These days, the word ‘working poor’ becomes popular in Japanese society. Almost every week, many TV programs feature the real life of working poor and books which relate to working poor fill with book store’s shelves. For example, the book, ‘The Working Poor’ introduces miserable working poor’s living of 55 years man who used to be a systems engineer (Kadokura 76). These trends show that more and more people come to think seriously about poverty-what we call working poor. There are many definitions of working poor. For instance, according to Iwata, working poor is defined as people who can’t earn enough money to live in spite of their hard working (Iwata 16). On the other hand, the United States Department of Labor Bureau of Labor Statistics define the working poor differently, the working poor are individuals who spent at least 27 weeks in the labor force (working or looking for work), but whose incomes fell below the official poverty level (U.S. Department of Labor). Also International Labor Organization define the working poor in detail, working poor are workers who live on under two dollars a day. This paper employs Iwata’s definition of the working poor because it seems most preferable to Japanese situation. This paper will argue that the working poor in Japan society is a problem because it deprives people of human dignity, causes exploding cost of social insurance and accelerate declining birth rate in Japan.
Ⅰ. Situations of Working Poor
Working poor are very pessimistic about their future because their standard of living is very low and it seems that there is no exit of poverty. According to Iwata who studies about poverty and welfare policy, there are bad cycles of poverty (Iwata 138). These days expenses for education are increasing (Cabinet Office, Government of Japan), however, working poor can not invest in themselves through education and they have poor academic background (Iwata 141). In Japan’s education-conscious society, working poor can not get highly-income job. Poor educational background and low-paid job force working poor to be remain working poor. Kim support this idea in the journal, ‘We conclude that rather than being poor because of their own bad choices or behavior, the working poor are destitute because of the particular jobs they hold, which tend to be in low-paid service occupations and industries’ (Kim). Most of working poor are irregular workers. They work as day labor. They register at temporary employment agency (such as Good Will or Interigence) and get the jobs from this company. However, they can not always get the job when they want to work and their daily wages are very low (NHK 33). Therefore, they are forced to live a day-to-day existence. Working poor can’t rent an apartment because they can’t save enough money to rent (Kadokura 34). They stay at net-café or fast food shop during night time and they have no address. This fact makes working poor difficult to apply for jobs which pay enough money to live. They continue to work as day labor. Working poor can’t prospect for the future. This makes them very pessimistic.
Working poor has big impact on Japanese society because it oppresses budget. The numbers of people who are classed as lower income group which can get livelihood protection from government as welfare are increasing (Japan, Social Insurance Agency). Transitions of social insurance cost between 1970 and 2005 in Japan are below.
Ⅰ. Situations of Working Poor
Working poor are very pessimistic about their future because their standard of living is very low and it seems that there is no exit of poverty. According to Iwata who studies about poverty and welfare policy, there are bad cycles of poverty (Iwata 138). These days expenses for education are increasing (Cabinet Office, Government of Japan), however, working poor can not invest in themselves through education and they have poor academic background (Iwata 141). In Japan’s education-conscious society, working poor can not get highly-income job. Poor educational background and low-paid job force working poor to be remain working poor. Kim support this idea in the journal, ‘We conclude that rather than being poor because of their own bad choices or behavior, the working poor are destitute because of the particular jobs they hold, which tend to be in low-paid service occupations and industries’ (Kim). Most of working poor are irregular workers. They work as day labor. They register at temporary employment agency (such as Good Will or Interigence) and get the jobs from this company. However, they can not always get the job when they want to work and their daily wages are very low (NHK 33). Therefore, they are forced to live a day-to-day existence. Working poor can’t rent an apartment because they can’t save enough money to rent (Kadokura 34). They stay at net-café or fast food shop during night time and they have no address. This fact makes working poor difficult to apply for jobs which pay enough money to live. They continue to work as day labor. Working poor can’t prospect for the future. This makes them very pessimistic.
Working poor has big impact on Japanese society because it oppresses budget. The numbers of people who are classed as lower income group which can get livelihood protection from government as welfare are increasing (Japan, Social Insurance Agency). Transitions of social insurance cost between 1970 and 2005 in Japan are below.
In 2005, total social insurance cost increase 2.3 per cent than last year. According to Ministry of Health, Labor and Welfare, total insurance cost in 2005 was 879,150 billion yen. However, it is estimated that total insurance cost in 2025 will be 1410,000billion, almost twice the it is cost in 2005 (Ministry of Health, Labor and Welfare). This amount of money which relate to social insurance deserve 25 per cent of national income (Ministry of Health, Labor and Welfare). This tendency of increasing costof social insurance can not stop if working poor increase.
Working poor have tendency to have no spouse and no children. According to research which by Iwata, unmarried rate is high in the working poor class (Iwata 146). The reason why working poor have tendency to be single is that they can't earn enough money to keep their own family. For example, 30 years old woman who works part-time said, ‘I want to marry my boyfriend. However I think I can’t marry with him because I can not earn enough money to support a family' (Kadokura 126). Other working poor think nothing about marriage even imagine. Iwata introduced Kiyoshi who became working poor from 3 years ago because of his illness. 'I do not intend to marry because it is as much as I can do to support myself' (Iwata 147). Low income makes working poor to be single.
Ⅱ. Problems of Working Poor
First problem which is caused by working poor is that people who are classed as working poor lose their dignity as human being. Harsh living standards and uneasy prospects for future deprive people of desire for life. Also working poor feel they alienated fromsociety because their effort to improve their life has never been rewarded. This alienation hurt human dignity.
Second, exploding social insurance cost will be caused by workingpoor. As I said above, total insurance cost has been increasing evry year to year. Social insurance cost will be double by 2025 (Ministry of Health, Labor and Welfare). So increasing numbers of working poor mean the expansion of welfare cost. For instance, local government of Tokyo adds 97 billion yen to expenditure in this year(2008) in order to support working poor economically (Nikkei). Expansion of expenditure leads to budget deficit. However, this welfare is too little for people to escape from workingpoor. In Japan lowest cost of living minus income is given as welfare(Social Insurance Agency). For example 20 years person who live in Tokyois guaranteed 40,000 yen as cost of living. However this money is too little to start something new in order to escape working poor, such as education or job training. On the other hand, expenses of welfare have big pressure on national expenditure. In 2005, expenses which relate to social insurance occupies 16 per cent of national income. This social insurance schemes can not be drastic solution of working poor problem. Both workingpoor and expenditure which relates to welfare will increase in the future.
Third, working poor accelerates declining birth rate in Japan. As I said above, working poor have tendency to be single so they do not have children and this cause decrining birth rate. The chart bellow which was made by Ministry of Health, Labor and Welfare shows declining birth rate in Japan.
This chart shows birth rate is decreasing in Japan. On the other hand, the graph which made by National Tax Agency shows that the number of working poor increase year to year during 1998 to 2005 (National Tax Agency). When the number of working poor increase birth rate decreases in inverse proportion to the number of working poor. Therefore, working poor is problem because it contribute to decrining birth rate to some extent.
Ⅲ. Possible Solutions
In order to protect working poor’s human dignity, offering public job to working poor is one solution. According to New Public Management (NPM) Particular administration services which are offered by government can be offered by private sector (Osumi). For example collecting garbages or cleaning up public facilities. By employing working poor in order to provide such services, working poor can get stable job and income. Moreover, through engaging public job, working poor can feel a sense of belonging to their own community. Stable job give working poor ease. A sense of belonging removes alienation from working poor.
Second, by reforming social insurance schemes, social insurance cost and the number of working poor can be reduced. Until now, social insurances pay money to low income people. However this type of social insurance can’t be drastic solution. Because ammount of money which is given are too little to escape from working poor. In order to escape working poor job training is essntial(David K. Shipler). The money which given as welfare is too little to take job training. Instead of giving money to poor people, social insurance should offer job training to working poor. By giving job training to working poor some of them get high income job and number of working poor reduce gradually. Then, welfare cost will also decrease in proportion to the decreasing of working poor. According to report which was written by Japan Research Institution, giving job- training to working poor suceeded in reducing the number of working poor (JRI). Japanese social insurance schems should give job training to working poor instead of giving money in order to reduce both social insurance cost and the number of working poor.
Lastly, job sharing is available to improve declining birth rate. Regular worker earn much money comparable to working poor. However they also tend not to have child because they don’t have much time to bring up their child. Sharing their hard work with working poor gives merit to both regular workers and working poor. Regular workers can get time to bring up their child. Working poor can get money to bring up their child. Job sharing brings regular workers and working poor win-win relationships.
Working poor is problem because it hurts human dignity, causesexplodingwelfare cost and accelerates declining birth rate. However,these problemscan be reduced by giving public job, reforming socialinsurance schemes andjob sharing.
Ⅲ. Possible Solutions
In order to protect working poor’s human dignity, offering public job to working poor is one solution. According to New Public Management (NPM) Particular administration services which are offered by government can be offered by private sector (Osumi). For example collecting garbages or cleaning up public facilities. By employing working poor in order to provide such services, working poor can get stable job and income. Moreover, through engaging public job, working poor can feel a sense of belonging to their own community. Stable job give working poor ease. A sense of belonging removes alienation from working poor.
Second, by reforming social insurance schemes, social insurance cost and the number of working poor can be reduced. Until now, social insurances pay money to low income people. However this type of social insurance can’t be drastic solution. Because ammount of money which is given are too little to escape from working poor. In order to escape working poor job training is essntial(David K. Shipler). The money which given as welfare is too little to take job training. Instead of giving money to poor people, social insurance should offer job training to working poor. By giving job training to working poor some of them get high income job and number of working poor reduce gradually. Then, welfare cost will also decrease in proportion to the decreasing of working poor. According to report which was written by Japan Research Institution, giving job- training to working poor suceeded in reducing the number of working poor (JRI). Japanese social insurance schems should give job training to working poor instead of giving money in order to reduce both social insurance cost and the number of working poor.
Lastly, job sharing is available to improve declining birth rate. Regular worker earn much money comparable to working poor. However they also tend not to have child because they don’t have much time to bring up their child. Sharing their hard work with working poor gives merit to both regular workers and working poor. Regular workers can get time to bring up their child. Working poor can get money to bring up their child. Job sharing brings regular workers and working poor win-win relationships.
Working poor is problem because it hurts human dignity, causesexplodingwelfare cost and accelerates declining birth rate. However,these problemscan be reduced by giving public job, reforming socialinsurance schemes andjob sharing.
In 2005, total social insurance cost increase 2.3 per cent than last year.According to Ministry of Health, Labor and Welfare, total insurance costin 2005 is 879,150 billion yen however, it's estimated that totalinsurance cost in 2025 is 1410,000billion, almost twise than 2005(Ministry of Health, Labor and Welfare). This ammount of money whichrelate to social insurance deserve 25 per cent of national income(Ministry of Health, Labor and Welfare). This tendency of increasing costof social insurance can't stop if working poor increase.
