ABENOMICS AND THE CHALLENGES OF THE LABOUR MARKET IN JAPAN

The aim of the paper is to discuss the challenges of Abenomics in the context of the Japan's labour market reform. Labour market reform is addressed by the so-called third arrow of Abenomics - the economic revitalisation policy of the current Japan's Prime Minister Shinzo Abe. Relatively low unemployment rate does not indicate the good condition of the Japan's labour market, when considering rapid aging of population, decline in average nominal wages and expansion of part-time jobs. Moreover, there is a problem of underutilisation of female, youth and elderly labour forces, lacking an access to regular employment, then, higher wages, better access to social security system and vocational stability. Womenomics, aimed at promotion of female labour forces, enhanced the public debate on the social justice and gender equity, however, without significant changes of social norms and institutional models it is hard to eradicate the outdated, rigid scheme of employment. Moreover, it is hard to provide new permanent jobs in the country trapped in the long-term vicious circle of stagnation and deflation. Therefore, effective aggressive monetary policy and fiscal consolidation need to accompany structural reform of the labour market to make the latter feasible and successful in the long-term.