 37,413 22,948 14,015 34,701 85.0
1993 41,159 45,879 40,773 24,376 15,691 38,457 88.4
1998 44,360 50,246 43,922 26,468 16,730 41,744 89.6
2003 47,255 53,891 46,863 28,666 17,166 45,258 92.5
2008 49,973 57,586 49,598 30,316 17,770 48,281 92.4
2013 52,453 60,629 52,102 32,166 18,519 50,982 93.0
2018 54,001 62,407 53,616 32,802 19,065 52,642 92.1
1) Including dwellings without occupying households.
2) Including ownership of dwelling "Not reported".
Table 14.4
Occupied Dwellings by Type of Building
(Thousands)
Detached Tenement
Year Total Apartments Others
houses houses
1988 37,413 23,311 2,490 11,409 203
1993 40,773 24,141 2,163 14,267 202
1998 43,922 25,269 1,828 16,601 224
2003 46,863 26,491 1,483 18,733 156
2008 49,598 27,450 1,330 20,684 134
2013 52,102 28,599 1,289 22,085 130
2018 53,616 28,759 1,369 23,353 136
Occupied dwellings by building type showed that 29 million or 53.6

percent were detached houses, and 23 million or 43.6 percent were
apartments. The proportion of apartments has consistently increased in
recent years.
In terms of construction materials, 27 million or 92.6 percent of the
detached houses were wood-frame houses (including fire-resistant ones).
On the other hand, 17 million or 72.3 percent of the apartments were
steel-framed concrete structures.
160
The number of principal households with household members aged 65

years old and over was 22.53 million. Of these households, there were 9.56
million households living in houses that are handrail-equipped at 2 or more
locations or have a step-free interior (constant barrier-free houses),
accounting for 42.4 percent of households with elderly members. This
marked an increase of 1.2 percentage points compared to 2013.
Table 14.5
Ratio of Barrier-Free Houses with Elderly Members
Principal households 1) with household members aged 65 years old and over
Number (1,000) Ratio (%)
Year
Constant Constant
Total High barrier- Total High barrier-
barrier-free barrier-free
2) free houses 3) 2) free houses 3)
houses houses
2013 20,844 8,584 1,775 100.0 41.2 8.5
2018 22,534 9,556 1,988 100.0 42.4 8.8
1) When a single household lives in 1 house, it is called a "principal household", and if 2 or
more households live in 1 house, then the main household from among the multiple
households is regarded as the "principal household". 2) Houses that are handrail-equipped
at 2 or more locations, or have step-free interiors, as equipment for the elderly etc.
3) Houses that are handrail-equipped at 2 or more locations, and have step-free interiors and
wheelchair-accessible hallways, as equipment for the elderly etc.
3. Traffic Accidents
In 1970, the annual number of fatalities from traffic accidents hit a record
high of 16,765, leading to the enactment of the Basic Act on Traffic Safety
Measures in the same year. Based on this, the government has promoted
traffic safety measures in a comprehensive and systematic manner. As a
result, the number of traffic accident fatalities was 2,636 in 2021, which is
the lowest number since 1948 when the current traffic accident statistics
were adopted, and this represented approximately one-sixth of the number
in 1970.
In 2021, the number of traffic accident fatalities per 100,000 population
was 2.1 persons, while that per 10,000 motor vehicles owned was 0.3
persons.
161
Table 14.6
Traffic Accidents and Casualties
Traffic
Year Injuries Fatalities 1) per 10,000 per 100,000
accidents
motor vehicles owned population
1970 718,080 981,096 16,765 9.0 16.2
1980 476,677 598,719 8,760 2.2 7.5
1990 643,097 790,295 11,227 1.9 9.1
2000 931,950 1,155,707 9,073 1.2 7.1
2010 725,924 896,297 4,948 0.6 3.9
2020 309,178 369,476 2,839 0.3 2.3
2021 305,196 362,131 2,636 0.3 2.1
1) Death within 24 hours of the traffic accident.
Source: Cabinet Office.
4. Crime
The police organization consists of the National Public Safety Commission
and the National Police Agency, both of which are state organizations, as
well as the Prefectural Public Safety Commission and prefectural police,
both of which are organizations under the authority of individual
prefectures. As of April 1, 2022, the prefectural police operated police
headquarters, police academies, 1,149 police stations, 6,250 police boxes
and 6,105 police substations in 47 prefectures.
Community police officers at their respective police boxes/substations are
engaged in standing guard over their communities, patrolling, and dealing
with criminal cases and accidents to prevent crime and catch criminals.
In 2022, the reported number of penal code offenses was 601,331, an
increase of 33,227, or 5.8 percent compared to the previous year. The
proportion of thefts was the highest, accounting for 67.8 percent, or
407,911 cases (up 6.8 percent from the previous year).
The number of persons arrested for penal code offenses was 169,409 in
2022, a decrease of 5,632, or 3.2 percent compared to the previous year,
marking a decline for the 18th consecutive year.
The ratio of arrests to reported number of offenses marked 19.8 percent in
2001, the lowest since World War II. From 2002 to 2007, this ratio
increased, and levelled off afterwards. From 2014 it exhibited a rising
162
trend, but in 2022, it was 41.6 percent, a decrease of 5.0 percentage

points from the previous year.
Table 14.7
Trends in Crime (Penal code offenses)
Crime rate
Reported Resultant Persons Arrest rate 1)
Year per 100,000
offenses arrests arrested (%)
population
1980 1,357,461 811,189 392,113 59.8 1,159.6
1985 1,607,697 1,032,879 432,250 64.2 1,328.1
1990 1,636,628 692,593 293,264 42.3 1,324.0
1995 1,782,944 753,174 293,252 42.2 1,419.5
2000 2,443,470 576,771 309,649 23.6 1,925.5
2005 2,269,293 649,503 386,955 28.6 1,775.7
2010 1,604,019 497,356 322,620 31.0 1,252.6
2015 1,098,969 357,484 239,355 32.5 864.7
2020 614,231 279,185 182,582 45.5 486.6
2021 568,104 264,485 175,041 46.6 452.7
2022 601,331 250,350 169,409 41.6 481.3
1) The ratio of arrests to reported number of offenses.
Source: National Police Agency; Ministry of Justice.
Various kinds of computers and computer networks are currently playing

an essential role as a social foundation. In line with this, crimes utilizing
computer networks are becoming increasingly diversified. The number of
arrests for cybercrime (violation of the Unauthorized Computer Access Act,
offenses involving computers or electromagnetic records, offenses related
to creation of unauthorized commands for electromagnetic records, etc.) in
2022 was 12,369, up 1.3 percent from the previous year. This represented
about a fourteenfold increase from the 913 cases registered in 2000.
163
Chapter 15
Social Security, Health Care, and Public Hygiene
© FUNAYAMA Toshihiro
A granddaughter participates in the Rice-Planting Festival at a shrine to pray for a

good harvest. Her grandmother helps her prepare. Life expectancy at birth was 87.6
years for women and 81.5 years for men in 2021.
CHAPTER 15 SOCIAL SECURITY, HEALTH CARE, AND PUBLIC HYGIENE
1. Social Security
In Japan, the birth rate has been falling, while the number of elderly people
has been growing. Meanwhile, its social security system is required to
address various changes in the socioeconomic environment.
The long-term care insurance system, established in April 2000 to ensure
that society as a whole supports care for the elderly, marked its 23rd year
in 2022. When the system was first established, there were 2.18 million
people certified as needing care or needing support. This number grew by
approximately 3.2-fold, to 6.91 million people as of April 2022, and the
long-term care insurance system has become anchored in society. Today,
there are approaches aimed at enhancing services for promoting "the
Community-based Integrated Care System" (system where medical care,
nursing care, preventive care, and livelihood support are provided
integrally in regions where one is used to living), as well as realizing a
local, inclusive society.
The number of monthly users of long-term care insurance services totaled,
on average, 5.75 million per month in fiscal 2020, and increased by
approximately 3.1-fold over 20 years in comparison to the approximately
1.84 million users in fiscal 2000, when the system was initiated. In
addition, the amount of nursing care costs in fiscal 2020 (including
allowances for high-cost long-term care service, for high-cost medical care
and long-term care service, and for long-term care service to a person
admitted to a specified facility), totaled 11.5 trillion yen.
165
Table 15.1
Trends in Social Security Benefit Expenditures by Functional Category 1) 2) 3) 4) 5)
(Billion yen)
Total ............................................................ 78,408 88,854 10,537 116,814 123,924 132,221
Old age .................................................... 36,688 # 44,102 51,335 # 55,339 57,833 58,921
Survivors ................................................ 5,958 # 6,459 6,795 # 6,670 6,450 6,410
Invalidity benefits ................................... 2,151 # 2,397 3,398 # 4,283 4,900 5,225
Employment injury ................................. 1,058 984 943 # 919 930 905
Sickness and health ................................ 25,578 # 27,491 32,214 # 36,891 39,083 41,144
Family benefits ....................................... 2,365 # 3,232 5,009 # 7,142 9,191 10,267
Unemployment ....................................... 2,647 1,453 2,250 1,442 1,463 5,024
Housing .................................................. 201 # 429 513 617 603 605
Other social policy areas ......................... 1,761 # 2,307 2,910 # 3,510 3,470 3,720
1) This table is calculated in accordance with the standards of the ILO's "The Cost of Social Security
19th International Inquiry."
2) Because of retrospective tabulation up to FY2005 of expenditure items data that were added in
FY2011, a gap has occurred with FY2004 data.
3) Since FY2011, Employees' Accident Compensation has been added for special national public
servants in the House of Representatives, House of Councillors, National Diet Library, courts,
Ministry of Foreign Affairs, and Ministry of Defense.
4) In addition to expenses for early childhood care services, expenses for early childhood education are
included in total social security benefit expenditures from FY2015.
5) There is a gap between FY2014 and FY2015 because of the change in the scope of the services
operated independently by local public entities that were targeted for tabulation in FY2015.
Source: National Institute of Population and Social Security Research.
In fiscal 2020, social security benefit expenditures totaled 132.2 trillion

yen (up 6.7 percent from the previous fiscal year), a figure which
amounted to 1.05 million yen per person. The ratio of Japan's social
security benefit expenditures to GDP registered 24.7 percent. Benefits for
the aged accounted for 62.9 percent of total social security benefit
expenditures.
166
Figure 15.1
13.1 1) 2) 3) 4)
Trends in Social Security
Security Benefit Expenditures by Sector
Expenditures
Trillion yen %
140 30
Medical care Ratio of social security benefit
(left scale) expenditures to GDP (right scale)
120
Welfare and
25
Pensions
(left scale) others (left scale)
100
20
80
15
60
10
40
5
20
0 0
FY2000 02 04 06 08 10 12 14 16 18 20
1) Because of retrospective tabulation up to FY2005 of expenditure items data that were added in
FY2011, a gap has occurred with FY2004 data.
2) Since FY2011, Employees' Accident Compensation has been added for special national public
servants in the House of Representatives, House of Councillors, National Diet Library, courts,
Ministry of Foreign Affairs, and Ministry of Defense.
3) In addition to expenses for early childhood care services, expenses for early childhood
education are included in total social security benefit expenditures from FY2015.
4) There is a gap between FY2014 and FY2015 because of the change in the scope of the
services operated independently by local public entities that were targeted for tabulation in
FY2015.
Source: National Institute of Population and Social Security Research.
In fiscal 2020, pensions accounted for 42.1 percent of total social security
benefit expenditures, while medical care accounted for 32.3 percent, and
social welfare and others for 25.6 percent. Social security benefit
expenditures are forecasted to continue growing.
The government has established "Social Security for All Generations", in
which all generations support each other fairly, and is examining
sustainable reforms. Total funding for social security in fiscal 2020 was
184.8 trillion yen, an increase of 39.6 percent compared to the previous
fiscal year. This can be broken down into 73.5 trillion yen in social
insurance contributions (39.8 percent of the total), 59.0 trillion yen in
public contributions (31.9 percent of the total), and 52.3 trillion yen in
other revenue (28.3 percent of the total). The increase in funding was
167
due to increased asset revenue in the other revenue category, and increased
state contributions in the public contributions category due primarily to
expenditures relating to COVID-19 countermeasures.
The national contribution ratio (the combined ratios of taxes and social
security costs to national income) was 48.1 percent in fiscal 2021 (taxation
burden: 28.9 percent; social security premiums: 19.3 percent), up 0.2
percentage points from 47.9 percent in fiscal 2020 (taxation burden: 28.2
percent; social security premiums: 19.8 percent). The national contribution
ratio in 2020 was 32.3 percent in the U.S.A., 46.0 percent in the U.K., and
69.9 percent in France. While the ratio in Japan was higher than that of the
U.S.A., it is trending lower than European countries.
Figure 15.2
National Contribution Ratio by Country
%
90
80 National contribution Ratio of social security

ratio premiums burden
69.9
70
Ratio of taxation burden
60 54.5
54.0 24.9
50 48.1 46.0
5.1
40 11.7 23.7
19.3
32.3
30
8.5
49.5
45.0
20
34.3 30.3
28.9
10 23.8
0
Japan U.S.A. U.K. Germany Sweden France
(FY2021) (2020) (2020) (2020) (2020) (2020)
2. Health Care and Public Hygiene

Japan has a universal health insurance regime to ensure that anyone can
receive necessary medical treatment. Under this regime, every citizen
enters a publicly regulated medical insurance system, such as employees'
health insurance, national health insurance or the latter-stage elderly's
medical insurance.
168
Under the universal health insurance regime, Japan's life expectancy at

birth and healthcare standards are at the highest level in the world.
However, reform will be needed with an eye toward future Japanese
society, in 2025 when the baby boom generation will all be 75 years old or
older, and 2040 when second-generation baby boomers reach old age.
Life expectancy at birth was 87.6 years for women and 81.5 years for men
in 2021. Japan's life expectancy at birth remains at a high level in the
world. Even with regard to healthy life expectancy, which is the "average
period without being restricted in daily life", Japan was among the world's
highest as of 2019, with 75.4 years for women and 72.7 years for men.
Japan's infant mortality rate was 1.7 per 1,000 births in 2021.
Figure 15.3
Figure 15.3 Cause
Death by Leading
Death Rates by Major Cause
350
300 Malignant neoplasms

▼
250
200 Heart diseases 1)

Cerebrovascular diseases ▼
150
Senility
100
Accidents
50 Pneumonia
▼ Suicide
0
2001 03 05 07 09 11 13 15 17 19 21
1) Excluding hypertensive diseases.
The death rate was 1,172.7 per 100,000 population in 2021. The leading
cause of death was malignant neoplasms (310.7 per 100,000 population),
followed by lifestyle diseases such as heart diseases (174.9; excluding
hypertensive diseases), in which people's daily diet and behavior are
significant factors, and senility (123.8). Malignant neoplasms became the
leading cause of death in 1981. The death rate by malignant neoplasms has
continued to increase since, reaching 26.5 percent of all deaths in 2021.
169
The number of deaths caused by suicide in Japan hovered at around 30,000

annually in 1998 and onwards. In recent years, the number has remained
steady at around 20,000. The number of suicides in 2021 was 20,291. In
2021, suicide was the leading cause of deaths for people aged between 10
and 39.
In the past, human beings have faced the threat of various epidemic
diseases, including new strains of influenza. In 2014, cases of infection
from Dengue fever in Japan were confirmed for the first time in
approximately 70 years. In 2018, the number of patients with rubella
increased. In 2020, the outbreak of COVID-19 developed into a pandemic,
resulting in increasing numbers of infections and verified deaths. In Japan,
measures have been taken to counter infectious diseases, such as
vaccination to prevent the outbreak and spread of infectious diseases, but
in November 2021, it was decided, as preparation against infectious
diseases, to further strengthen vaccination, testing, prevention with
therapeutic drugs, and the process from discovery to early treatment, and
to strengthen the medical system, promote vaccination, and secure
therapeutic drugs.
In terms of healthcare provision, Japan had 336,882 physicians engaged in
medical care, or 267.0 physicians per 100,000 population, in 2020. While
the number of physicians providing healthcare is increasing nationwide,
their uneven distribution has become a problem due to the lack of
physicians specializing in certain areas of medicine and the lack of
physicians operating in regional parts of the country.
Table 15.2
Medical Personnel at Work
Personnel 2012 2014 2016 2018 2020
Number
Physicians ....................................... 300,664 308,651 317,162 324,737 336,822
Dentists ........................................... 101,110 102,534 103,127 103,418 105,798
Pharmacists ..................................... 262,520 271,364 284,069 294,430 302,504
Nurses and Assistant nurses ........... 1,373,521 1,426,932 1,472,508 1,523,085 1,565,500
Rates per 100,000 population
Physicians ....................................... 235.6 242.6 249.7 256.2 267.0
Dentists ........................................... 79.2 80.6 81.2 81.6 83.9
Pharmacists ..................................... 205.7 213.3 223.6 232.3 239.8
Nurses and Assistant nurses ........... 1,076.5 1,121.5 1,159.1 1,201.7 1,241.0
Source: Statistics Bureau, MIC; Ministry of Health, Labour and Welfare.
170
As of October 1, 2021, the number of hospitals in Japan (excluding

medical clinics and dental clinics) totaled 8,205. The number of hospital
beds amounted to 1,500,057 (1,195.2 per 100,000 population).
Table 15.3
Medical Care Institutions and Beds
Type of Institution 2011 2014 2017 2020 2021
Institutions
Total ............................................ 176,308 177,546 178,492 178,724 180,396
Hospitals ................................ 8,605 8,493 8,412 8,238 8,205
Medical clinics ....................... 99,547 100,461 101,471 102,612 104,292
Dental clinics ......................... 68,156 68,592 68,609 67,874 67,899
Total ......................................... 138.0 139.7 140.9 141.7 143.7
Hospitals ................................ 6.7 6.7 6.6 6.5 6.5
Medical clinics ....................... 77.9 79.1 80.1 81.3 83.1
Dental clinics ......................... 53.3 54.0 54.1 53.8 54.1
Beds
Total ......................................... 1,712,539 1,680,712 1,653,303 1,593,633 1,583,783
Hospitals ................................ 1,583,073 1,568,261 1,554,879 1,507,526 1,500,057
Medical clinics ....................... 129,366 112,364 98,355 86,046 83,668
Dental clinics ......................... 100 87 69 61 58
Total ......................................... 1,340.0 1,322.5 1,304.8 1,263.3 1,262.0
Hospitals ................................ 1,238.7 1,234.0 1,227.2 1,195.1 1,195.2
Medical clinics ....................... 101.2 88.4 77.6 68.2 66.7
Dental clinics ......................... 0.1 0.1 0.1 0.0 0.0
In fiscal 2020, national medical care expenditures totaled 43.0 trillion yen
or 8.02 percent of Japan's GDP. The cost of medical care per person
averaged 340,600 yen in fiscal 2020.
To ensure that society as a whole supports medical care for the elderly,
Japan has established a medical insurance system which divides the elderly
into two categories: 65 to 74 years old (early-stage elderly) and 75 years
old and older (latter-stage elderly). Medical costs for treating the
latter-stage elderly in fiscal 2019 were 17.1 trillion yen, or 38.4 percent of
national medical care expenditure, and accounted for 3.06 percent of GDP.
171
The per-capita cost of medical care for the latter-stage elderly averaged
954,369 yen for the year. The percentage of national medical care
expenditures accounted for by medical care costs for the late-stage elderly
decreased when the age of persons eligible to receive later-stage elderly
medical care was raised in a phased manner over 5 years from 70 years to
75 years old in October 2002, but in recent years, there has been a slight
uptrend.
Figure 15.4
Trends in Medical Care Expenditures
Trillion yen %
50 12
Ratio of national medical care
expenditures to GDP
(right scale) 10
40
Medical care
for the latter-stage elderly
(left scale) 8
30
20
4
10
2
0 0
FY1992 95 98 01 04 07 10 13 16 19
172
Chapter 16
Education and Culture
© KOYAMA Chieko
According to the "2021 Survey on Time Use and Leisure Activities", the total number
of people aged 10 years old and over who participated in some kind of sports was
74.79 million, for a participation rate of 66.5 percent. The total number of
participants in baseball (including playing catch) was 7.05 million, for a participation
rate of 6.3 percent.
CHAPTER 16 EDUCATION AND CULTURE
1. School-Based Education
Japan's primary and secondary education is based on a 6-3-3 system: 6
years in elementary school, 3 years in lower secondary school, and 3 years
in upper secondary school. The period of compulsory schooling is the 9
years at elementary and lower secondary schools. Higher education
institutions are universities, junior colleges, and colleges of technology.
Other education establishments include kindergartens and integrated
centers for early childhood education and care, which provide pre-school
education, and schools for special needs education. There are also
specialized training colleges and miscellaneous schools for a wide range of
vocational and other practical skills learning. In order to promote diversity
of the school education system, unified lower-upper secondary schooling
began at some schools in 1999. Furthermore, in 2016, compulsory
education schools, where compulsory education for elementary schools to
lower secondary schools is carried out consistently, were established. On
an additional note, the school year in Japan starts in April and ends in
March of the following year.
Table 16.1
Educational Institutions in Japan (as of May 1, 2022)
Schools Full-time Students (1,000)
Type of institution teachers
Total National Public Private (1,000) Males Females
Kindergartens ............................ 9,111 49 2,910 6,152 88 466 457
Integrated centers for early
childhood education and care .... 6,657 - 913 5,744 137 420 401
Elementary schools .................... 19,161 67 18,851 243 423 3,145 3,006
Lower secondary schools .......... 10,012 68 9,164 780 247 1,639 1,566
Compulsory education schools .. 178 5 172 1 6 35 33
Upper secondary schools ........... 4,824 15 3,489 1,320 225 1,499 1,458
Secondary schools ..................... 57 4 35 18 3 16 17
Schools for special needs
education 1) .............................. 1,171 45 1,111 15 87 98 50
Colleges of technology .............. 57 51 3 3 4 44 12
Junior colleges ........................… 309 - 14 295 7 12 83
Universities ............................... 807 86 101 620 191 1,627 1,304
Graduate schools .................... 657 86 89 482 106 176 86
Specialized training colleges ...... 3,051 8 183 2,860 40 277 359
Miscellaneous schools ............... 1,046 - 5 1,041 8 55 47
1) Schools for mentally and/or physically challenged children, inclusive of kindergarten to
upper secondary school levels.
Source: Ministry of Education, Culture, Sports, Science and Technology.
174
Figure 16.1
Specialized Training
Japanese School System College Upper
Secondary
School Normal Graduate Professional Programs
Year Age Schools Graduate Schools Specialized Training
Professional Universities College General
24 Programs
18 Correspondence Professional
23 Programs Junior Colleges Specialized Training Miscellaneous
College Specialized
17 Correspondence Programs Schools
22 Programs
16
21 Colleges of
15 Technology
20 Universities
14 Junior
19 Colleges
13
18
12
Part-time/
17 Upper
Upper Corre-
11 Upper Secondary Schools Sec.
Div. spondence
16 Dept.
10 Programs
15
9
14 Lower Upper Lower
8 Div. Lower Secondary Schools Div. Sec.
13 Dept.
7
12 Compulsory
6 Education
11 Secondary Part-time/ Schools
5 Schools Correspondence
10 Programs
4 Element.
9 Dept.
Elementary Schools Lower
3
8 Div.
2
7
1
6
Kinder.
5 Integrated Centers for Dept.
Compulsory Early Childhood Kindergartens
4 Education Education
and Care
3
Schools for Special
Needs Education
Of the March 2022 upper secondary school and upper division of

secondary school graduates, 59.6 percent went straight on to enter a
university, junior college, etc. The ratio of graduates of upper secondary
school, etc. who entered a university or junior college in 2022 was 60.4
percent (60.6 percent of male and 60.1 percent of female graduates),
including graduates from previous years.
175
Table 16.2
Number of University Students (as of May 1)
2010 2015 2020 2021 2022
Total .............................. 2,887,414 2,860,210 2,915,605 2,917,998 2,930,780
Undergraduate ............... 2,559,191 2,556,062 2,623,572 2,625,688 2,632,216
Graduate schools ............ 271,454 249,474 254,529 257,128 261,782
Others 1) ......................... 56,769 54,674 37,504 35,182 36,782
Females ...................... 1,185,580 1,231,868 1,294,320 1,297,056 1,303,975
Undergraduate ............ 1,077,782 1,127,372 1,193,465 1,196,555 1,200,992
Graduate schools ......... 82,133 77,831 82,982 84,017 85,580
Others 1) ...................... 25,665 26,665 17,873 16,484 17,403
National ......................... 625,048 610,802 598,881 597,450 596,195
Public ............................. 142,523 148,766 158,579 160,438 163,103
Private ........................... 2,119,843 2,100,642 2,158,145 2,160,110 2,171,482
1) Including advanced students, short-term students, non-degree students, auditing students
and research students.
Figure 16.2
University Students by Field of Study (as of May 1, 2022)
Social
science
31.8%
Agriculture
3.0 Others
Others
Science 13.6
19.3
3.0 Arts Engineering
2.9 41.8%
Education
and teacher Undergraduate Agriculture Graduate 1)
training 2,632,216 5.5 166,148
7.1 students students
Health Humanities
13.3 5.8
Engineering Health
14.5 7.3
Science
8.3
Social
Humanities science
13.6 9.2
1) Master's course.
As of May 1, 2021, a total of 128,805 foreign students were enrolled in

Japanese junior colleges, universities, and graduate schools. Of the total
foreign students, 93.8 percent were from Asia, including 76,734 from
China, 11,833 from the Republic of Korea and 11,322 from Vietnam.
176
Fiscal 2019 public expenditure on education in Japan was 24 trillion yen,

which is equivalent to 14.2 percent of the net expenditure of national and
local governments.
Figure 16.3
Public Expenditures on Education
Trillion yen %
30 Percentage of public expenditure on education to net national 16
and local government expenditure (right scale)
28
Educational administration
(left scale) 14
26
24 (left scale)
12
22
20
10
Social
18 education
16
School 8
education
14
～～
～～
120 06
FY2015 16 17 18 19
Fiscal 2021 school expenditure by households with children attending

public school averaged 65,974 yen per elementary school pupil, 132,349
yen per lower-secondary school student and 309,261 yen per
upper-secondary school student.
177
2. Lifelong Learning
As society approaches a major turning point in heading towards a
"100-year-life", there is increasing importance in realizing a "Lifelong
Learning Society" in which people are able to select learning opportunities
whenever they want during their life, and their learning outcomes are
evaluated appropriately.
Today, in order to develop a society where people can engage in learning
any time they like throughout their lives, efforts are being made to provide
learning opportunities such as school education, social education, cultural
activities, sports activities, recreational activities, volunteer activities, and
corporate in-house education. In providing places and opportunities for
such lifelong learning, educational institutions and social education
facilities (citizens' public halls, libraries, museums, and sports facilities,
etc.) play a vital role.
Table 16.3
Social Education Facilities and Users
Number 1) Users (1,000) 2)
Facilities
2018 2021 2017 2020
Citizens' public halls 3) .................... 14,281 13,798 183,513 110,203
Libraries 4) ..................................... 3,360 3,394 177,899 142,490
Museums ....................................... 1,286 1,305 142,456 65,047
General museums ....................... 154 157 9,349 3,736
Science museums ....................... 104 100 16,830 6,087
Historical museums .................... 470 476 28,611 9,572
Art museums .............................. 453 457 39,811 17,038
Outdoor museums ...................... 16 18 2,157 560
Zoological gardens ..................... 34 36 19,396 11,191
Botanical gardens ....................... 11 11 1,117 1,162
Zoological and botanical gardens ..... 6 7 4,538 3,147
Aquariums .................................. 38 43 20,646 12,553
Facilities similar to museums ......... 4,452 4,466 160,613 74,657
Centers for children and youths ..... 891 840 19,729 7,553
Women's education centers ............ 358 358 11,310 4,302
Public sports facilities .................... 46,981 45,658 526,725 280,631
Private sports facilities ................... 16,397 #* 29,821 107,939 #* 179,328
Theaters, concert halls, etc. ........... 1,827 1,832 … …
Lifelong learning centers ............... 478 496 27,290 11,698
1) As of October 1. 2) Total of fiscal year. 3) Including similar facilities.
4) Including the same type of facilities.
178
3. Leisure Activities
The results of the "2021 Survey on Time Use and Leisure Activities"
conducted on people living in this country, aged 10 years old and over,
show that the amount of free time each person has spent was 6 hours and
16 minutes, which was the time remaining after activities that were
physiologically necessary (sleeping, eating, etc.) and societally essential
(work, housework, etc.).
Table 16.4
Major Leisure Activities by Sex (Aged 10 years old and over) (2021)
Leisure Activities Total Males Females
Free time per day (hours. minutes) .............................. 6.16 6.34 6.00
1)
Participation rate (%)
Hobbies and amusements .......................................... 86.3 86.8 85.8
2) 3)
Sports ................................................................. 66.5 69.9 63.3
Travel and excursion ................................................. 49.5 48.9 50.1
2) 4)
Learning, self-education, and training .................. 39.6 39.8 39.5
Volunteer activities ................................................... 17.8 18.2 17.5
1) Participants in the activity / Population × 100. 2) Including club activities at
school. 3) Excluding sports performed by professional players as their job and by
students in PE class. 4) Excluding worker training at the workplace, and study and
research activities performed by children, pupils or students as schoolwork, such as
study in class, preparation for class and review of lessons.
The participation rate for "hobbies and amusements" was 86.3 percent
(percentage of people (aged 10 years old and over) who engaged in the
activity within the past 12 months), and by sex, the participation rate for
males was 86.8 percent and that for females was 85.8 percent. In addition,
for participation rates by type of activity, "listening to music by CDs,
smartphone, etc." was the highest at 53.5 percent, followed by "watching
movies other than movie theater" at 52.7 percent, "playing games on a
smartphone, home video game consoles, etc." at 42.9 percent, and so on.
179
The participation rate for "sports" was 66.5 percent, and by sex, the
participation rate for males was 69.9 percent and that for females was 63.3
percent. In addition, for participation rates by type of sport, "walking or
light physical exercise" was the highest at 44.3 percent, followed by
"training with gym equipment" at 12.9 percent, and so on.
Figure 16.4
Participation Rates for Major "Sports" by Age Group
% %
60 60
Walking or Training with gym
light physical exercise equipment
40 2021 40
2016 2016
20 20
2021
0 0
10 15 20 25 30 35 40 45 50 55 60 65 70 75 10 15 20 25 30 35 40 45 50 55 60 65 70 75
| | | | | | | | | | | | | + | | | | | | | | | | | | | +
14 19 24 29 34 39 44 49 54 59 64 69 74 14 19 24 29 34 39 44 49 54 59 64 69 74
4. Publishing and Mass Media

A total of 69,052 new book titles were released in 2021. The number of
magazine titles published was 2,536 (including 2,454 monthlies and 82
weeklies). In recent years, a wider range of electronic book content has
become available, leading to continuing growth of the electronic books
market.
180
Table 16.5
Number of New Book Titles Published
Subject 2017 2018 2019 2020 2021
Total ........................................ 73,057 71,661 71,903 68,608 69,052
General works ....................... 858 767 804 805 760
Philosophy ............................ 3,932 3,955 3,743 3,507 3,402
History and geology .............. 3,404 3,530 3,890 3,927 3,902
Social sciences ...................... 15,422 15,220 15,482 14,068 14,159
Natural sciences .................... 5,757 5,325 5,066 5,117 5,043
Engineering and technology ... 4,176 3,906 3,951 3,608 3,662
Industry and commerce ......... 2,652 2,492 2,444 2,310 2,275
Arts and life .......................... 12,676 11,856 12,383 12,068 12,289
Language .............................. 1,628 1,535 1,473 1,329 1,332
Literature .............................. 13,327 13,048 12,979 12,104 12,071
Children's books .................... 4,350 4,721 4,583 4,295 4,446
Reference books .................... 4,875 5,306 5,105 5,470 5,711
Source: The Research Institute for Publications, The All Japan Magazine and Book
Publisher's and Editor's Association.
Figure 16.5
Trends in the Size of the Electronic Publication Market
Billion yen
500
450
(left scale) Comics
400
Magazines
Books
350
300
411.4
250
342.0
200
259.3
150 200.2
174.7
149.1
100 116.9
88.7
50 15.6 13.0 11.0 9.9
16.0 17.8
6.5 10.5
32.1 34.9 40.1 44.9
19.2 22.8 25.8 29.0
00
2014 15 16 17 18 19 20 21
Source: The Research Institute for Publications, The All Japan Magazine and Book Publisher's
and Editor's Association.
181
A total of 112 daily newspapers were in circulation, and the penetration

rate was 0.53 newspapers per household as of October 2022.
Figure 16.6
Trends in the Circulation of Newspaper (as of October) 1)
Millions
60 2.0
Circulation
(left scale)
Circulation
50
per household 2)
(right scale) 1.5
40
30 1.0
20
0.5
10
0 0.0
2014 15 16 17 18 19 20 21 22
1) Set paper counted as one copy. 2) Number of households used for calculation are derived
from the Basic Resident Registration as of January 1 of the year.
Source: The Japan Newspaper Publishers and Editors Association.
Japan has a public broadcasting network (NHK: Nippon Hoso Kyokai, or

Japan Broadcasting Corporation), as well as commercial networks. NHK is
the pioneer broadcasting station in Japan, and has been funded through
fees paid by subscribers.
Television broadcasting in Japan became fully digital at the end of March
2012, and practices like broadcasting of video and data with
high-definition image quality have become common. New 4K and 8K
satellite broadcasting began in December 2018, and products such as
televisions enabling viewing of 4K and 8K broadcasts have been
disseminated. Efforts are being made to further improve the appeal of
satellite broadcasting, such as improving and broadening 4K programs,
and steps are being taken to disseminate and develop 4K and 8K
broadcasting.
182
In 2022, advertising expenditures in the four major mass media types in

Japan (newspapers, magazines, radio and television) totaled 2.4 trillion yen,
down compared with the previous year. This accounted for 33.8 percent of
total advertising expenditures, which were 7.1 trillion yen. Spending on
Internet advertising reached 3.1 trillion yen (up 14.3 percent from the
previous year). This amounted to 43.5 percent of the total advertising
expenditures.
Table 16.6
Advertising Expenditures by Medium
Satellite Promo-
News- Maga- Tele-
Year Total Radio media- Internet tional
papers zines vision 1) related media
Advertising expenditures (billion yen)
2010 5,842.7 639.6 273.3 129.9 1,732.1 78.4 774.7 2,214.7
2015 6,171.0 567.9 244.3 125.4 1,932.3 - 1,159.4 2,141.7
2020 6,159.4 368.8 122.3 106.6 1,655.9 - # 2,229.0 # 1,676.8
2021 6,799.8 381.5 122.4 110.6 1,839.3 - 2,705.2 1,640.8
2022 7,102.1 369.7 114.0 112.9 1,801.9 - 3,091.2 1,612.4
Percentage distribution (%)
2010 100.0 11.0 4.7 2.2 29.6 1.3 13.3 37.9
2015 100.0 9.2 4.0 2.0 31.3 - 18.8 34.7
2020 100.0 6.0 2.0 1.7 26.9 - 36.2 27.2
2021 100.0 5.6 1.8 1.6 27.1 - 39.8 24.1
2022 100.0 5.2 1.6 1.6 25.4 - 43.5 22.7
1) Including "satellite media-related advertising" after 2015.
Source: Dentsu Inc.
183
5. Cultural Assets
Throughout its long history, Japan has been endowed with an abundance of
valuable cultural assets, including works of art, historic landmarks, and
many natural monuments. To pass on this cultural heritage to future
generations, the Japanese government has accorded many of the most
important assets as national treasures, designated important cultural
properties, historic sites, places of scenic beauty, or natural monuments,
based on the Act on Protection of Cultural Properties. In addition to
preserving cultural assets, measures to utilize such assets are being
established, such as expansion of viewing opportunities through
exhibitions.
Table 16.7
Cultural Properties Designated by the National Government
(as of April 1, 2023)
Type of cultural properties Number
Important cultural properties ............................................................ 13,377 a) 1,132
Fine arts and crafts ........................................................................ 10,820 a) 902
Structures ..................................................................................... 2,557 a) 230
Historic sites, places of scenic beauty and natural monuments .......... 3,353 b) 174
Historic sites ................................................................................. 1,888 b) 63
Places of scenic beauty .................................................................. 427 b) 36
Natural monuments ....................................................................... 1,038 b) 75
Important tangible folk cultural properties ........................................ 226
Important intangible folk cultural properties ..................................... 329
Important intangible cultural properties
Individual recognition ................................................................... 70
Performing arts .......................................................................... 36
Craft techniques ......................................................................... 34
Group recognition ......................................................................... 30
Performing arts .......................................................................... 14
Craft techniques ......................................................................... 16
Traditional building preservation areas ............................................. 126
a) National treasures only. b) Specially designated places only.
Source: Agency for Cultural Affairs.
184
As of April 1, 2023, 13,377 items were designated as important cultural

properties, of which 1,132 were classified as national treasures. In addition,
the government has provided support for such activities as theatrical
performances, music, handicrafts, and other important intangible cultural
properties. It also has worked to preserve important folk-cultural properties,
such as annual cultural events and folk performing arts, as well as to train
people to carry on such traditions.
Japan accepted the UNESCO World Heritage Convention (the Convention
Concerning the Protection of the World Cultural and Natural Heritage) in
1992.
In July 2021, two new sites were registered in the World Heritage List:
Amami-Oshima Island, Tokunoshima Island, Northern part of Okinawa
Island, and Iriomote Island; and Jomon Prehistoric Sites in Northern Japan.
Amami-Oshima Island, Tokunoshima Island, Northern part of Okinawa
Island, and Iriomote Island are natural heritage. They have a mild, humid
subtropical climate, and are regions inhabited by distinctive land animals,
including many endemic species and endangered species.
The Jomon Prehistoric Sites in Northern Japan are cultural heritage
consisting of 17 historic sites. These sites present the daily life and
spiritual culture of people who lived in the region for more than 10,000
years through hunting, gathering, and fishing.
185
Table 16.8
Heritage Sites Inscribed on the World Heritage List 1)
Type of
Year World heritage Prefecture
heritage
1993 Cultural Buddhist Monuments in the Horyu-ji Area Nara
Cultural Himeji-jo (castle) Hyogo
Natural Shirakami-Sanchi (mountains) Aomori, Akita
Natural Yakushima (island) Kagoshima
1994 Cultural Historic Monuments of Ancient Kyoto Kyoto, Shiga
1995 Cultural Historic Villages of Shirakawa-go and Gokayama Gifu, Toyama
1996 Cultural Hiroshima Peace Memorial (Genbaku Dome) Hiroshima
Cultural Itsukushima Shinto Shrine Hiroshima
1998 Cultural Historic Monuments of Ancient Nara Nara
1999 Cultural Shrines and Temples of Nikko Tochigi
2000 Cultural Gusuku Sites and Related Properties of the Okinawa
Kingdom of Ryukyu
2004 Cultural Sacred Sites and Pilgrimage Routes in the Kii Mie, Nara,
Mountain Range Wakayama
2005 Natural Shiretoko (peninsula) Hokkaido
2007 Cultural Iwami Ginzan Silver Mine and its Shimane
Cultural Landscape
2011 Cultural Hiraizumi-Temples, Gardens and Archaeological Iwate
Sites Representing the Buddhist Pure Land
Natural Ogasawara Islands Tokyo
2013 Cultural Fujisan, Sacred Place and Source of Artistic Yamanashi, Shizuoka
Inspiration
2014 Cultural Tomioka Silk Mill and Related Sites Gunma
2015 Cultural Sites of Japan’s Meiji Industrial Revolution: Fukuoka, Saga,
Iron and Steel, Shipbuilding and Coal Mining Nagasaki, Kumamoto,
Kagoshima,Yamaguchi,
Iwate, Shizuoka
2016 Cultural The National Museum of Western Art Tokyo
- The Architectural Work of Le Corbusier, an
Outstanding Contribution to the Modern Movement
2017 Cultural Sacred Island of Okinoshima and Fukuoka
Associated Sites in the Munakata Region
2018 Cultural Hidden Christian Sites in the Nagasaki Region Nagasaki, Kumamoto
2019 Cultural Mozu-Furuichi Kofun Group: Mounded Tombs of Osaka
Ancient Japan
2021 Natural Amami-Oshima Island, Tokunoshima Island, Kagoshima, Okinawa
Northern part of Okinawa Island, and Iriomote Island
Cultural Jomon Prehistoric Sites in Northern Japan Hokkaido, Aomori,
Iwate, Akita
1) As of January, 2023.
Source: Agency for Cultural Affairs.
186
In 2006, the UNESCO Convention for the Safeguarding of the Intangible

Cultural Heritage entered into force. As of January 2023, Japan has 22
entries on its list, including: Nogaku Theater, Ningyo Johruri Bunraku
Puppet Theater, Kabuki Theater (the kind of Kabuki performed using a
traditional method of acting and directing), and Washoku, the traditional
dietary culture of Japan.
187
Chapter 17
Government System
© AIDA Katsuhito
The Children and Families Agency was launched on April 1, 2023 as a new
organization to lead efforts related to children.
Its purpose is to consider what is best for children and to reflect those priorities in
government policy.
CHAPTER 17 GOVERNMENT SYSTEM
1. Separation of Powers
The Constitution of Japan, which went into effect on May 3, 1947, is based
on three core principles: sovereignty of the people, respect for fundamental
human rights and pacifism. To control governmental power effectively
through checks and balances, governmental power is separated into three
independent branches: legislative, executive and judicial, and each
contains a separate set of agencies and personnel.
Figure 17.1
Separation of Powers under the Constitution of Japan
Diet
Designation of (Legislative branch)

the Prime Minister /
Cabinet non-
confidence resolution
Judgment on the
constitutionality of laws
Dissolution of the
House of Election
Representatives /
Convocation of
the Diet Impeachment
trial
People
（Sovereign）
National review
Public opinion of the judges
Judgment on the lawfulness of statutes,

rules and dispositions
Cabinet Supreme Court
Designation of the Chief Justice of
the Supreme Court / Appointment
(Executive branch) of the judges of the Supreme Court (Judicial branch)
Source: Prime Minister of Japan and His Cabinet.
189
Figure 17.2
Government Organization 1) (FY2023)
〔Legislative branch〕
House of Representatives
Diet
(3,916) House of Councillors
〔Administrative/Executive branch〕
Ministry of Internal Affairs and (4,810)
Cabinet Secretariat Communications
Cabinet Cabinet Office (16,016) Ministry of Justice (55,222)
(2,057) Imperial Household Agency

Ministry of Foreign Affairs (6,604)
Fair Trade Commission
National Public Safety Ministry of Finance (72,885)

Commission
Personal Information
Protection Commission Ministry of Education, Culture, Sports,
(2,148)
Science and Technology
Casino Regulatory
Commission
Ministry of Health, Labour and Welfare (33,537)
Financial Services Agency
Ministry of Agriculture,
Consumer Affairs Agency (19,615)
Forestry and Fisheries
Children and Families
Agency Ministry of Economy, (8,007)
Trade and Industry
Digital Agency Ministry of Land, Infrastructure,

Transport and Tourism (59,457)
(497)
Reconstruction Agency
Ministry of the Environment (2,821)
(799) 2)
3)
Ministry of Defense (21,046)
Cabinet Legislation Bureau
(0)
National Personnel Authority
Board of Audit
(1,254)
〔Judicial branch〕 Summary
District Courts
Courts
Courts Supreme Court High Courts
(25,570) Family Courts
1) Figures in parentheses refer to budgetary fixed number of national government employees.

2) Of the 799 employees, 221 are from the Reconstruction Agency and 578 are from other ministries.
3) Excluding the number of the personnel of the Self-Defense Forces.
Source: Cabinet Bureau of Personnel Affairs, Cabinet Secretariat; Ministry of Finance.
190
2. Legislative Branch
The Diet is the highest organ of state power, and is the sole law-making
organ of the State. The Diet consists of the House of Representatives and
the House of Councillors. Both Houses consist of elected members,
representative of all the people.
The most important responsibility of the Diet is to enact legislation. The
Diet also has the authority to fulfill a number of additional functions,
including the deliberation and passage of the budget and other matters of
fiscal importance, the approval of treaties, the designation of the Prime
Minister and the initiation of motions to amend the Constitution. Each
House may conduct investigations relating to the government, and demand
the presence and testimony of witnesses, and the production of records.
For the Diet to pass a resolution, the agreement of both Houses of the Diet
is necessary. However, when the two Houses differ in their resolutions
regarding legislative bills, draft budgets, the approval of treaties or the
designation of the Prime Minister, under the terms of the Constitution, the
decision of the House of Representatives overrides that of the House of
Councillors.
The term of office for Diet members is set by the Constitution. Members
of the House of Representatives serve a 4-year term, while members of the
House of Councillors, 6 years. Elections for the latter are held every 3
years, so that one half of the seats are contested in each election.
The House of Representatives has 465 members. Of these, 289 are elected
under a single-seat constituency system, while 176 are elected under a
proportional representation system in which the nation is divided into 11
regions. The last general election was held in October 2021. The House of
Councillors has 248 members, of whom 100 are elected through
proportional representation, and 148 are elected as representatives from 45
electoral districts of the nation, based upon prefectures. The last regular
election was held in July 2022.
In June 2015, revisions to the Public Offices Election Law, which consist
mainly of lowering the voting age from 20 to 18 years or older, were
established and promulgated. The revisions were applied starting with the
House of Councillors regular election, which was officially announced in
June 2016. Both men and women above the qualifying age are eligible to
run in elections. The qualifying age for members of the House of
191
Representatives is 25 years or older, while the qualifying age for members

of the House of Councillors is 30 years or older.
Table 17.1
Diet Members by Political Group
House of Representatives (as of April 25, 2023) House of Councillors (as of May 7, 2023)
Membership 465, Vacancies 0 Membership 248, Vacancies 0
Name Males Females Name Males Females
Incumbents ........................................ 417 48 Incumbents ...................................... 182 66

Liberal Democratic Party ................ 242 21 Liberal Democratic Party ............... 95 24
The Constitutional Democratic The Constitutional Democratic
Party of Japan and Party of Japan and Social
the Independent ........................... 84 13 Democratic Party ........................ 20 20
Nippon Ishin Komeito ........................................ 23 4
(Japan Innovation Party) ............... 36 5 Nippon Ishin
Komeito ......................................... 28 4 (Japan Innovation Party) ............. 17 4
Democratic Party For the People .... 9 1 Democratic Party For the People
Japanese Communist Party .............. 8 2 and The Shin-Ryokufukai ............ 9 4
Yushi no Kai ................................... 5 0 Japanese Communist Party ............ 6 5
REIWA SHINSENGUMI ............... 1 2 REIWA SHINSENGUMI ............. 4 1
Okinawa Whirlwind ...................... 2 0
seijikajoshi48party ......................... 2 0
Independents .................................. 4 0 Independents ................................. 4 4
Source: The House of Representatives; The House of Councillors.
3. Executive Branch
The Cabinet exercises its executive power on the basis of the laws and
budgets adopted by the Diet. The Cabinet, composed of the Prime Minister
and other Ministers of State, is collectively responsible to the Diet,
regarding the exercise of the executive power. The Prime Minister is
elected in the Diet from among its members. The Ministers of State are
appointed by the Prime Minister, and the majority of them must be Diet
members. Thus, Japan adopts the parliamentary Cabinet system, in which
the organization and existence of the Cabinet rest on the confidence in the
Diet.
The Cabinet's powers include the following: (i) implementing laws; (ii)
engaging in foreign diplomacy; (iii) signing treaties; (iv) overseeing the
operational affairs of public officers; (v) formulating a budget and
submitting it to the Diet; (vi) enacting Cabinet orders; and (vii) deciding
amnesty. In addition, the Cabinet powers also include designating the
192
Chief Justice of the Supreme Court and appointing other judges. The
Cabinet also gives advice and approval to the Emperor in matters of state,
and bears the responsibility for this.
Table 17.2
Successive Prime Ministers
Date 1) Name Date 1) Name
Oct. 4, 2021 KISHIDA Fumio Sep. 26, 2007 FUKUDA Yasuo
Sep. 16, 2020 SUGA Yoshihide Sep. 26, 2006 ABE Shinzo
Dec. 26, 2012 ABE Shinzo Apr. 26, 2001 KOIZUMI Junichiro
Sep. 2, 2011 NODA Yoshihiko Apr. 5, 2000 MORI Yoshiro
Jun. 8, 2010 KAN Naoto Jul. 30, 1998 OBUCHI Keizo
Sep. 16, 2009 HATOYAMA Yukio Jan. 11, 1996 HASHIMOTO Ryutaro
Sep. 24, 2008 ASO Taro Jun. 30, 1994 MURAYAMA Tomiichi
1) Date of initial cabinet formation.
Source: Prime Minister of Japan and His Cabinet.
4. Judicial Branch
Judicial power resides in the courts and is independent from the executive
branch and the legislative branch.
The Constitution provides for the establishment of the Supreme Court as
the highest court with final judgment, while the Court Act provides for 4
lower-level courts (High Court, District Court, Family Court and Summary
Court). At present, there are 8 High Courts, 50 District Courts, 50 Family
Courts, and 438 Summary Courts throughout the nation.
To ensure fair judgments, Japan uses a three-tiered judicial system. The
first courts in the court hierarchy are the District Courts, the second are the
High Courts, and the highest court is the Supreme Court. The system thus
allows a case to be heard and ruled on up to 3 times in principle, should a
party involved in the case so desire. The Summary Courts and Family
Courts handle simple cases, domestic relations and cases involving
juveniles as first courts.
The Supreme Court has the authority to deliver the final judgment on the
legitimacy of any law, ordinance, regulation, or disposition. It is chaired by
the Chief Justice and 14 judges.
A lay judge system began in May 2009. This is a system under which
citizens participate in criminal trials as judges to determine, together with
193
professional judges, whether the defendant is guilty or not and, if found

guilty, what sentence should apply. What is hoped for is that the public's
participation in criminal trials will make citizens feel more involved in the
justice process and make the trials easier to understand, thus leading to the
public's greater trust in the justice system. A total of 15,089 people were
tried in lay judge trials held between the start of the system and December
2022.
Table 17.3
Judicial Cases Newly Commenced, Terminated or Pending (All courts)
(Thousands)
1)
Civil and administrative cases Criminal cases
Year
Commenced Terminated Pending Commenced Terminated Pending
2005 2,713 2,827 576 1,568 1,572 47
2010 2,179 2,241 536 1,158 1,161 36
2015 1,432 1,425 409 1,033 1,030 34
2020 1,350 1,324 456 852 851 33
2021 1,374 1,400 430 845 847 31
Domestic cases Juvenile cases 1)
Year
Commenced Terminated Pending Commenced Terminated Pending
2005 718 713 99 237 238 32
2010 815 815 106 165 168 25
2015 970 959 133 95 98 13
2020 1,105 1,092 159 53 54 8
2021 1,150 1,156 154 47 48 7
1) The number of persons.
Source: Supreme Court of Japan.
5. Local Governments
The affairs of local governments in Japan are conducted by ordinary local
governments (prefectures and municipalities within each prefecture) and
by special local governments, such as special wards. As of October 1, 2018,
Japan has 47 prefectures, within which there are 1,718 municipalities, plus
the 23 Cities of Tokyo metropolis. In order to strengthen the administrative
and fiscal foundation of the municipalities, municipal mergers were
promoted by law. Consequently, the number of municipalities was reduced
by nearly half from the 3,232 existing at the end of March 1999.
Municipalities that satisfy certain population criteria (i.e., 500,000 people
or more) are eligible for designation as "Ordinance-designated cities". This
designation gives them administrative and fiscal authority equivalent to
194
those of prefectures. With the addition of Kumamoto City in April 2012,

there are presently 20 cities that have earned this designation. See the map
on the inside back cover.
Figure 17.3
Government System by Level 1) (as of October 1, 2018）
National level Local level

Municipalities
Ordinance-
National Wards
Prefectures (47) designated cities
government
(20)
Cities (772)
Towns (743)
Villages (183)
23 Cities of Tokyo Metropolis
1) Figures in parentheses indicate number.

Figure 17.4
Local Government Employees by Type of Administrative Services
(as of April 1, 2022)
%
0 20 40 60 80 100
Employed Police
persons Education 38.0 % 19.8 13.7 10.3
2,803,664
General administrative services Hospitals 7.2
Social welfare and public hygiene Fire services 5.8
Water and sewerage 2.4
Transportation 0.7
Others 2.1
195
APPENDICES
Appendix 1
Population, Surface Area, and Population Density by Prefecture
Surface area (km2) Population density (per km2)
Prefectural Population (1,000)
Prefectures Total area Inhabitable Total area Inhabitable
capital cities 1)
2020 2022 2) 2021 2021 2021 2021
Japan ............................................. 126,146 124,947 377,975 122,956 337 1,021
Hokkaido ............ Sapporo City 5,225 5,140 83,424 22,699 66 228
Aomori ............... Aomori City 1,238 1,204 9,646 3,253 127 375
Iwate .................. Morioka City 1,211 1,181 15,275 3,751 78 319
Miyagi ................Sendai City 2,302 2,280 7,282 3,186 315 719
Akita .................. Akita City 960 930 11,638 3,233 81 292
Yamagata ........... Yamagata City 1,068 1,041 9,323 2,873 113 367
Fukushima .......... Fukushima City 1,833 1,790 13,784 4,231 132 428
Ibaraki ................Mito City 2,867 2,840 6,097 3,889 468 733
Tochigi ............... Utsunomiya City 1,933 1,909 6,408 3,005 300 639
Gunma ................Maebashi City 1,939 1,913 6,362 2,269 303 849
Saitama .............. Saitama City 7,345 7,337 3,798 2,603 1,933 2,820
Chiba ..................Chiba City 6,284 6,266 5,157 3,534 1,217 1,776
Tokyo ................. 23 Cities of Tokyo 14,048 14,038 2,194 1,423 6,386 9,847
Kanagawa ...........Yokohama City 9,237 9,232 2,416 1,474 3,823 6,267
Niigata ............... Niigata City 2,201 2,153 12,584 4,550 173 478
Toyama .............. Toyama City 1,035 1,017 4,248 1,842 241 556
Ishikawa ............. Kanazawa City 1,133 1,118 4,186 1,395 269 807
Fukui ..................Fukui City 767 753 4,191 1,077 181 706
Yamanashi ..........Kofu City 810 802 4,465 953 180 845
Nagano ............... Nagano City 2,048 2,020 13,562 3,249 150 626
Gifu ....................Gifu City 1,979 1,946 10,621 2,211 185 887
Shizuoka .............Shizuoka City 3,633 3,582 7,777 2,775 464 1,300
Aichi .................. Nagoya City 7,542 7,495 5,173 2,996 1,453 2,509
Mie .....................Tsu City 1,770 1,742 5,774 2,064 304 851
Shiga .................. Otsu City 1,414 1,409 4,017 1,300 351 1,086
Kyoto ................. Kyoto City 2,578 2,550 4,612 1,177 555 2,175
Osaka ................. Osaka City 8,838 8,782 1,905 1,334 4,622 6,601
Hyogo .................Kobe City 5,465 5,402 8,401 2,769 647 1,961
Nara ................... Nara City 1,324 1,306 3,691 854 356 1,540
Wakayama ..........Wakayama City 923 903 4,725 1,123 194 814
Tottori ................ Tottori City 553 544 3,507 904 157 607
Shimane ..............Matsue City 671 658 6,708 1,271 99 523
Okayama ............ Okayama City 1,888 1,862 7,114 2,228 264 842
Hiroshima ...........Hiroshima City 2,800 2,760 8,479 2,298 328 1,210
Yamaguchi ......... Yamaguchi City 1,342 1,313 6,113 1,715 217 774
Tokushima ..........Tokushima City 720 704 4,147 1,016 172 701
Kagawa .............. Takamatsu City 950 934 1,877 1,005 502 937
Ehime ................. Matsuyama City 1,335 1,306 5,676 1,666 233 793
Kochi ..................Kochi City 692 676 7,104 1,161 96 589
Fukuoka ............. Fukuoka City 5,135 5,116 4,987 2,764 1,028 1,854
Saga ................... Saga City 811 801 2,441 1,335 330 604
Nagasaki ............ Nagasaki City 1,312 1,283 4,131 1,668 314 778
Kumamoto ..........Kumamoto City 1,738 1,718 7,409 2,747 233 629
Oita .................... Oita City 1,124 1,107 6,341 1,795 176 621
Miyazaki ............ Miyazaki City 1,070 1,052 7,735 1,876 137 566
Kagoshima ..........Kagoshima City 1,588 1,563 9,186 3,287 172 479
Okinawa ............. Naha City 1,467 1,468 2,282 1,126 643 1,304
1) Population Census. 2) Population Estimates.
Source: Statistics Bureau, MIC; Geospatial Information Authority of Japan.
196
APPENDICES
Appendix 2
Conversion Factors
Metric units British Imperial and U.S. equivalents
Length: 1 centimeter (cm) ........................... 0.39370 inches
3.28084 feet
1 meter (m) ....................................
1.09361 yards
1 kilometer (km) ............................. 0.62137 miles
10.7639 square feet
Area: 1 square meter (m2) ........................
1.19599 square yards
2
1 square kilometer (km ) ................ 0.38610 square miles
1 hectare (ha)
......... 2.47105 acres
10,000 square meters (m2)
35.3147 cubic feet
Volume: 1 cubic meter (m3) .......................... 1.30795 cubic yards
35.2740 ounces
Weight: 1 kilogram (kg) ...............................
2.20462 pounds
0.98421 long tons
1 ton (t) ..........................................
1.10231 short tons
0.87988 imp. Quarts
Capacity: 1 liter (L) ........................................
1.05669 U.S. liq. Quarts
Temperature: centigrade (℃) ............................... 5 / 9 ×(Fahrenheit - 32)
Appendix 3
Foreign Exchange Rates 1)
(Yen per U.S. dollar)
Year Average End of year
2000 107.77 114.90
2001 121.53 131.47
2002 125.31 119.37
2003 115.93 106.97
2004 108.18 103.78
2005 110.16 117.48
2006 116.31 118.92
2007 117.76 113.12
2008 103.37 90.28
2009 93.54 92.13
2010 87.78 81.51
2011 79.81 77.57
2012 79.81 86.32
2013 97.63 105.37
2014 105.85 119.80
2015 121.03 120.42
2016 108.84 117.11
2017 112.16 112.65
2018 110.39 110.40
2019 109.01 109.15
2020 106.78 103.33
2021 109.80 115.12
2022 131.38 132.14
1) Midpoint rate in the interbank foreign exchange market in Tokyo.
197

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STATISTICAL HANDBOOK OF

Edited and Published by

This handbook is designed to provide a clear and coherent

－ Magnitude zero or figures not applicable

0 or 0.0 Less than half of unit employed

＃ Marked break in series

Chapter 1 Land and Climate .......................................................................... 1

Chapter 2 Population ....................................................................................... 7

Chapter 3 Economy ........................................................................................ 22

Chapter 4 Finance .......................................................................................... 34

Chapter 6 Manufacturing and Construction ............................................. 65

Chapter 7 Energy ............................................................................................ 76

Chapter 8 Science and Technology/Information and Communication .. 84

Chapter 10 Commerce ................................................................................. 104

Chapter 11 Trade, International Balance of Payments, and

Chapter 12 Labour ....................................................................................... 123

Chapter 13 Family Budgets and Prices ..................................................... 138

Chapter 14 Environment and Life ............................................................. 154

Chapter 16 Education and Culture ........................................................... 173

Chapter 17 Government System ................................................................ 188

1.1 Surface Area of Japan .........................................................................2

2.1 Countries with a Large Population .....................................................8

3.1 Gross Domestic Product (Expenditure approach) .......................... 27

4.1 Expenditures of General Account ................................................... 37

5.1 Total Agricultural Output ................................................................. 55

6.1 Establishments, Persons Engaged, and Value of

7.1 Trends in Domestic Supply of Primary Energy and Percentage

8.1 Trends in Researches and Expenditures on R&D .......................... 85

9.1 Domestic Passenger Transport ........................................................ 98

11.1 Trends in Foreign Trade and Indices of Trade ............................. 109

12.1 Population by Labour Force Status .............................................. 125

13.1 Average Monthly Income and Expenditures per Household

14.1 Breakdown of Carbon Dioxide Emissions .................................. 155

16.1 Educational Institutions in Japan .................................................. 174

17.1 Diet Members by Political Group ................................................ 192

1.1 Famous Mountains of the World ........................................................3

2.1 Population Pyramid .............................................................................8

4.1 Revenue and Expenditure in the General Account ........................ 36

5.1 Number of Employed Persons and

6.1 Trends in Indices on Mining and Manufacturing ........................... 69

7.1 Domestic Supply of Primary Energy by Energy Source ............... 78

8.1 Researchers and Expenditures by Industry

9.1 Composition of Domestic Transport ............................................... 97

11.1 Foreign Trade .................................................................................. 108

13.1 Average Monthly Consumption Expenditures per Household

14.1 Sources of Carbon Dioxide Emissions ........................................ 156

15.1 Trends in Social Security Benefit Expenditures by Sector ......... 167

16.1 Japanese School System ............................................................... 175

17.1 Separation of Powers under the Constitution of Japan ............... 189

Cover photo: Mt. Fuji

© Statistics Bureau, MIC

Table 1.1 Table 1.2

Figure 1.1 Table 1.3

Naha 10.0 100

Source: Japan Meteorological Agency.

People and carp streamers.

Age 83 years: Birth rate declined in 1938-39

Korea, Rep. of 524.0

Belgium 381.9 = 50 persons

Sri Lanka 346.3