Japanese Unemployment Rises;
will free money help?
January 29, 1999
BY MICHAEL ZIELENZIGER
(San Jose) Mercury News Tokyo Bureau
TOKYO -- As they dozed off in their lounge chairs or pawed through the library of lurid cartoon novels, the regulars at the Comic Boy Cafe didn't need to glance at the latest jobless data on Friday to know that Japan's employment outlook remains grim.
Although they were dressed in natty three-button blue suits, crisp white shirts and ties, the 14 young men ensconced in this shabby office building on a workday afternoon had no better place to be. So they were killing time in a drab room that offers a few cloth chairs, some free coffee and shelf after shelf of comic books.
``I'm worried I might not have a job soon,'' admitted Hiroshi, 35, putting down his fantasy-filled comic. ``I'm a salesman in the automotive business, and since nobody's buying any cars I have a lot of time on my hands.''
Hiroshi's not alone.
On Friday the Japanese government announced that the nation's jobless rate last year was 4.1 percent -- the highest annual rate since Japan adopted its current statistical formula some 45 years ago. And for the first time in history, the monthly unemployment rate equaled that of the United States for two months running, 4.4 percent in November and 4.3 percent in December.
Most economists had expected even worse news. But Japan's December unemployment rate did not climb above the U.S. figure -- mostly because of a sharp increase in the number of unemployed Japanese who simply stopped looking for work.
Economists say Japan's jobless rate probably would double if the nation used the same unemployment criteria as the United States. In Japan, anyone who was paid for a single hour of work during the survey week is considered employed, according to Brian Rose, an economist for the securities firm Warburg, Dillon Read and an expert on Japanese labor statistics.
``There are still a huge number of underemployed, people who have desks and are getting paid but have nothing to do,'' he said.
In a nation where unemployment carries a cultural stigma, the sudden popularity of comic book cafes is a symbol of Japan's unique strategy for coping with troubled times. Japanese companies are so reluctant to fire workers that many people are given make-work jobs and regular paychecks even if they have little to do.
Those who do lose their jobs find it hard to find new ones because the Japanese labor market traditionally hired young people for life -- and that leaves few opportunities for experienced workers leaving failing firms.
The men in dark suits gathered in this fifth-floor coffee shop at 2 on a sunny weekday afternoon could be considered lucky. They all claimed to have jobs, and some even wore tiny metal corporate pins in their lapels to prove their fealty. But it was sometimes difficult to discern whether the leather briefcases they carried contained anything more substantial than lunch.
``Honestly, I don't really feel like I'm wasting my time,'' said Norihiko, who described himself as a ``consultant.''
Occasionally glancing at his shiny Rolex watch, he gathered his thoughts between appointments and waded through a manga, or comic book, describing the experiences of a fantasy gangster. ``But I guess it's true the Japanese are not so good at using their time efficiently.''
Here and at the Gera-Gera (Japanese for ``laughter'') Cafe, another large room in a seedy office building offering patrons shelves bulging with manga, almost every seat was occupied by well-dressed men killing time out of sight of their bosses. Some were smoking; a few brought in box lunches of sushi or sandwiches. Occasionally a drowsy salaryman roused to answer his cellular phone. Around them, stacks of neatly cataloged manga were arranged by subject: golf, adventure, history, girls' topics, fantasy, wrestling.
``I usually get here once a week to catch up on the sumo manga,'' said Shinobu, 36, who said he works for a publishing house. ``If I have time to kill, this is one of my favorite places to come because it's comfortable and a pretty inexpensive place.''
Japanese workers were long the envy of the world. The country's efficient manufacturing, perpetual economic growth and system of lifetime employment bred harmony and created unprecedented prosperity.
But eight years after its inflated real estate and stock prices began collapsing, Japan's economic output is shrinking -- and with it the job market. So desperate is the government to boost consumer spending that on Friday it began distributing some $60 billion in scrip to low-income senior citizens and families with children 15 or younger. The coupons, worth $180 per eligible person, must be spent in local shops.
Rising underemployment, however, has been a boon to comic book cafes, according to Junichiro Shimizu, who said he now manages a chain of 14 Gera-Geras around Tokyo after launching his venture just 18 months ago.
``Ours is one of the few businesses that does well during bad times,'' he said. ``Because we are now facing a recession, there are many salaryman who don't have enough work, and even salesmen don't have enough clients to visit. They cannot go back to the office, so instead they spend time reading manga.''
Customers usually pay about $4 for the first hour at comic coffee shops; after that they pay 80 cents for each additional 15 minutes. Patrons are encouraged to bring food, and some cafes offer free coffee or soft drinks. A popular coffee shop can produce $60,000 in revenues per month, Shimizu said.
Often, salarymen such as Norihiko have to return to their offices late in the day, then spend the evening eating or drinking with their bosses to win promotions. So it's natural that they want to sleep during the day.
``Believe it or not,'' said Norihiko, ``it's tiring when you don't have much work to do.''