Haruhiko Kuroda: New challenges for Japan's labor market

Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at the Japan Summit 2016, Tokyo, 21 October 2016.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

It is my great pleasure to have the opportunity today to speak at this Japan Summit 2016. Today's summit brings to the fore the new challenges for Japan's labor market in responding to advances in technological innovation, globalization, and demographic change.

Whether Japan's economy will grow in the long-run depends on whether the country's labor market can successfully adapt to this changing environment. Indeed, labor market reform is a vital part of the current government's policy agenda. As for the long-term economic outlook, given Japan's aging population and low birth rate, an increase in labor force participation and a further rise in labor productivity are both essential if Japan is to lift sustainable long-run growth, in other words, to raise its growth potential.