Japan: Agriculture, Manufacturing, and Trade Services

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Japan
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Introduction
Agriculture with the value-added component as a percentage of GDP in Japan was
recorded at 1.16% in 2016, and this is as per World Bank’s development indicators that were
compiled from reliable recognized sources (Trading Economics, 2019). Agriculture, in this case,
entails forestry, hunting, fishing as well as farming which includes both crop and livestock
production.
Manufacturing as a percentage of GDP stood at 21% in 2016 based on development
index by the World Bank (Trading Economics, 2019). Manufacture in this context referred to
industries of ISIC divisions 15-37.
The trade services as a percentage of Japan’s GDP in 2016 was reported at 7.4% based on
the World Bank’s report of development indicators.
Japan has been ranked as the fourth-richest economy in the world and shipped more than
US$738 billion worth of merchandise across the globe in 2018. It is using the population of
Japan that is estimated at 126 million people, its total $738 billion from exports in 2018 means
that every individual is allocated approximately $5900 in the East Asian island nation. Vehicles
top the list of Japan’s products exported as they account for US$154.1 billion which is 20.9 of
the gross exports, machinery as the second in the list account for $148 billion representing 20.1%
of total exports, electrical machinery and equipment $109 billion representing 14.8%, optical,
technical and medical apparatus $41.3 billion representing 5.6% and lastly iron and steel
contributing $29.9 billion presenting 4.1% of gross exports.
List of importing countries based on Japan's percentage of gross exports. China tops the
list with US$ 144 billion representing 19.5% of total exports, the United States with $140 billion
accounting for 19% of gross exports, South Korea with $52.5 billion representing 7.1%, Taiwan

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accounting for $42.4 representing 5.7% and lastly Hong Kong accounting for $34.7 billion
representing 4.7%.
Japan was ranked as the third largest economy following a remarkable growth shortly
after world war two. However, in recent years, its economy has been declining due to the slump
of the world economy as well as due to natural catastrophes such as earthquakes and tsunami that
took place in 2011. Since 2011, Japan’s growth has been feeble.
Labor market analysis

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Based on the data from this graph it is evident that there was a falling trend of
unemployment from 2008-2018.Also, there was another falling trend of unemployment from
2015-2016 where the rate of unemployment was 0.5% and was brought down to -0.1%.
However, unemployment rose to 5.5% in 2009.
Definition
A mismatch of skills and talents between the unemployed and the number of existing jobs
is referred to as structural unemployment. In most cases, structural unemployment arises due to
changes in the economy for instance deindustrialization making it hard for the unemployed to
find work in emerging industries due to different skill specifications.
Types of unemployment
Frictional unemployment
For Japan, the frictional unemployment in the labor market is not prioritized as a primary
concern because the new graduates fresh from campuses seeking job opportunities as the
government provides simultaneous employment opportunities for fresh graduates.
Structural unemployment
Structural unemployment is common in Japan due to sophisticated and advanced technology. As
one of the countries topping the list of countries with top technology, Japan produces massive
quantities of machines and robots. Thus, a large share of industrial production and some sections
of service sectors employ machines to replace human capital.
Cyclical unemployment
Although Japan is ranked as the third largest economy in the world, Japan at times
experiences recession arising from some forms of global crisis and also due to natural
catastrophes, for instance, the tsunami. In such hard times, people end up being unemployed as