Annual Health, Labour and Welfare Report 2010-2011 (Summary) Outlook and future prospects of the Japanese social security system — Looking back over the fifty years with universal health insurance and universal pension systems — ○ Achievement of the ongoing social security reform discussion will require the understanding and cooperation of Japanese citizens and be based on a wide range of discussions involving various perspectives. ○ Japan has had "universal health insurance and universal pension systems" since April 1961, or a half century ago, which enable all Japanese citizens to access to medical insurance and a pension, and is one of the best systems in the world. ○ Part 1 of the Annual Health, Labour and Welfare Report 2010-2011 is therefore entitled '— Looking back over the fifty years with universal health insurance and universal pension systems —', and explains the roles Japan's social security systems have fulfilled, along with providing the background social and economic situations. ○ - In addition, and because of the Great East Japan Earthquake that occurred on March 11th, 2011, our response to the earthquake is featured at the beginning of Part 2 of the Annual Report. - 1 - Part 1 Outlook and future prospects of the Japanese social security system — Looking back over the fifty years with universal health insurance and universal pension systems — - 2 - Chapter 1: Historical background 1945-1954 from 1955 to the Oil Shock 1975-1988 1989-98 response to the aging 1999- society w/ declining birth rate toward the global economy Resurgence from High economic Stable economic Bubble economy and Stagnation Economy devastation growth growth its collapse Greatest importance on Development of industrialization Trend toward service Industry the first industry economy Employment Japanese-style employment practices (lifetime employment, seniority-based wages, labor unions Companies reconsider labor Increase in the proportion of organized on a company basis) are being established costs, including welfare non-regular employees Among the employed: Among the employed: Employees: 55.1% Increase in the number of female Employees: 86.9% Self employed: 21.9% employees, as well as part-time workers Self employed: 9.5% Workers in family Workers in family Proportion of the businesses: 23.0% Proportion of the Proportion of the businesses: 3.2% employed in agriculture, employed in agriculture, employed in agriculture, forestry, and fishery forestry, and fishery forestry, and fishery Unemployment rate: 1.4% Unemployment rate: 5.1% industries: 48.5% (1955) (1961) industries: 13.8% (1975) industries: 4.8% (2005) (2009) Population being concentrated in large cities Weakening ties in communities Family Average number of Increasing trend Increasing number Increasing number Average number of (Household) household members: toward nuclear of dual-income of one-person household members: 4.97 (1950) families households households 2.56 (2005) Aging society Society with First baby boom Second baby boom Population The total population was steadily increasing with decreasing declining population birth rate 1970: aging society: 1994: aged society: Most common more than 7% of the more than 14% of the Decreasing Most common causes of death population are 65 population are 65 population of causes of death in in 1948: (1) TB; years old or older years old or older the working 2010: (1) cancer; (2) stroke generation (2) heart diseases Average life expectancy was Infectious diseases Average life expectancy lifestyle diseases Diseases Advances in modern medicine 50s for both males and reaches around 80s for females both males and females - 3 - Chapter 1, Section 1: Changes in the economic situation and work environment —Whereas living standards have been improving uncertainty with employment has recently been significantly increased— (1) Chart Real GDP growth rate, inflation rate, and changes in total cash wages (text p. 8) Chart Changes in total unemployment rate and active job openings-to-applicants ratio (text p. 9) Real GDP growth rate was 6-10+ % in the high economic growth period; The total unemployment rate was around one percent the oil shock has resulted in a sharp increase in commodity prices. until the 1970s but it has sharply risen in recent years. Total un- employment Rate of change in rate total cash wages Inflation rate Active job openings-to- applicants ratio Active job opening Total unemployment Total Real GDP growth rate 0.52 (Year) High economic Oil shock Steady growth Bubble Collapse of Bankruptcy of growth period period economy bubble Lehman Brothers (Year) Source: Calculated by Counselor Office for Policy Evaluations, MHLW, and based on "National Accounts of High economic Oil shock Steady growth Bubble Collapse of Bankruptcy of Japan", Cabinet Office, "Consumer Price Index", Statistics Bureau, Ministry of Internal Affairs, and growth period period economy bubble Lehman Brothers "Monthly Labour Survey", Communications Statistics and Information Department, MHLW Source: "Labour Force Survey", Statistics Bureau, Ministry of Internal Affairs and Communications, "Employment Security Note: Figures for the rate of change in total cash wages are from the manufacturing industry and of businesses Services Statistics", Employment Security Bureau, MHLW with 30+ employees until 1970, and the average of all industries and businesses with 30+ employees Note: The active job openings-to-applicants ratio is the annual average, and excludes new graduates but includes from 1971 and thereafter. part-timers - 4 - Chapter 1, Section 1: Changes in the economic situation and work environment —Whereas living standards have been improving uncertainty with employment has recently been significantly increased— (2) Chart Changes in employment by employment pattern (text p. 12) More than half of all female workers and an increasing proportion of male workers are irregularly employed. Company and organization officials (Year) Chart Changes in employment by industry (Text p. 9) Males Females Regular [Others] temporary permanent Around one third of workers were engaged in primary industries in 1961 when and day laborers employees the universal health insurance and universal pension systems were introduced. [Others] part-time and temporary workers Service industry (unless Public otherwise categorized) service Compound services Regular officials and [Others] part-time workers, Service employees workers dispatched from industry Medicine and welfare labor dispatch services, Wholesale and Education and Tertiary contract employees and Officials in private companies retail, financial learning support temporary workers industries and insurance, Lifestyle services and real estate entertainment Regular officials and businesses employees Transportation and Accommodation, food telecommunication, and drink services electricity, gas, Academic research, heating and water (×10,000) specialty and industries Source: Calculated by Counselor Office for Policy Evaluations, MHLW, and based on "Employment Status Survey", Statistics Bureau of engineering services Secondary Manufacturing Ministry of Internal Affairs and Communications industries industry Chart Changes in households with full-time homemakers and dual-income households (text p. 13) Mining and construction Until the situation reversed in the 1990s there were more households industries (×10,000 with so-called full-time homemakers than dual-income households. households) Agriculture, Primary forestry, and industries fishing industries Households with a male employee and a nonworking wife (Year) Source: "Labour Force Survey", Statistics Bureau, Ministry of Internal Affairs and Communications Note: JSIC gets revised and hence the industries differ and are inconsistently represented before 2009. Households with two working employees (Year) Source: Calculated by Counselor Office for Policy Evaluations, MHLW, and based on "Labour Force Special Survey", Statistics Bureau of Ministry of Internal Affairs and Communications for 1980-2001 and "Labour Force Survey (Detailed) (Annual Average)", Statistics Bureau of Ministry of Internal Affairs and Communications for 2002 and thereafter Note: 1. "Households with a male employee and a nonworking wife" denotes a household of a husband who is employed in an industry other than agriculture and forestry and a nonworking wife (not in labor force or totally unemployed). 2. "Households with two working employees" denotes a household with both the husband and wife being employed in an industry other than agriculture and forestry. 3. Care should be taken with any time-series comparison of the "Labour Force Special Survey" and "Labour Force Survey (Detailed)" as they differ in survey methods and survey month. - 5 - Chapter 1, Section2: Changes in family structure —Large families have been overwhelmed by an increasing number of one-person households— (1) Chart Changes in household numbers by family type and average number of household members (text p. 16) Chart Changes in number of one-person (elderly one-person) and three-generation households (text p. 17) Whereas one-person households have been increasing, 'Husband and wife with One-person households are projected to increase in the child(ren)' and 'Others' have been decreasing future, including elderly one-person households. (Thousand (Thousand households) households) Actual figures Estimated as of 2008 Actual figures Estimated as of 2008 (Census) (Households Projections) (Census) (Households Projections) Others One-person One- person Single-parent