Asia | Japan’s working poor

Struggling

Poverty worsens as more Japanese work on non-permanent contracts

Pit stop
|YOKOHAMA

THE residents of Kotobuki live not far from the glitzy shops and upscale restaurants of Yokohama, Japan’s second-biggest city, adjoining Tokyo, the capital. Yet Kotobuki is an altogether different world: a squalid district, it is a pit stop for local Japanese on their way to destitution. Men living here in cheap hostels have lost jobs and families. Some survive on casual day work, but many have no work at all. A 250-bed shelter dominates the centre of Kotobuki, part of a public network of around 40 built in the past decade. Though these have helped to take 18,000 people off Japan’s streets, it has been harder to check the creeping poverty that put many of them there in the first place.

Last year, the Japanese government recorded relative poverty rates of 16%—defined as the share of the population living on less than half the national median income. That is the highest on record. Poverty levels have been growing at a rate of 1.3% a year since the mid-1980s. On the same definition, a study by the OECD in 2011 ranked Japan sixth from the bottom among its 34 mostly rich members. Bookshops advertise a slew of bestsellers on how to survive on an annual income of under ¥2m ($16,700), a poverty line below which millions of Japanese now live.

This article appeared in the Asia section of the print edition under the headline "Struggling"

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